The Petronas Towers, Kuala Lumpur Photo: Adam_BT
The upcoming Singapore-Kuala Lumpur high speed rail link is boosting demand for property in Malaysia, according to iProperty. The site’s latest H1 2015 report reveals that Malaysia remains the number one investment destination for Singaporean buyers looking at overseas property.
Australia, the Philippines and the UK remain popular locations for those who have bought property overseas, but interest in Malaysia has risen in the past six months from 30 per cent (H2 2014) to 34 per cent (H1 2015).
To Singaporean respondents, the top three reasons to purchase Iskandar Malaysia
are affordable property prices, the enhanced connectivity offered by the rail link in 2018 and confirmation of the Nusajaya High Speed Rail (HSR) stop.
“Greater congestion at the Singapore-Johor border crossing and higher toll rates are cramping growth in Iskandar Malaysia and stopping it from making a real difference in the lives of those staying in Johor,” explains the report. “Ever since toll rates at the Causeway went up in October 2014, a Singapore car on a round trip to Johor Baru has to pay SGD12.80 in toll charges. Hence, the enhanced connectivity via the RTS Network and HSR is seen as a positive move.”
Other Malaysian states, including Kuala Lumpur, Malacca and Penang, have also targeted Singaporean investors, offering up these locations as viable options to investors who are interested in Malaysia. The weak Malaysian ringgit has also helped to encourage interest, with Malaysian prices relatively affordable compared to Singaporean prices.