As a consequence of Singapore’s recent decision to double property taxes for non-residents, analysts predict that over the next year, foreign buyers in Malaysia would climb by around 15%.
To counteract the price increases brought on by the influx of high-end purchasers from outside and to ensure that housing remains affordable for locals, Singapore has increased its tax on foreigners buying homes from 30% to 60%. According to a statement released by Normanton Park, Normanton Park Pricing by Juwai IQI, a worldwide leader in real estate technology, the change would attract more wealthy international purchasers to Malaysia, notably the states of Johor, Kuala Lumpur, and Selangor.
“Most of these uprooted buyers will seek property worth RM2mil or above,” it said.
Kashif Ansari, co-founder, and group chief executive officer of Juwai IQI, believes the higher levies would bring a large influx of international purchasers to Malaysia.
Malaysia stands to gain significantly from the new tax system.
When asked how many foreign buyers Malaysia could support, he said, “Malaysia is a much larger country with multiple metro property markets that are each comparable in size with Singapore’s entire home market.”
Ansari said that many Singaporean companies and family offices had holdings in Malaysia. — Bernama
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