Malaysians now the top overseas buyers of Singapore properties

Malaysians have outpaced the Chinese as the top overseas buyers of Singapore properties, according to data compiled by the Urban Redevelopment Authority (URA) and CBRE Research.

In 1H2012, Malaysians accounted for 27.6 percent of all foreign purchases, while buyers from China comprised 20.3 percent.

In comparison, the Chinese took pole position in 2H2011 at 29.6 percent with Malaysia trailing at 18.7 percent.

“The resilience of Malaysian buyers is due to Singapore’s proximity. There are also many Malaysians who are permanent residents (PRs) in Singapore, and PRs are allowed to purchase at least one ‘ABSD-free’ private property,” said Ong Kah Seng, Director at R’ST Research.

He added that Indonesian buyers were also active in 1H2012 at 18.4 percent, rebounding from a minor slowdown post- ABSD (additional buyer’s stamp duty).

“Singapore is still a well-tested and well-positioned property hotbed for them, especially for those who have been on the sidelines during the prior prolonged sluggish central region home performance period. With homes in the central region seemingly poised for sustained recovery, some people (especially those who are PRs) may decide to quickly purchase a unit,” noted Ong.

In general, foreign property buyers seem to have adjusted to the ABSD and are now searching for Singapore homes.

Not surprised by the trend, Lee Sze Teck, Senior Manager, Research and Consultancy, at DWG, said: “After all, Singapore is still one of the best places in the region to invest in property because of its clarity in ownership of property, low-tax environment, absence of capital gains tax, low interest rate and stable government.”

Source : PropertyGuru – 5 Jul 2012

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