Singaporeans who have been contemplating about a piece of property in Iskandar should enter the market soon, to pay the extra 4-5% is simply a waste if a decision is already in the pipeline. However this imposed tax will hardly dampen the price increase long term due to the cross strait economic ties & interactions. On micro scale developers can easily do a 4% mark up and rebate the amount. Current year on year capital appreciation in Iskandar is more than 4% and seasoned investors would recognize this. Furthermore this hardly matches up to the cooling measures enforced in Singapore. Johor state clearly understands this and is tapping the market for income. If the additional tax is channeled back into infrastructure, crime prevention, public transportation etc, it will further boost the quality of living, regional standings and overall attractiveness of Iskandar.
No one can tell the future we can only wait for the state to enforce the additional tax and see how the market reacts. Enjoy Iskandar!
Actual News Here (Link):
PASIR GUDANG: The state government will unveil a new policy on foreign buyers of commercial and residential properties here in a bid to control property prices and foreign ownership by the end of the year or early next year.
State Housing and Local Government Committee chairman Datuk Abdul Latiff Bandi told reporters here after launching the two-day Green Industrial 2013 seminar at Amansari Residence Resort here today that foreigners will be imposed a four to five per cent tax based on the value of the property.
"Currently foreign owners have to pay a one-off RM10,000 levy regardless of the price of the property," Abdul Latiff said.
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