glenj
February 14th, 2005, 05:36 PM
Business Times - 14 Feb 2005
S'pore buyers snap up M'sia property
Brisk sale at launch of posh KL landed homes
By SIOW LI SEN
(SINGAPORE) Singaporeans' love affair with Malaysian property is running hot again. After interest seemed to fade in 2003, it's back with a vengeance.
High rental returns, easy affordability and strong sentiment are attracting Singapore buyers in droves.
Buyers during a weekend launch here last month of the posh Kiara Hills - dubbed the 'Beverley Hills of Kuala Lumpur' - snapped up the landed homes with gusto despite their hefty price tags of RM1.9 million to RM5.5 million (S$825,000-S$2.4 million).
'We did RM19.2 million of sales during the three-day event,' said an executive of marketing agent Colliers International.
The latest data from Bank Negara Malaysia shows that funds from Singapore for purchases of real estate in Malaysia in the first nine months of 2004 rocketed to RM123 million - three times more than the RM40 million for the whole of 2003.
In 2002, Singapore bought RM119 million of Malaysian real estate.
And when Singaporeans go for real estate up north, they seem to do so in a big way.
It's not uncommon to find them with several properties.
Take retiree Chu Hung. He has a penthouse by the sea in Malacca, a unit on Fraser's Hill and a three-bedroom condominium in Kuala Lumpur.
'I bought in Malaysia for enjoyment and buy Singapore for investment,' says Mr Chu. 'Living cost in Malaysia is low, food is good and people are friendly.'
The only place in Malaysia he's not too fond of is Kuala Lumpur, and that's the property he may consider selling even though the rental return is more than 10 per cent.
He keeps his other two Malaysian properties empty for visits.
The monthly rent for his 1,000 sq feet unit in Jalan Guerney Dua, Kuala Lumpur, is RM1,500, against a current market value of about RM170,000.
Pollie Sim, who heads personal financial services at Maybank Singapore, said the bank's Malaysian property financing has increased 50 per cent in the past six months.
Maybank Singapore is providing finance for Kiara Hills and Marc Residences, another upmarket property development in Kuala Lumpur where the first block sold out before advertising had even started.
Ms Sim said Maybank Singapore has seen a steady increase in customer requests to open Maybank ringgit-deposit accounts - called Premier 1 in Malaysia - since mid-2004.
To facilitate the flow of funds, Maybank last month launched a new instant funds transfer service to Malaysia that gives recipients immediate access to the funds.
While Singaporeans are buying real estate in Malaysia, loans from Singapore to Malaysia have dropped significantly, probably as a result of strong liquidity in the banking system over the Causeway.
The Bank Negara data shows loans from Singapore in January-September 2004 totalled RM1.732 billion, compared with RM5.564 billion for the whole of 2003.
Borrowing by Malaysian companies from Singapore is coming off for several reasons, including the fact that Malaysian banks are flush with funds and probably able to edge out foreign lenders, said a KL source.
'Malaysian companies are also raising more funds through the stock market,' the source said.
S'pore buyers snap up M'sia property
Brisk sale at launch of posh KL landed homes
By SIOW LI SEN
(SINGAPORE) Singaporeans' love affair with Malaysian property is running hot again. After interest seemed to fade in 2003, it's back with a vengeance.
High rental returns, easy affordability and strong sentiment are attracting Singapore buyers in droves.
Buyers during a weekend launch here last month of the posh Kiara Hills - dubbed the 'Beverley Hills of Kuala Lumpur' - snapped up the landed homes with gusto despite their hefty price tags of RM1.9 million to RM5.5 million (S$825,000-S$2.4 million).
'We did RM19.2 million of sales during the three-day event,' said an executive of marketing agent Colliers International.
The latest data from Bank Negara Malaysia shows that funds from Singapore for purchases of real estate in Malaysia in the first nine months of 2004 rocketed to RM123 million - three times more than the RM40 million for the whole of 2003.
In 2002, Singapore bought RM119 million of Malaysian real estate.
And when Singaporeans go for real estate up north, they seem to do so in a big way.
It's not uncommon to find them with several properties.
Take retiree Chu Hung. He has a penthouse by the sea in Malacca, a unit on Fraser's Hill and a three-bedroom condominium in Kuala Lumpur.
'I bought in Malaysia for enjoyment and buy Singapore for investment,' says Mr Chu. 'Living cost in Malaysia is low, food is good and people are friendly.'
The only place in Malaysia he's not too fond of is Kuala Lumpur, and that's the property he may consider selling even though the rental return is more than 10 per cent.
He keeps his other two Malaysian properties empty for visits.
The monthly rent for his 1,000 sq feet unit in Jalan Guerney Dua, Kuala Lumpur, is RM1,500, against a current market value of about RM170,000.
Pollie Sim, who heads personal financial services at Maybank Singapore, said the bank's Malaysian property financing has increased 50 per cent in the past six months.
Maybank Singapore is providing finance for Kiara Hills and Marc Residences, another upmarket property development in Kuala Lumpur where the first block sold out before advertising had even started.
Ms Sim said Maybank Singapore has seen a steady increase in customer requests to open Maybank ringgit-deposit accounts - called Premier 1 in Malaysia - since mid-2004.
To facilitate the flow of funds, Maybank last month launched a new instant funds transfer service to Malaysia that gives recipients immediate access to the funds.
While Singaporeans are buying real estate in Malaysia, loans from Singapore to Malaysia have dropped significantly, probably as a result of strong liquidity in the banking system over the Causeway.
The Bank Negara data shows loans from Singapore in January-September 2004 totalled RM1.732 billion, compared with RM5.564 billion for the whole of 2003.
Borrowing by Malaysian companies from Singapore is coming off for several reasons, including the fact that Malaysian banks are flush with funds and probably able to edge out foreign lenders, said a KL source.
'Malaysian companies are also raising more funds through the stock market,' the source said.