KUALA LUMPUR: Malaysia is the third most popular destination for Singaporean buyers, accounting for 13.2 per cent of their purchase enquiries this year.
According to Juwai IQI co-founder and group chief executive officer Kashif Ansari, Malaysia is a sensible option for real estate investors due to its close proximity and economic connections with Singapore.
He said that the new Singapore Rapid Transit (RTS) project, which will move 10,000 people per hour between the two nations, is more than halfway completed and will likely lead to a rise in the number of Singaporeans who work in the city-state and have first or second homes in Johor Bahru.
According to him, IQI, the agency network that is a member of Juwai IQI, saw a 17 per cent increase in Singapore buyer transactions in Johor Bahru in the first quarter of 2023, compared to the same period the previous year.
"The global focus has been on Chinese buyers for the past decade and a half, but buyers from Singapore have been active for longer. While the total international residential real estate investment out of Singapore isn't comparable to the total from China, it still far outpaces any other country when you consider Singapore's small size," Kashif said.
According to Kashif, there are a number of reasons why Singapore is among the top buyers of foreign real estate globally, but the main ones are a cultural predilection for real estate investment and a wealth of capital.
"Singapore is a small country with a constrained domestic market, high levels of wealth, and an international outlook. When Singaporean investors purchase overseas residential real estate, they are usually seeking to diversify their investments, take advantage of Singapore's strong dollar, avoid higher transaction costs at home, provide housing for their children who are studying abroad, or obtain second homes for retirement and holidays," he said.
Kashif said that the top destination for Singaporean homebuyers looking to buy overseas is Australia, followed by Thailand.
Japan and the United Kingdom come next in the rankings. The ranking is based on data on enquiries made by property buyers located in Singapore between January 2020 and November 2023.
According to Kashif, Australia is also the top destination for millionaires worldwide.
In 2023, about 5,200 millionaires moved to Australia. That compares to 4,500 who moved to the United Arab Emirates and 2,100 who moved to the United States, according to data from Henley & Partners.
"Australia tops the list, receiving 27.5 per cent of all outbound residential property enquiries from Singapore. This significant share reflects Australia's popularity among Singaporean investors, due to factors such as cultural ties, educational opportunities, a stable real estate market, lifestyle, and proximity. The city of Perth, on Australia's West Coast, is just five hours and 10 minutes by flight from Singapore.
"Singaporean buyers don't find Australia's foreign buyer restrictions too onerous. Offshore buyers are limited to off-the-plan properties in the country, but Singaporeans often find new projects the most attractive product on the market. And permanent residents may purchase on the same terms as an Australian citizen," he said.
Kashif said that because Singapore buyers tend to have ample cash, they have an advantage in a market like Australia, where mortgage rates are high.
In the financial years 2022 and 2023, Singapore buyers acquired AU$300 million (US$199 million) of residential real estate in Australia.
"They bought more Australian residential property than did buyers from much larger countries, including India, Indonesia, the United Kingdom, and Malaysia," Kashif said.