Singaporeans who sell their Malaysian properties will have to cough up more for higher real property gains tax (RPGT) from this year, but that did not seem to put off prospective buyers who turned up for a talk at the sales gallery of the latest Iskandar project to be launched in Singapore.
A reason offered by one of those attending the talk was that these properties are still cheaper than Singapore properties, with a 400 sq ft one-bedder going for around RM400,000 (S$156,000).
Another reason could be that loans from Malaysian banks for these properties can be generous. A loan package from CIMB Bank can offer as much as 85 per cent financing, depending on the applicant's income, savings and credit report.
Yesterday afternoon, around 40 interested buyers showed up at the East Coast Road gallery of China developer Guangzhou R&F Properties' 3,224-unit Princess Cove, units of which will go on sale next month.
Lawyer Wong Siow Hooi from Malaysian law firm Jal & Lim pointed out that the RPGT is now 30 per cent if a property is sold within five years and 5 per cent thereafter.
Mr Thomas Lim, 50, a retiree, is considering living in Iskandar and renting out his home in Singapore.
He said: "We are buying for the long term as my (24-year-old) son can also use it eventually."
He added: "Singapore property is so expensive that we have to look to overseas property as an alternative investment, and Iskandar property is still cheap."
This article was first published on July 7, 2014.
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