The recent property cooling measures implemented in Singapore may benefit Malaysia in the short-term, but they could also push up home prices in Johor which could lead the Malaysian government to impose similar curbs, said analysts.
Lee Teng, Keat, Director of International Business at CKS Property Consultants, said that regulations in Singapore would drive investors to look across the causeway.
“Malaysian prices are reasonable and Singaporeans will look to Malaysia as an attractive real estate investment destination considering its returns are better.”
But a number of factors could affect investments in Malaysia, including the impending general election and possibly, new restrictions on foreigners owning properties, particularly in Iskandar Malaysia.
Nicholas Mak, Research Head at SLP International Property Consultants, advised Singaporeans looking to invest in Malaysia to consider factors such as security and familiarity of location. It is also important to note whether potential appreciation of property prices there will be comparable to those on home turf.
“Ease of collection of rentals or if they can be obtained on time is also important before investors in Singapore decide to make an investment in Malaysia just as supply factors are also important in their investment decisions.”
“Iskandar is a case in point as it is much bigger than the whole of Singapore and with more new projects being launched there, it can dampen property prices and this would be an important consideration for investors,” Mak noted.
Meanwhile, Vikrant Pandey, Associate Director at UOB Kay Hian, believes that the regulations in Singapore could boost appreciation of some Malaysian property stocks.
“There are a couple of property stocks in Malaysia that we see good value such as Malaysian Resources Corp Bhd, Dijaya Corp Bhd and E&O Property Development Bhd.”
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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