Singaporeans have tailored needs for Malaysian property investments

Singapore investors have also been pushed by low rental yields and have therefore invested in the larger cities such as Kuala Lumpur.

Singaporean real estate buyers looking into Malaysian property consider security and crime issues as well as being able to flip an asset quickly as top concerns in making future investments.

Property Guru group chief executive Steve Melhuish said that because many have made money flipping properties in Singapore’s property market, capital appreciation is also foremost to such buyers.

According to Asia One Business, Malaysia has tightened up on speculative activities, including implementing a real property gains tax of 10 per cent on disposal profits within the first two years of acquisition of 5 per cent on the third to fifth years.

In a recent survey, Malaysia was the top choice because of its proximity as well as prices being much cheaper.

Singapore investors have also been pushed by low rental yields and have therefore invested in the larger cities such as Kuala Lumpur, Penang, and Johor Baru, where yields are higher.

Malaysia Property Inc general manager Veena Loh said across the Causeway, older condo units in Johor Baru command low yields but the newer ones are doing much better.

Panel members observed that some expatriates in Singapore have bought properties in the special economic zone and are commuting to work, while others use their home as a weekend retreat.

“Malaysian prices are still very reasonable although some sectors have gone up,” said Ho Chin Soon, who runs his own research firm. He advised those who fear abandoned projects to buy from reputable developers.

Owing to Johor’s huge landbank, Ho does not see price pressure in the immediate future.

Many of Singapore’s rich are not averse to buying Malaysian property, but do not want to be bothered with managing their investments, stated Reapfield Properties group chief executive Gerard Kho.

Source: PropertyReport – 18 May 2010

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