Taking advantage of the weaker ringgit that declined 2.7 percent in the past year, more Singaporeans are buying properties in Malaysia.
Based on the figures from Malaysia Property Inc, an agency that promotes the country's real estate abroad, showed that total transaction value of property had increased 28 percent from RM107.4 billion in 2010 to RM137.8 billion in 2011, of which two percent accounted for foreign investments.
Local agents have also increased their efforts to attract Singaporeans to invest in Malaysian property through heavy advertising, road trips and roadshows.
According to Propnex, Singaporeans have purchased around 50 units in the second quarter of the year, doubling purchases in the first quarter.
Peter Lim, Head of Leisure Farm Singapore, said that over the past two months Singaporeans acquired 35 units in Johor's Iskandar region, up from only a dozen in the first two months last year.
"The weakening Malaysian ringgit, the lure of owning landed property and familiarity with the country are reasons they (Singaporeans) cite for looking north," wrote the daily.
The capital of Kuala Lumpur continues to be appealing yet Singaporean investors are more attracted with Johor particularly in Iskandar region.
On the other hand, Malaysia Property Inc has recorded that foreigners made up only four percent of the property transactions in Johor for purchases above RM1 million in 1H2010 period alone.
"In the corresponding period last year, however, that figure shot up to 25 percent," added the report.
"Much of the demand has been generated by the buzz over the Iskandar region, earmarked by the Malaysian government as a major growth area for the country."
Aside from Johor, many Singaporeans are also venturing up north in Malaysia, watching for potential investments in Kuala Lumpur, Penang and Malacca.
"The weakening of the ringgit against the Singapore dollar is expected to further stimulate demand. It has fallen by 2.7 percent in the past year to reach a 14-year low against the Singapore dollar."
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