Restrictions on foreign property investors

Property prices in Asia had been on the rise during these few years and have even climbed higher than before the Asian financial crisis in 1997 and the near missed global recession in 2008. Here's what the various government had been doing to tackle this sensitive issue of providing affordable housing for their own citizens.

Let's take a look at land scare Singapore, obviously a hotspot considering its small size. Investors from as far as USA, Canada, Europe, Middle East, India, China, Malaysia and Indonesia are flocking to this island state to snatch up the private properties. Prices for a condominium located in the sub-urban area can easily cost S$1 million or more now. From Dec 2011, the latest cooling measures were quickly put in place by the Singapore government.
1) Foreign investors will be subjected to a 10% stamp duty in addition to the current 3% of the property price.
2) Permanent Residents buying their 2nd or more property will be subjected to an additional 3% stamp duty from the current 3%.
3) Singaporeans buying their 3rd or more property will also be subjected to the additional 3% stamp duty as PR.
Private property prices had gone up so high that some analysts in this island state are expecting prices to fall by as much as 20~30% from end 2012 to 2013. This shall depends very much on the economic development in the U.S and Europe.

Next we shall look at Malaysia. It is a divided country, cut into two portions by the sea. Peninsular Malaysia lies south of Thailand, and is bordered on the west by the Strait of Malacca. Across the South China Sea are Malaysia's eastern states of Sabah and Sarawak. As you can see Malaysia is quite a large country and relatively thinly populated. The highest concentration of property investment is in Kuala Lumpur, the capital. There are no restrictions on foreigners owning landed properties unlike its neighbour Singapore. However foreign investors are subjected to the following:
1) Levy of RM11,000
2) Minimum property price is RM500,000.
3)  Not permitted to own Malay reserved land
4) Own up to maximum 2 properties (If there is intention to own a 3rd property, you need to apply to the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department)

The Iskandar Malaysia project located on the southern part of the country is expected to be the next economic power state for the country with its close proximity to Singapore. The Malaysian government had already invested hundreds of millions to the development of this project and will be expected to pumped billions considering the sheer size of the area.