KUALA LUMPUR: Singapore’s doubling of property taxes for non-residents last week may result in an estimated 15% increase in foreign-buying in Malaysia over the next 12 months.
Singapore has doubled the tax rate for foreigners purchasing residential properties from 30% to 60% to prevent buoyancy that has been introduced by excessive, high-end demand from overseas buyers and preserve affordability for local buyers.In a statement, global real estate technology group Juwai IQI said the move would push more high-end foreign buyers to Malaysia particularly to Johor, Kuala Lumpur and Selangor.
“Most of these displaced buyers will seek property worth RM2mil or above,” it said.
Juwai IQI co-founder and group chief executive officer Kashif Ansari anticipates a significant increase in foreign buyers coming to Malaysia because of the new taxes.
“Malaysia is well placed to benefit from the new tax.
“Malaysia is a much larger country with multiple metro property markets that are each comparable in size with Singapore’s entire home market and could easily accommodate any number of foreign buyers,” he said.
Ansari also said many businesses and family offices based in Singapore have investments in Malaysia. — Bernama
