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The investment thread (Finally)
- Thread starter wuqi256
- Start date
Malaysia vs Singapore: Which has a Better Property Market?
By Farah WahidaJan 24, 2014
The Malaysian property sector remains sizzling hot despite the new cooling measures, while that in Singapore is slowing down. But can we really say that the former has outshined the latter?
In this article, we will examine the pros and cons in each markets so that you can decide for yourself. Specifically, we will discuss Mortgage Rates, Resale Prospects, Land Supply and Rental Yields.
Generally, the real estate market of Malaysia and Singapore can be likened to Charles Dickens’ famous novel “A Tale of Two Cities.” In other words, one is going south and the other is going north even though both have introduced cooling measures.
Malaysian real estate, especially those in Iskandar and Klang Valley, are still attracting many foreign buyers in spite of the higher real property gains tax (RPGT) and heftier minimum purchase price of RM1 million from RM500,000 previously.
On the other hand, Singapore’s real estate sector is cooling down due to the new property curbs like the total debt servicing ratio (TDSR) framework, which has slashed the loan-to-value (LTV) ratio and imposed a ceiling on monthly debt repayments.
In terms of mortgages, Singapore has enjoyed lower rates of one to three percent in the past decade, while that in Malaysia was between four and six percent. In this aspect, Singapore has the upper hand, as lower rates lead to higher capital gains upon resale.
However, many borrowers in Malaysia are only required to shell out a 10 percent down-payment, while those in Singapore have to pay heftier amounts of 40 to 60 percent based on the number of their outstanding property loans.
In addition, Malaysia has implemented the Deferred Payment Scheme (DPS), meaning borrowers can wait until the Temporary Occupancy Permit (TOP) has been granted before paying any instalments. As such, some investors prefer Malaysian properties due to lighter payment terms.
Looking at resale prospects, Singapore’s property market is more predictable, considering it has been a real estate hub for a long time. Historical trends are well established and most property agents can easily quote resale prices in various districts, without the need to glance at their notes.
It’s the opposite for Malaysia, especially in Iskandar. Although there are plenty of new property projects there, their prices when resold in 10 or 15 years’ time remain a mystery.
On the positive side, this means the country’s property market can be compared to a rough gemstone that has yet to fully shine. In simpler terms, Malaysian properties have the potential to multiply your investments. This is different from Singapore, where it’s getting harder to get resale prices higher than district norms. But an untested resale market is also a downside due to the presence of many speculators.
Comparing land supply, this asset is scarce in Singapore, but plenty in Malaysia’s Iskandar region, given that it’s twice the size of the city-state. As such it comes as no surprise that property prices are more expensive in the republic. As we say in economics, scarce resources command premium prices.
But the downside to this is that few people can afford to invest in Singapore properties, or even buy a home. Interestingly, even Singaporeans themselves are shunning local real estate in favour of Malaysian properties. For example, Singaporean purchased a six-room mansion in Johor Bahru for just RM550,000 (S$211,602) in 2010, while in Singpore, that price can only get you a two-room flat.
However, Iskandar’s abundant land supply could also backfire due to the possibility of a glut, given the growing number of development projects. Nevertheless, it’s still too early to say even in places like Iskandar; the high speed rail link isn’t even built. And if we recall the golden rule of property buying, it’s location that matters, not numbers.
In terms of rental yields, Malaysian properties usually offer higher rates compared to Singaporean real estate due to their lower prices. Moreover, many developers have introduced schemes that help homeowners find suitable tenants, guaranteeing rental yields of between six and nine percent. Even though it comes with a service fee, this programme is a big hit among Singaporean landlords, who encounter difficulties in finding and managing tenants abroad.
Other factors that work in Malaysia’s favour include: property prices are more affordable compared to other Asian countries. The nation is politically stable and generally free from natural disaster like floods, tsunamis and earthquakes.
Apart from a flourishing economy with a forecasted GDP growth of 5.5 percent for 2013, doing business in the nation is also easier. In fact, the World Bank ranks Malaysia as the sixth friendliest country in the world to do business. In addition, Middle Easterners and Chinese are investing huge amounts of monies in Malaysia property market and other business sectors.
As such, it’s safe to say that that now is a good time to invest in Malaysian properties in spite of the latest cooling measures. With more affordable prices, you are sure to get better deals. However, please stick to well established Malaysian developers and projects that are generating lots of buzz like The Mews by E&O properties, and Layar Intant Sdn Bhd’s The Binjai on the Park.
As for Singapore, it’s resale property market is simply more consistent and predictable, when it comes to resale values.
http://www.propertyguru.com.my/blog/tag/malaysia-vs-singapore-which-has-a-better-property-
By Farah WahidaJan 24, 2014
The Malaysian property sector remains sizzling hot despite the new cooling measures, while that in Singapore is slowing down. But can we really say that the former has outshined the latter?
In this article, we will examine the pros and cons in each markets so that you can decide for yourself. Specifically, we will discuss Mortgage Rates, Resale Prospects, Land Supply and Rental Yields.
Generally, the real estate market of Malaysia and Singapore can be likened to Charles Dickens’ famous novel “A Tale of Two Cities.” In other words, one is going south and the other is going north even though both have introduced cooling measures.
Malaysian real estate, especially those in Iskandar and Klang Valley, are still attracting many foreign buyers in spite of the higher real property gains tax (RPGT) and heftier minimum purchase price of RM1 million from RM500,000 previously.
On the other hand, Singapore’s real estate sector is cooling down due to the new property curbs like the total debt servicing ratio (TDSR) framework, which has slashed the loan-to-value (LTV) ratio and imposed a ceiling on monthly debt repayments.
In terms of mortgages, Singapore has enjoyed lower rates of one to three percent in the past decade, while that in Malaysia was between four and six percent. In this aspect, Singapore has the upper hand, as lower rates lead to higher capital gains upon resale.
However, many borrowers in Malaysia are only required to shell out a 10 percent down-payment, while those in Singapore have to pay heftier amounts of 40 to 60 percent based on the number of their outstanding property loans.
In addition, Malaysia has implemented the Deferred Payment Scheme (DPS), meaning borrowers can wait until the Temporary Occupancy Permit (TOP) has been granted before paying any instalments. As such, some investors prefer Malaysian properties due to lighter payment terms.
Looking at resale prospects, Singapore’s property market is more predictable, considering it has been a real estate hub for a long time. Historical trends are well established and most property agents can easily quote resale prices in various districts, without the need to glance at their notes.
It’s the opposite for Malaysia, especially in Iskandar. Although there are plenty of new property projects there, their prices when resold in 10 or 15 years’ time remain a mystery.
On the positive side, this means the country’s property market can be compared to a rough gemstone that has yet to fully shine. In simpler terms, Malaysian properties have the potential to multiply your investments. This is different from Singapore, where it’s getting harder to get resale prices higher than district norms. But an untested resale market is also a downside due to the presence of many speculators.
Comparing land supply, this asset is scarce in Singapore, but plenty in Malaysia’s Iskandar region, given that it’s twice the size of the city-state. As such it comes as no surprise that property prices are more expensive in the republic. As we say in economics, scarce resources command premium prices.
But the downside to this is that few people can afford to invest in Singapore properties, or even buy a home. Interestingly, even Singaporeans themselves are shunning local real estate in favour of Malaysian properties. For example, Singaporean purchased a six-room mansion in Johor Bahru for just RM550,000 (S$211,602) in 2010, while in Singpore, that price can only get you a two-room flat.
However, Iskandar’s abundant land supply could also backfire due to the possibility of a glut, given the growing number of development projects. Nevertheless, it’s still too early to say even in places like Iskandar; the high speed rail link isn’t even built. And if we recall the golden rule of property buying, it’s location that matters, not numbers.
In terms of rental yields, Malaysian properties usually offer higher rates compared to Singaporean real estate due to their lower prices. Moreover, many developers have introduced schemes that help homeowners find suitable tenants, guaranteeing rental yields of between six and nine percent. Even though it comes with a service fee, this programme is a big hit among Singaporean landlords, who encounter difficulties in finding and managing tenants abroad.
Other factors that work in Malaysia’s favour include: property prices are more affordable compared to other Asian countries. The nation is politically stable and generally free from natural disaster like floods, tsunamis and earthquakes.
Apart from a flourishing economy with a forecasted GDP growth of 5.5 percent for 2013, doing business in the nation is also easier. In fact, the World Bank ranks Malaysia as the sixth friendliest country in the world to do business. In addition, Middle Easterners and Chinese are investing huge amounts of monies in Malaysia property market and other business sectors.
As such, it’s safe to say that that now is a good time to invest in Malaysian properties in spite of the latest cooling measures. With more affordable prices, you are sure to get better deals. However, please stick to well established Malaysian developers and projects that are generating lots of buzz like The Mews by E&O properties, and Layar Intant Sdn Bhd’s The Binjai on the Park.
As for Singapore, it’s resale property market is simply more consistent and predictable, when it comes to resale values.
http://www.propertyguru.com.my/blog/tag/malaysia-vs-singapore-which-has-a-better-property-
double?I have received quite a number of invitation to join innovative investment schemes. The companies usually turn out in the MAS Investor Alert List. If in doubt, do check here: http://www.mas.gov.sg/IAL.aspx?sc_p=A The latest one going around is the German Government Listed Building Investment. Beware.
I have been introduced to an MLM
Scheme involving a search engine called acesse.com.
Any views on it?
Hi all
would like to seek your views on Philippines real estate. Has anyone bought real estate there? I am very excited with the developments in Philippines - low base, improvement in political stability, economy. I have made small investments there so far. Hope to hear more views before investing more.
Thanks v much.
Cheers.
would like to seek your views on Philippines real estate. Has anyone bought real estate there? I am very excited with the developments in Philippines - low base, improvement in political stability, economy. I have made small investments there so far. Hope to hear more views before investing more.
Thanks v much.
Cheers.
It looks like a typical search engine start up.
Yes.
But they are rewarding 'members' with monetary benefits if they view advertisements or watch the videos.
In order to be members, you will need to pay $X.
Yes, it is getting hot. Did look at it but the disposal costs are rather high.
Felt that NZ properties are better given the comfort with the regulatory and legal structure. Also need to watch out for currency risks.
Stick to Ayala, CPG developers.
Otherwise, you can always buy their stock on P Stock Exchange.
Some search engines just ride on google search engine I.e. fakes. Boring to click on those advertisements. There r better ways to make money.
True. I always find MLMs quite tiring to maintain. Typically, I like to meet friends and acquaintances with no agenda, especially monetary ones.
Yes, 6% tax on sales value if sell after TOP. But only admin fees if sell before TOP. I am looking at at least 50% price increase at Malila bay area in a few years. Second large scale casino (city of dreams) opening mid 2014. 1-2 more casinos in a few years, talk of theme park... Sea front area. Psf now abt peso 145k per sqm (S$385psf). high end makati city up to 250k -300k per sqm?
Looking at a few friends who went into MLM, I think it is tougher work than they thought initially. Because of MLM, now we almost lost contact, as I find it tiring to listen to those talks. Now if I want to buy something interesting I just google to compare and buy online.
Can someone kindly let me know why Philippines is so attractive to investors?
The warlords' way
http://www.economist.com/node/15549053
YEARENDER: 2013 a year of major natural disasters
http://www.philstar.com/headlines/2013/12/26/1272092/yearender-2013-year-major-natural-disasters
They seem to center around the casino. To be sure there will be some uplifting effect. However I'm not too sure if you can walk out of the casino or sleep in the hotel safely after a big win. In Singapore the government gains a lot by taxing the casinos, but the lifting effect of casino on surrounding properties is not that much.
Many people forgot that Manila had the highest standard of living in the early 70s after Japan. They are enjoying a renaissance now!
I am still a little worried when I travel to Philippines especially when it comes to Chinese kidnappings and natural disasters.
But what is life without a little risk taking, right?
From the looks of it, I can see more investments pouring in if Aquino stays in power, the Muslim rebels are kept in check and China constantly be a menace in the sea routes.
My exact sentiments! Life should be more than just about making money from friends!
I always thought Philippine as a very dangerous place. They are doing okay as their people work overseas and remit money back. Recovering from natural disasters every year drains their finance. Casinos is a quick and dirty fix, like Singapore, when the government runs out of better ideas to power up the economy.
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