Foreign investors in South-East Asia are being blamed– and subsequently charged– for the rising prices in property markets, making it difficult for locals to buy.
Singapore recently initiated a tax increase for foreigners buying property in the island nation. The government said it was a ‘cooling measure’ to deter a market bubble and rising prices.
Hong Kong and India also have similar taxes imposed specifically for foreign buyers, and now, Malaysia is the latest to follow suit.
Foreign investment is blamed for the rising prices in many South-East Asian countries and other parts of the world, and is said to be the reason why locals are increasingly unable to afford to buy properties in their own countries.
The tax hikes are in part by way of a higher Stamp Duty tax, and apply especially to foreigners with more than one property. The measure is said to be temporary, however.
Who buys where?
In Singapore, the proportion of prime, new-build property purchased by foreigners is 25%. In Hong Kong, it’s around 50%. Meanwhile, all the way over in London, foreigners make up between 50-70% of purchases.