Singapore is a popular property investment destination for wealthy Malaysians. (Photo: William Cho / Wikimedia Commons)
Singapore was ranked the second top choice for wealthy Malaysians who can afford offshore real estate, according to PropertyGuru’s latest market sentiment study.
Of 326 individuals surveyed online, 21 (seven percent) own a high-rise or landed home outside Malaysia. Of this, 20 percent have acquired a house in Singapore.
Meanwhile, Australia took the top spot, with 23 percent having bought a home there, while India and Germany were also among the most popular choices, with a respective 18 percent and eight percent of those surveyed owning homes there.
“According to other studies, many Malaysians choose Australia as their second home as it is located comparatively close to Malaysia at a few hours’ flight (away), and for its better working environment and better education system,” said the report.
Other countries favoured by those surveyed are Hong Kong (seven percent), Japan (six percent), China (five percent), Thailand (five percent) and the UK (four percent).
51 percent of the 23 respondents who own either overseas homes or non-residential properties noted that prices in those markets were cheaper than those in Malaysia, despite the softer ringgit.
The top reasons for buying offshore real estate are capital appreciation (30 percent) and children’s education (29 percent). 27 percent revealed that the overseas properties they have bought are situated in their countries of residence, while a similar percentage were attracted by good funding options.
Other reasons cited include favourable government policies (24 percent), retirement (23 percent), migration (20 percent), and relocation to a better environment (16 percent).
Moving forward, more Malaysians are now keen to purchase overseas properties, particularly in Australia, which continues to be the most popular market for 52 percent of 37 respondents. Other target markets for this group are Singapore (23 percent), Indonesia (15 percent), and the UK (14 percent).
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories, email cheryl@propertyguru.com.sg
