Singaporean demand for property projects resonates reassurance for UEM Land Holdings Bhd.
The republic’s policy to tighten housing regulation has affected purchasing power in Singapore’s market, confirmed managing director and chief executive Datuk Wan Abdullah Wan Ibrahim.
In April, Singapore authorities announced its decision to tighten rules to ensure developers reflect the size and layout of apartments more accurately – protecting buyers who are less familiar with the property market.
Singapore’s Urban Redevelopment Authority said development of unfinished apartments must commission drawn-to-scale plans to buyers and provide breakdown of a unit’s floor area.
He said the majority of foreign buyers in Nusajaya, Johor, were Singaporeans. The remainder of the purchasing market is made up those coming from Japan, China, UK, Australia, Vietnam, Indonesia, South Korea, and the Middle East.
“Generally, our Singaporean neighbours are in favour of higher end developments, especially projects with strong security system, lush green environment, and are lifestyle-driven,” said Wan Abdullah.
Private homes sales in the republic reached new heights in the first quarter of 2012 despite government’s market cooling efforts. Analysts are fearful that authorities may now moderate sentiment.
More Singaporean property buyers are expected to buy properties in Malaysia due to the tightening regulations, reported Steve Melhuish, founder of Property Guru Group.
Melhuish said property prices are at an all-time peak in Singapore and price declines result in Singaporeans investing elsewhere, according to The Malaysian Reserve.
“The big price difference between Singapore and Malaysia of approximately five to six times cheaper will mean continues investment from Singapore.
“For example, for RM1 million US$ 314,000, Singaporeans can afford a small three to four room residence in Singapore versus a big condo or even bungalow,” offered Melhuish.
Approximately 50 per cent of UEM’s Land Holdings total purchases are foreigners, said Melhuish.
UEM Land has four ongoing projects in Nusajaya: East Ledang, Nusa Idaman, Puteri Harbour, Nusa Bayu, and Horizon Hills.
Melhuish expects that the future of the Malaysian property looks bright as it supported by a young population, urbanization, and reduction in household sizes.
“In addition, ongoing Economic Transformation Programme initiatives in Kuala Lumpur infrastructure, financial services, plus Iskandar developments will continue to drive foreign investment.” Summarised Wan Abdullah.
Source: PropertyReport – 2012 Jun 12