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SINGAPORE PROPERTY WEEKLY Issue 370
When the ruling party changes, everything project in the Johor State?
starts on a new page. Mahathir is showing the
Foreign buyers are at the mercy of policy
world that he is the pilot and makes the key
changes
decisions on takeoff and landing. You will
hear his initiative and decision from the Besides, the $100 billion Forest City mega
Malaysia local media. You must sit back and project is an easy target. It is a white elephant
wait for your turn to get any clarification or built for foreigners. Locals can hardly afford to
confirmation from the relevant authority. buy those homes and are unlikely to be
benefited by the luxury development.
Malaysia is only following the global trend to
restrict foreigners from buying properties in Mahathir once commented, “The Chinese
the country. It is also handy to leverage on coming in here, buying land, developing
the worldwide angst against the cash-rich luxurious towns, is not beneficial for us.”
Chinese by blaming Chinese buyers for rising Some media use strong words like
home prices. “crackdown” or “clampdown” to describe
Malaysia’s curb on foreign buyers in the
At a time when New Zealand bans foreigners
Iskandar project. Since when did foreigners
from buying existing properties; when
investing in overseas properties becomes a
Singapore just slapped a 25 percent
crime?
Additional Buyer Stamp Duty on foreigners
buying private homes, what is the big deal of When a government rolls out a grand
controlling the foreign ownership of only one development plan, the country welcomes
foreign direct investment and appreciates consulted, or to debate, object and protest.
foreign investors to inject huge capital, bring They are entirely at the mercy of the policy
in new technologies and create job makers.
opportunities.
Bad reputation is a big weakness in
But once the government decides to pull the negotiations
brakes, the country can interpret foreign
What is the bargaining power of a foreign
investment as an unscrupulous act to seize
developer like Country Garden in Malaysia?
land in other people’s country, deprive the
locals of their housing rights, and impose the The largest developer in China is running out
modern form of colonization. of luck recently in their country. On top of
frequent work accidents from tight completion
Regulations that restrict foreign property
deadlines, poor quality control is also a big
ownership can change from time to time, or
damage to Country Garden’s reputation.
even worse, change overnight with no notice.
Local governments can step in any time to A China property agent told the Hong Kong
turn the tables and change the rules of the media that he is afraid of accompanying
game. buyers of Country Garden projects to collect
keys. Because owners are often shocked by
Unlike the locals, overseas buyers and
the poor building quality and bad
foreign owners don’t have the rights to be
workmanship once they open the door.
There are incidents of collective actions of do have some spare cash to invest. The
owners to return the keys to the developer developer’s promise to help them apply for
and refuse to accept the units. The problem permanent resident status though Malaysia
also caused widespread protests in different My Second Home Programme was the best
parts of China. Reputation is another card answer. The developer’s plan to build
Mahathir is holding in his hands that he can international schools for their children is a
play any time. cheaper alternative for their children’s
education. The developer’s projection of
Selling the Chinese the dream of
700,000 residents by 2050 in a $100 billion
becoming an international citizen
project is the guarantee for a high return
Why are two-thirds of Forest City’s buyers overseas investment.
from China?
According to the Prime Minister’s Office,
Chinese buyers sold on the project are mainly purchase of properties does not guarantee
the middle class and SME owners. Like other automatic residency in the country. Only
Chinese nationals who are keen to leave the renewable multiple-entry social visit passes
country, they long for clean air, safe food, for 10 years will be issued to successful
western education and freedom. applicants through the Malaysia My Second
Yet they are not eligible to migrate to Western Home programme.
countries. They may lack the financial means In early August, the Shattuck St Mary’s
to migrate as investment immigrants. But they International School near Forest City opened.
Back to Contents Page | 6
SINGAPORE PROPERTY WEEKLY Issue 370
Non-Landed Residential Resale Property Transactions for the Week of Aug 27 – Aug 31