Due to the hype of Pengerang Oil & Gas Boom I decided to visit Pengerang on a Fact Finding Mission. To see First hand & to feel the sentiment of the people.
My day begins on 12th of March, 2014 at 6.00a.m. Singapore Time. As I crossed the Woodland Causeway I was soon on the EDL (Eastern Dispersal Link) towards the Western Coastal Highway – then I took a turn into the Pasir Gudang Highway & proceeded to Masai Town (Now Ecoworld Territory).
As I turned into the Masai Town I noticed the sheer volume of cars moving slowly into the JB City Direction. It was a sight to behold indeed. Cars, bikes, vans and all converge on the narrow road from Taman Air Biru, Taman Nusa Damai, Taman Cendana, Taman Pasir Putih, Taman Scientex, Taman Bukit Dahlia, Taman Cahaya Masai & Taman Kota Masai all squeeze into the 2 lanes road to join the 4 lanes Pasir Gudang Highway!
No wonder there is an urgent need to upgrade Pasir Gudang Highway into a 6 Lane Highway. Another EXPRESS WAY being proposed is the 6 Lanes Highway From AEON TEBRAU CITY ALL THE WAY TO KOTA MASAI.
NOTE: RIGHT NOW JKR IS BUILDING A 6 LANE WIDE CONNECTING ROAD (1.8Km) FROM BANDAR SRI ALAM TO TAMAN NUSA DAMAI. A RM20 Million Project ready by 2015. When Ready Taman Nusa Damai Will Become The Most Strategic & Valuable Place In Eastern Iskandar.
By Day Break I crossed the Beautiful & Picturesque Bridge over Senai -Desaru Highway. On both sides of the highway were Oil Palm Plantations – stretching for miles after miles.
Finally I arrived in Bandar Penawar & Desaru. Here, I had morning coffee break. It was a time to gather some facts from the local people. There is a new found optimism here. The people told me property prices have doubled in Desaru area but for Sungai Renggit & Pengerang house prices have Shot Up 4 Fold! And there is a constant stream of cars, lorries & long trailers passing by Desaeu to Pengerang daily. And for Weekend There Is A Surge of Tourists From Singapore & also all parts of Malaysia to Desaru.
After the short break I drove with heightened interest & curiosity in the direction of Pengerang – another 30 minutes journey! I had been to Sungai Renggit 7 years ago in year 2007. How is it now? What wil it be like after 7 years? These and many other questions raced through my mind as I got nearer and nearer Sungai Renggit Town. It was a really sleepy town, then. What is it like now?
There Is Really Nothing New Here To Spring Any Surprise. As I approach the Sungai Renggit Rustic Town I saw the Same Old Dilapidated Wooden Houses on Both Sides of the Narrow and Dusty Roads. However, These Rickety Wooden Houses Sit On 4,800 to 5,000 sq ft Land. I wondered how much these run down Old Wooden houses on these Lands are worth.
At a Corner Coffee Shop I met the Lady Boss to make inquiry. She phoned Mr. Wong, the Local Housing Agent. Mr. Wong arrived within minutes. And I had a time of briefing of The Tremendous Boom Time Here In The Pengerang Region.
“Those Wooden Old Houses You Saw On Both Sides Of The Road Are Leasehold With Only 30 Years Lease Remaining,” Mr. Wong Said. “And The Asking Price Is Between RM1.2 to RM1.3 Millions!,” He add further.
WOW! According to Ms Yong, Manageress of PUBLIC BANK, Taman Perling Branch, Johor – No Banks Will NOT Give Any Housing Loan For Properties Less Than 60 Years Lease Left.
“But These Buyers Paid CASH For Them – Yes! Millions In CASH DEAL!,” He replied. “You mean these Rickety, Run Down, Dilapidated Wooden Houses – Some Falling Apart are worth these prices?” I asked again in disbelief. “Yes, they are snapped up in no time once the “For Sale Sign” Is Put Up. Demand exceeds supply here,” Mr. Wong replied.
“Yes!”, the Lady Boss joined in the conversation. And she add further, “Last year, a Wooden Shop House Was Sold For RM800,000. It is located away from the Main Road on a back lane. And it commanded such an exorbitant price. The seller should be glad for getting such a good price. But he is not happy at all. Because he said that after he sold price still race up to RM1.3 Millions right now!” “And these Old, Old Shop Houses Are Made of Wood,” you know?
“We are Baffled By These Crazy Asking Prices Now,” quipped Mr. Wong. “Sometimes, even we Housing Agent hear incredulous and crazy asking prices from landlords & property owners alike. We dare not even quote these unheard of asking prices to prospective buyers. They might call us mad in asking for Such Sky High Prices!” But the Surprising Thing Is People Are Actually Paying For Them – Ridiculous Prices – Many Paid By CASH!
These Are The Facts. 2 Story Houses Are Selling For RM700,00 & Renting For RM3,500 per month. Since Demand Exceeds Supply There Are Not Enough Rental Houses at the moment. So people are paying almost RM2,000 for a small hotel room on a monthly basis. 4 workers will cramp into a small hotel room – the Hotel is converted from a 3 story Shophouse.
And Land Prices Have Gone Up 1,000% Around Sungai Renggit to Pengerang. Mr. Wong brought me to see a 6 Acre Oil Palm Land 5 km away from Renggit Town. The 6 acres land consist of 2 titles – The One Acre Piece is Freehold While the 5 Acre Piece is Leasehold.” The asking price is RM30 psf – Cheapest Now On Offer. Anyone Interested may call me 014-6101668 (Weekday only). Others nearer Town are going for RM80 to RM90 psf. So according to Mr. Wong this is a bargain – the land will be sold out soon or the landlord might raise asking prices.
Pengerang – From A Sleepy Fishing, Farming Region To BOOM TOWN!
What Is The Cause Of This Great Transformation? Is It Real And Permanent? Well, according to Mr. Wong there will be an influx of 50,000 to 60,000 Oil & Gas Workers in Pengerang.
The Pay Structure Of These Skilled Workers Are:
1) RM3,000 to RM4,000 for General Skilled Workers
2)RM7,000 for Middle Executives.
3)RM20,000 For High Ranking Managers.
60,000 Workers With Their Families Plus Downstream Demand For Goods & Services Like New Restaurants, New Housing, New Car Repair Shops, New Hair Saloons And So On And So Forth Will Multiply The Population to 300,000 or even Half a Million Strong!
The RM60 Billion Mammoth Oil & Gas Pengerang Project & The Proposed 3rd Bridge Link to Singapore Will Propel This Up Coming Region Into Another Dynamic Zone For Iskandar
LATEST UPDATE ON 26TH MARCH 2014
THE CAPEX FOR RAPID OF PENGERANG OIL & GAS HAS BEEN REVISED UPWARD TO RM190 BILLIONS – THIS WILL MAKE PENGERANG THE HOTTEST DEVELOPMENT REGION ON PLANET EARTH!
No wonder there is a mad scrambling for all houses, lands, plantations and other limited and precious resources here. So great is the panic buying- prices have even overtaken Bukit Indah – the current reigning champion for Mass Housing from Malaysians working in Singapore! And at this frantic speed prices might even rise to match Horizon Hill, Puteri Harbour or even Singapore?!!!”
As I pulled away from Sungai Renggit it was already late afternoon. By passing the exit to Kong Kong/ Kota Masai Exit I proceeded another 20 minutes to the Exit at Ulu Tiram. Here prices are still at a fraction of Nusajaya or Pengerang. Last year I bought a property here for a song through Johor High Court Auction – Only RM75,000 for a Freehold Semi-Detached House on 4,000 sq ft! A Real Bargain Indeed!
Like Kota Masai & Sungai Renggit – Ulu Tiram is a total laggard. So I have picked up 3 properties here. A Single Storey on 1,600 sq ft for RM50,000, a Double Storey with 1980 sg ft (22′ by 90′ sq ft) for RM142,000. And a Double Storey with 1,080 sg ft for RM73,000. All with Freehold Titles & I was the only sole bidder in High Court!
In Taman Perling, I called Mr. Tan Pao for a chit chat. He told me he just sold 2 houses in Nenas area, Taman Kota Masai. Both single storey for RM127,000 each. People are now bidding from Court Auction as high as RM120,000 now. And he sold 4 Units of Double Story Houses in Taman Air Biru for RM135,000. He had a total of 14 Double Story Houses in Taman Air Biru. Of the 14 he bought 10 units from Dana Harta at Only RM60,000 each.
Since the Double Story in Taman Air Biru can command a rental of RM1,000 to RM1,200 why let go at RM135K only. He told me he sold all 4 units at RM135K each to Investors. For the next 2 he has increased the price to RM145K per unit. He laughed as he said,”There are people who boast loudly that they own lots of houses, but upon further follow up they admitted that they only have two properties. As for me I could say I own an entire housing estate if I wanted to.” This jovial man is the Champion in Kota Masai. He just bought another 8 houses recently – making him the owner of over 100 properties.
After Having Traveled Throughout Iskandar these 13 Years and Viewed More Than 10,000 houses in Iskandar I think Taman Perling Is The Most Central For Singaporeans. Houses may be old but does it matter. The Underlying Land Is Superior In Its Singapore Centric Location.
It was already late at night as I proceeded to Singapore by way of the New Nusajaya Highway. To my surprise I saw Tall Construction Cranes Lighted Up Behind Lego Land. So I went to check on it. A Huge Brilliant Green Led Sign “THE MERIDIN” greeted me.
Contruction Work is Still Going On Into The Wee Hours of The Mid Night Till Day Break – 24 Hours Non Stop For AFINITY, THE MERIDIN & I MEDINI. These projects are by Capital Land, Mah Sing & WCT respectively. And the Place look Ultra Modern indeed. Comparable To The Very Best Any Where In The World Today!!!
I notice the LED LAMP POSTS ON BOTH SIDES OF THE HIGHWAY as I passed by NUSAJAYA. These LED LIGHTS Are Not Found Yet In Other Parts of Malaysia. The Light Emited Is Very White & Bright.
Soon I crossed into Singapore at Tuas. For the First Time I saw a contrast – The Lamp Post on PIE/ECP In Singapore is still using the outdated old street lights. And The Construction of a small connecting flyover near Tuas has stopped work when day light fades. As I reached my Condominium (already 10 year old) it dawned on me that only minutes away in Medini, Nusajaya – A Brand New World Is Now In Transformation.
SO ISKANDAR IS REALLY THE BEST KEPT SECRET IN THE WORLD TODAY!
IF YOU HAVE NOT YET INVESTED – WHAT ARE YOU WAITING FOR?
UPDATE ON 22ND, MARCH, 2014
Unsure of Investing In Iskandar? There Is An Easier Way. In The Next Posting I Mentioned About MP CORP (Stock Quote 6548) As A Property Laggard In Iskandar.
MP CORP Has 288 Million Shares. 72% Is In The Hands of Top 30 Substantial Share Holders. The Major Share Holder – TOPLANDER Alone Holds 61% Tightly.
So There Is Only 28% Shares Free Float. About 86.4 Miliion shares are traded in the market. At 39.5 Cts Closing Price the 28% equals to RM34 Millions.
So If Only 5,000 people will each Invest About RM6,000 each – The Remaining 28% MP Corp Shares Will Be Taken Up.
Note: RM6,000 Can Buy 15 Lots or 15,000 Shares of MP Corp at 39.5 Cts Each.
Will You Be One of The Most Fortunate 5,000 people Investing RM6,000 in MP Corp?
Please Do Your Own Due Diligence. Buy/Sell Your Own Decision.