Fears of restrictions on foreign property ownership in Malaysia are cooling demand from buyers in neighbouring Singapore, despite record exchange rates
Despite a high in Singapore dollar exchange rates, investors are becoming more wary of buying Malaysian real estate, say market experts.
The Singapore dollar yesterday (Tuesday 11 February) hit a 16-year high against the Malaysia ringgit to 2.6328, due to capital flowing from emerging markets to developed markets, say analysts.
One example is the special Iskandar Malaysia economic zone, which has been popular with Singapore investors, who have been responsible for around one-third new-build sales, until recently, when buying has slowed.
Agents and market experts say investors have become increasingly cautious about property investments in Malaysia because of uncertainty over possible restrictions on foreign property ownership.
Johnny Chng, Head of International Projects for Singapore-based agent OrangeTee, agrees that investors are more cautious. ”Investors in general would want a clearer picture. They would be scrutinising every project, and they will be very selective when they do their investment,” he has told the Channel News Asia website.
Nicholas Mak, Executive Director at SLP International Property Consultants, says the weakening Malaysian ringgit may be a short-term issue, but if it continues for three to six months, interest from Singapore investors may increase.
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By Adrian Bishop, Editor, OPP Connect