Malaysia top investment choice for Singaporeans

By Widya Sharkawi

Steve Melhuish, CEO of PropertyGuru Group

Many prospective Singaporean buyers consider security or crime issues as a major factor in buying properties in Malaysia but they also leverage on the quick flip of an asset.

Steve Melhuish, Group CEO of PropertyGuru Group, noted that capital appreciation is another consideration for many buyers who have made money by flipping properties in the dynamic Singapore property market.

"Most of them ask 'can I make 20 to 30 percent per annum in capital appreciation?'. Although there could be capital appreciation, the answer would be 'no'," said Melhuish at a property panel discussion in Kuala Lumpur yesterday, in line with the rebranding of HomeGuru to PropertyGuru.

The country rolled out measures to tighten up speculative activities, including a 10 percent real property gains tax on disposal profits within the first two years of acquisition and five percent during the third to fifth years.

Despite this, more Singaporeans remain keen on overseas properties. In fact, Malaysia is their top choice because of its proximity and lower prices. Additionally, lower rental yields have also lured Singaporeans to invest in Kuala Lumpur, Johor Bahru and Penang.

Veena Loh, General Manager at Malaysia Property Inc, noted that older condo units in Johor Bahru provide low yields compared to the newer ones which do much better.

Meanwhile, more projects aimed at the working and student population are expected to be launched once Iskandar Malaysia reaches a tipping point.

With the rise of new infrastructure and a number of catalytic projects, investors are more confident to invest in Malaysia.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit today.

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