Posted on 27 December 2011 - 05:36am
Eva Yeong
sunbiz@thesundaily.com
PETALING JAYA (Dec 27, 2011): Malaysian property developers with projects in Singapore will have to rethink their strategy, including selling more to Singaporeans, after the island nation came out with a new ruling on additional tax for foreign buyers early this month, said Ho Chin Soon Research Sdn Bhd director Ho Chin Soon.
"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. Malaysian developers with projects there now need to change their strategy and sell to Singaporeans," he said.
On Dec 7, the Singapore government announced an additional stamp duty of 10% on the value of residential properties sold to foreign buyers in a bid to cool down the property market, as well as a 3% tax on permanent residents and citizens who buy a second or third home.
Among the big local property players with exposure to Singapore properties are SP Setia Bhd, Selangor Dredging Bhd, IOI Corp Bhd and YTL Land and Development Bhd.
Ho said the new ruling also affects Singaporean property developers who also depend on foreign buyers, especially those from mainland China who make up a sizeable portion of foreign property buyers in the republic.
"Nobody is happy about it," he said.
However, S P Setia Bhd president and CEO Tan Sri Liew Kee Sin had earlier said the company does not expect the new measures to affect its property sales in Singapore as 70% of its buyers are local upgraders.
The additional stamp duty is expected to help cool investment demand for private residential properties, especially from non-resident foreigners, and avoid the possibility of a major correction in the future.
It was reported that foreign purchases in Singapore accounted for 19% of all private residential property purchases in the second half of this year, reflecting a 7% increase from the first half of 2009.
However, demand from non-resident foreigners is expected to dry up quickly with the new measures in place.
Back to Main Page: www.VulcanInternational.blogspot.com
Eva Yeong
sunbiz@thesundaily.com
PETALING JAYA (Dec 27, 2011): Malaysian property developers with projects in Singapore will have to rethink their strategy, including selling more to Singaporeans, after the island nation came out with a new ruling on additional tax for foreign buyers early this month, said Ho Chin Soon Research Sdn Bhd director Ho Chin Soon.
"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. Malaysian developers with projects there now need to change their strategy and sell to Singaporeans," he said.
On Dec 7, the Singapore government announced an additional stamp duty of 10% on the value of residential properties sold to foreign buyers in a bid to cool down the property market, as well as a 3% tax on permanent residents and citizens who buy a second or third home.
Among the big local property players with exposure to Singapore properties are SP Setia Bhd, Selangor Dredging Bhd, IOI Corp Bhd and YTL Land and Development Bhd.
Ho said the new ruling also affects Singaporean property developers who also depend on foreign buyers, especially those from mainland China who make up a sizeable portion of foreign property buyers in the republic.
"Nobody is happy about it," he said.
However, S P Setia Bhd president and CEO Tan Sri Liew Kee Sin had earlier said the company does not expect the new measures to affect its property sales in Singapore as 70% of its buyers are local upgraders.
The additional stamp duty is expected to help cool investment demand for private residential properties, especially from non-resident foreigners, and avoid the possibility of a major correction in the future.
It was reported that foreign purchases in Singapore accounted for 19% of all private residential property purchases in the second half of this year, reflecting a 7% increase from the first half of 2009.
However, demand from non-resident foreigners is expected to dry up quickly with the new measures in place.
Back to Main Page: www.VulcanInternational.blogspot.com
