Restrictions on Foreign Property Investors
Property prices in Asia have been receiving the increase over these last few years. This scenario was evident regardless of the Asian financial meltdown in 1997 as well as the near missed global recession in 2008.
Here are some from the cooling measures governments had put in place to tackle this sensitive issue of providing affordable housing for their own citizens.
Allow us to first have a look at land scare Singapore, a clear hotspot considering her small size, political stability and attractive demographic. Foreign institutional and retail investors from around the world as a long way away as USA, Canada, Europe, Middle East, and neighbouring countries like India, China, Indonesia and Malaysia are flocking to this island state to snatch up the private properties.
Prices for leasehold condominiums located in the sub-urban area can easily cost $1 million. To retard the escalating property prices and to pacify the outcry from your citizens, the Singapore government reacted swiftly using these latest teams of cooling measures, effective 1 December 2011.
1) Foreign investors will probably be put through a 10% stamp duty besides the current 3% of the property price.
2) Permanent Residents buying their 2nd or even more property is going to be subjected to an additional 3% stamp duty in the current 3%.
3) Singaporeans buying their 3rd or more property will be exposed to the extra 3% stamp duty.
Real-estate prices have gone up so much that some analysts within this island state are expecting prices to fall by as much as 20~30% from end 2012 to 2013. But that being said, this can be exposed to the cost-effective developments via U.S, Europe and China.
Next, let us look at Malaysia. The united states is separated into two portions by the sea. Peninsular Malaysia lies south of Thailand, and it is bordered on the west from the Strait of Malacca. Over the South China Sea are Malaysia's eastern states of Sabah and Sarawak.
Malaysia is really a relatively large country and thinly populated. The greatest concentration of property investment is within the capital. Contrary to Singapore, there aren't any restrictions on foreigners owning landed properties, though foreign investors are put through the next pair of regulations.
1) A foreign-owned levy 11,000 Malaysian Ringgit
2) Minimum property prices are 500,000 Malaysian Ringgit
3) Not allowed to own Malay reserved land
4) Come to grips with no more than 2 properties only (If you have intention to have a third property, application for approval has to be submitted to Foreign Investment Committee with the Economic Planning Unit on the Prime Minister's Department).
The latest project situated on the southern section of the country is anticipated to be the next economic power state for your country having its closeness to Singapore. The Malaysian government had already invested millions of dollars in to the progression of this project and is anticipated to spend millions more, taking into consideration the sheer size and economic significance of the area.