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Singapore investors wary of Malaysian property, despite exchange rate high
Some Singapore buyers are wary of purchasing property in Malaysia

Singapore investors wary of Malaysian property, despite exchange rate high

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.

OPPLive Asia 2014 is aimed at agents, developers, financial advisors and other overseas property professionals who want to take advantage of the booming Asian overseas property market. The event includes a host of business and networking opportunities, a packed programme of events and a lively exhibition.

* OPPLive Asia is offering half-price delegate rates until the end of February, reducing registration from the standard price of SGD$395 to SGD$195. To obtain the special early bird admission rate, go to: http://www.opp-connect.com/register-2/

By Adrian Bishop, Editor, OPP Connect

 
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