Critical factors that will influence future price and demand for Danga Bay properties are:

  • What will Iskandar Waterfront City (IWCity) do with its land bank near Tune Hotel area?
  • What will Tropicana do with its land bank opposite the Tun Aminah Hospital?

Danga Bay Forecast

  • IWCity and Tropicana are unlikely to further develop properties in the same class as already exists – Country Garden, Bora Residence and Tropez.
  • The current supply is nearing 10000 units with less than 30 percent occupancy rate.
  • IWCity will likely move ahead with its original plan for an International Finance and Commerce Centre or its equivalent in this prime space.
  • There is a chronic shortage of Grade A type offices in Iskandar region.
  • The only newer office blocks which are mid-size (around 15 floors) are located in Medini, a remote part of Iskandar.
  • The upcoming Coronation Park will be the only large-scale commercial office located at the heart of JB Inner City. There is ample room for more players to capture a slice of the MNCs that have made Singapore their regional headquarters.
  • Coronation Park will be an instant success. However, it could also bring about a “Bangkok level” of traffic congestion to the CBD area as the narrow roads around it have no room for expansion.
  • By contrast, the IWCity land bank near Tune Hotel has ample space to address such urban planning headaches.
  • With residential and commercial sorted, it is highly probable that Tropicana will complement it with a 6-star hotel complete with private beachfront.
  • Niche low-density residential units will cater to the Ultra High Net Worth Individuals (UHNWI) who will enjoy this new seafront playground.
  • The UHNWI segment knows no bounds for value. As long as Tropicana offers an exclusive, safe and private environment for them, it will naturally attract membership and its property value will adopt a path independent of market value.

We are constantly updating this area’s DEMAND and SUPPLY, location review in HOTSPOT and future PRICES in our FORECAST section.