27% of private property transactions in Singapore sourced to Malaysians

Malaysia News.Net
Saturday 6th March, 2010

Of private property transactions in Singapore last year, one quarter were by Malaysians making them the top source of foreign investment for overseas property investment in the island republic.

Malaysia’s share of 27% of total transactions compares with 20% for Indonesia the second largest investor. However, with Chinese and Indian transactions on the rise by 20%, Malaysia’s total stake is far lower than it was 10 years ago.

In all, 16% of homes valued over S$1.5million were sold to foreign investors making it the most popular segment of purchase.

The Interlace, Cyan and Carribean at Keppel Bay are the three top properties invested in by overseas property investment buyers with a staggering 12-25% of the transactions made by non-Singaporeans.

Real estate services group DTZ believe that Singapore’s growing importance as an Asian hub is likely to draw in more investors from overseas, increasing price appreciation in the higher end segment, but did note that price rises could be capped by government intervention.

A spokesman for DTZ said: “Runaway increase in prices like in 2007 is however not likely as concerns like weak consumer demand in both the US and Europe, along with credit tightening in China and possible government intervention to cool the market remain.”

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