Residential property prices in Malaysia's Johor Baru have jumped 40 per cent during the past five years, The Business Times has reported.

Local developers have witnessed strong growth in transaction values of property projects in the city, which once suffered from new project launches.

Danga Sdn Bhd's Casa Almyra project is a good example for this statement as its prices have gone up to RM800,000 (US$270,040) from RM450,000 (US$151,899) in 2006.

According to Samuel Tan, executive director of KGV-Lambert Smith Hampton (Johor) Sdn Bhd, the property owners and buyers in Johor Baru should see another 10-20 per cent rise in prices by the end of this year.

Prices of commercial land and properties in areas such as Jalan Datuk Abdullah Tahir, Danga Bay and Tebrau, have more than doubled since 2006.

"People are land-banking in Johor Baru because they see something in Iskandar Malaysia," Tan said.

Meanwhile, several Malaysia's listed developers have recently launched its projects in the country's second largest urban area.

SP Setia Bhd have introduced at least four simultaneous projects in Iskandar, while Bandar Raya Developments Bhd and IOI Properties have also launched major developments.

Datuk Lim Kang Hoo, chief executive officer of Danga Bay Sdn Bhd said that the rising interest has brought about 90 per cent of stalled commercial and residential projects in Johor Baru back to life.

Via Property Report