Investors in Singapore and Malaysia broaden their horizons

Malaysia is attracting an increasing number of Singaporean investors

The property markets in Greater Kuala Lumpur and Iskandar Malaysia are expected to generate more sales in the next year, particularly from Singaporean investors, reported FMT News.

The recent of announcement of infrastructure developments that will reduce travel time between Malaysia and Singapore is fuelling sales, according to property consultants at Knight Frank Malaysia.

Iskandar would be a prime area for Singaporeans to buy properties thanks to the new infrastructure, according to Sarkunan Subramaniam, managing director at Knight Frank Malaysia.

"We also see a trend of Singaporeans buying high end residential properties, like condominiums in Kuala Lumpur, as the prices are quite cheap for them due to the current exchange rate," said Sarkunan.

Sarkunan added that Malaysians often opt to invest in overseas property in locations that are familiar to them.

"Familiarity is the key for Malaysians who tend to buy properties abroad, especially in places where they have stayed or been educated before, or places where their children have stayed or studied before.

"The property inquiries we get from Malaysian investors are predominantly in London and Australia, as quite a number of Malaysians are educated in these places or have sent their children there," he said.

Nearly half of all newly built properties in London are sold to Asian investors with Malaysians accounting for five percent of purchasers, according to FMT News.

"Apart from having family members studying or staying abroad, I also see those who buy properties abroad have plans to relocate or migrate there,"

"I see this as the main reason for Malaysians who buy foreign properties, rather than for investment purposes alone, and although returns from the investments are important, they are not the key drivers," he said.

There is a combination of factors that attract Malaysian investors to London, according to Terence Wong, head of research at CIMB Group Holdings Bhd.

"We received quite a number of inquiries when we launched the Battersea project, as they had about 850 units of which 400 units were booked by Malaysians.

"Each unit costs about GBP1 million (US$1.5 million), which is about RM5 million (US$1.6 million), and the fact that there are 400 buyers shows that Malaysians are doing very well, financially," said Wong.

 

Article source: http://www.thethailandlinks.com/2013/03/17/investors-in-singapore-and-malaysia-broaden-their-horizons/