Singapore Real Estate Investors Wooed by Malaysian Property Incorporated
In a bid to get more Singaporeans to purchase property in its country, a Malaysian government-linked firm, Malaysian Property Incorporated, recently set up its first office in Singapore. The office is its first in the region, and operates as a showroom as well. Choosing Singapore as a launch pad, they aim to improve Malaysia as an investment destination amongst locals and foreigners. In its showroom, they will be showcasing upcoming projects from Malaysian developers.
Speaking to the press, the Chairman of Malaysia Property Incorporated, Thong Yaw Hong, said that Singapore is a strategic location to showcase Malaysian real estate projects. Singapore is a country where many tourists and travelers cross roads, as well as high net worth individuals who want to invest in properties and real estate in Malaysia.
At present, Kuala Lumpur, Johor Baru and Penang are popular spots for property purchases, with 90% of foreign investors choosing to purchase real estate there. Malaysia’s population growth is resulting in a housing demand, thus the company hopes to bring in more investors to invest in other parts of the country.
However, there are changing regulations that may cause some investors to think twice. Starting from January this year, only homes that are RM 500,000 and above, can be purchased by foreigners. The previous amount was RM 250,000. The average value of a home in Johor Bahru, a two-storey terraced house, costs between S$250,000 to S$270,000, about half a million ringgit. Thus, there are few issues on those regulations.
Recently, Singapore has imposed property cooling measures, as with countries such as China as well. Thus, they forsee that Malaysia can become an attractive alternative for investors. The firm aims to open more regional offices, to aid their expansion plans.