Residents of JCube Residence Jurong East will actively benefit from the convenience of the JRL. This added convenience will further enhance the vibrancy of the neighbourhood and bolster property values in the area.

With the Singapore government’s recent announcement of an increase in Additional Buyers Stamp Duty (ABSD) rates to promote a sustainable property market, foreigners have been hit the hardest, with the rate doubling to 60%. Singaporeans and Permanent Residents (PRs) are not exempt, but their increase is less severe.

For Singaporeans buying their second property, the ABSD has been raised by 3%, to 20%, while those buying their third and subsequent property are taxed at 30%, an increase from the previous 25%. For PRs, those buying their second property will be taxed 30%, up from 25%, and those buying their third and on property will be taxed at 35%, up from 30%.

Originating from 2011 to manage property demand and cool the housing market, the ABSD has been revised upward in 2013, 2018, and 2021. It is based on the profile of the buyer at the time of purchasing the property, and the number of residential properties already owned, including ones held in trust. If jointly purchased by two or more buyers with different profiles, the highest ABSD rate will apply to the whole value of the property.

What does this mean for Malaysia? For a foreigner buying a Singapore property at a market value of S$2 million (RM6.7 million), they would now have to pay S$1.2 million in ABSD alone, without factoring in other costs. On its own, that money could have funded a luxury real estate buy in Johor or other parts of Malaysia. However, unfortunately, the prospect of cheaper living costs in Malaysia has not led to an influx of buyers from Singapore.

Safety is a major factor when it comes to real estate investments, and Malaysia has a long list of “must-dos” to attract foreign buyers, such as improving connectivity between the two nations, reducing unnecessary red tape, and increasing security and preventing crime. Quality property management is also key, as investors may not be in their units 24/7, and need assurance that their property is in top condition. Responsible developers must design and build properties for sustainable property management from the start, and top-notch property managers must be made available.

Singapore’s ABSD hike is an opportunity for Malaysia, and how much the country can take advantage of it depends on how quickly and seriously it can address and action the stated needs.