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December 27, 2011

Malaysia property developers in S'pore to consider new strategies

Malaysian-based real estate developers with exposure to Singapore properties will have to consider new strategies, after Singapore imposed new cooling measures for foreign buyers, according to Ho Chin Soon, Director of Ho Chin Soon Research Sdn Bhd.

“There is a big effect because for the top brands (of Malaysian property developers) who are there, the buyers are mostly Malaysian buyers who follow their brand,” he said.

“Malaysian developers with projects there now need to change their strategy and sell to Singaporeans.”

Earlier this month, the Singapore government announced a 10 percent additional stamp duty on the value of residential properties sold to foreign buyers. It also imposed a three percent tax on permanent residents (PRs) and citizens who are acquiring their second or subsequent homes.

Among these large property players with projects in Singapore are IOI Corp Bhd, Selangor Dredging Bhd, SP Setia Bhd and YTL Land and Development Bhd.

Ho added that the latest regulations affect Singaporean property developers who depend on foreign buyers.

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