Singaporeans, foreigners and permanent residents (PRs) will be paying an Additional Buyers' Stamp Duty (ABSD) between three and 10 percent for residential properties.
According to the Ministry of National Development (MND), the ABSD aims "to romote a sustainable residential property market where prices move in line with economic fundamentals."
While the latest measures aim to rein in residential property prices in Singapore, many developers felt that the implementation is very untimely, with analysts fearing that the price growth going forward may even become negative.
In Malaysia, several market watchers and industry players have expressed mixed reactions over theSingapore's latest measures to cool the residential market.
"The newly imposed ABSD at 10 percent is indeed a showstopper for most. Having said that, however, for those who are looking to buy Singapore units for long term investment and for children's education purpose would continue despite the new ruling," said Adrian Un, Director of Mortgage Broker Sdn Bhd.
"I expect Malaysians to adopt a ‘wait and see' approach before investing in Singapore."
Kumar Tharmalingam, Chief Executive Officer of Malaysia Property Incorporated (MPI), noted, "To pay 10 percent premium on top of the three percent stamp duty would be a deterrent for investors but this could be a short term strategy to cool investor sentiment until the market settles down."
Some analysts also expect that Singapore's latest measure will allow more investors to seek much more attractive overseas property investment opportunities, including in Malaysia.
"Malaysia will most likely become an alternative investment base for investors especially for the Chinese investors who are the largest foreign investors in Singapore," said Kumar.
Dato' Vincent Tiew, Executive Director for Sales & Marketing at Andaman Group, opined, "Malaysia with its relatively cheaper property prices is the next good alternative. Many projects in Johor and Kuala Lumpurare becoming more popular in view of property prices and currency stability and exchange rate."
In addition, some market watchers believe this is a good opportunity for some Singaporean investors to consider investing in Malaysia, particularly in Iskandar Region in Johor.
"Perhaps this is a good opportunity for some of those who want to invest in Singapore residential properties to consider Iskandar Region in Johor," said Ho Hon Sang, Managing Director-Property Development Division of Sunway Integrated Properties.
Un added that, "Much has been said about the potential in Iskandar. Potential investors must be vary that Iskandar will suit those who are investing for long term, say five years from today for potential capital appreciation. Short term return is not likely."
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