The critical factors that will have the most influence on 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 the incumbents – 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 that 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 will likely bring about the “Bangkok type of traffic congestion” to the CBD area as the narrow roads around it has no room for expansion. By contrast, the IWCity land bank near Tune Hotel has ample space to address such urban ills.
- With residential and commercial sorted, it is highly probable that Tropicana will complement it with 6-star grade hotel with private beachfront, niche low-density residential catered to the Ultra High Net Worth Individuals (UHNWI) and water-related playground to display their Yacht toys.
- The UHNWI segment has 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 take on a path independent of market value.