Chart of the Day: Almost 3 in 4 Singaporeans don’t plan to invest in Iskandar

A mere 8% are interested.

Malaysia remains to be the top preferred property investment location among Singaporeans, but recent policy changes have shunned foreign buyers.

According to a survey by iProperty, other Malaysian states including Kuala Lumpur, Malacca and Penang have also targeted Singaporean investors, offering up these locations as viable options to investors who are interested in Malaysia. Zone A (Johor Bahru City) and Zone B (Nusajaya) are the two favourites for property purchase in Iskandar Malaysia.

Launched in 2006 with five flagship zones, Iskandar Malaysia was meant to rejuvenate Johor Baru, which over the years had turned into a affordable market for Singaporeans. But the market has cooled down in 2014 after the Malaysian Government revised the Real Property Gains Tax and ruled that foreigners could only buy property worth RM1 million and above.

Most respondents would consider purchasing property in Iskandar Malaysia if policy changes in favour of foreign buyers and properties are value-for-money. The median price of a 5-room public flat in Ang Mo Kio, one of the most popular residential towns, is approximately SGD635,000. Hence, at such prices, some Singaporeans will find properties in Iskandar Malaysia attractively priced. According to data from Malaysia’s National Property Information Centre (NAPIC), the average residential value of Johor property has risen by about 45% from MYR136,034 in 2009 to MYR197,147 in 2012. In comparison, the average residential value for the whole of Malaysia only increased by 30% during the same period.

Here’s more from iProperty:

To Singaporean respondents, the top three reasons to purchase Iskandar Malaysia are: 1. Affordable property prices 2. Enhanced connectivity by 2018 via the RTS Network 3. Confirmation of the Nusajaya High Speed Rail (HSR) stop Greater congestion at the Singapore-Johor border crossing and higher toll rates are cramping growth in Iskandar Malaysia and stopping it from making a real difference in the lives of those staying in Johor. Ever since toll rates at the Causeway went up In October 2014, a Singapore car on a round trip to Johor Baru has to pay SGD12.80 in toll charges. Hence, the enhanced connectivity via the RTS Network and HSR is seen as a positive move.