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Different requirement in 4 countries for housing purchase.

2020-07-08
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Summary:Requirement of 4 popular investment destination countries in Southeast for housing purchase.

As we all know, the Southeast Asian real estate market is favored by investors. Most of the projects are meet the needs of overseas buyers. It is very convenient to rent out and sell decorated small size apartments. Ordinary people with spare money could buy a small apartment to rent out.

But it is worth noting that the Southeast Asian market has developed for a certain time, housing prices in many countries have become unreasonable, with emerging markets are rising, and capital requirement of investor has changed.

The capital requirement for overseas property purchases should not only consider local housing prices, but also combine policies to understand the restrictions to make sure you are eligible to buy a house. Today, I will introduce capital requirement for the four most popular investment countries in Southeast Asia. Which countries could meet your demand?


Thailand 

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Thailand's tourism industry is developed, the economy is active, the population of key cities is gathered densely, and the housing market is popular. Thailand's new project market is mainly concentrated in the key tourist cities of Bangkok and Pattaya and Chiang Mai.

Bangkok is an international metropolis with strong demand for investment. Apartments are suitable for living or rent out. The facilities are well equipped and the housing development is mature. Therefore, housing prices in Bangkok are not cheap. The unit price of new project in the business district is more than 6,000 US dollars per square meter and there are also tens of thousands of US dollars, even more than the domestic North, Guangzhou and Shenzhen. The newly developed area has apartments of around US$2,000-3,000per square meter, and the price range is large. In Pattaya and Chiang Mai, housing prices are cheap, with unit prices around 1500-3000 US dollars per square meter.

Foreign purchase restrictions:

Foreigners can buy apartments in Thailand without any restrictions and enjoy freehold property rights. However, 51% of the property rights of the entire apartment building must be hold by Thai citizens. Foreigners can only buy up to 49% of the apartments.

Foreigners cannot purchase Thai land in their own name, so they cannot buy villas.


Singapore 

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Singapore is the most developed country in Southeast Asia, with high real estate value and high housing prices. Due to limited land resources, Singapore's new projects are few compared to other countries, and the unit price is generally above 10,000 US dollars. The unit price of some projects exceeds 20,000 US dollars per square meter. In addition, foreigners are required to pay a 3% stamp tax and an15% stamp tax (ABSD) for foreign investors. The stamp tax alone is subject to 18%, which is expensive. Therefore, the capital requirement for Singapore's property purchase is high. Generally, investors will not choose invest in housing here and the investment is not cost-effective.

Foreign purchase restrictions:

Singapore houses are divided into government HDBs, private apartments and villas. Foreign investors (non-permanent residents) are able to purchase all apartments (including all apartments in 1999, 999 and permanent land), as well as exceed 5 floors of landed houses, but not HDBs, entire apartment projects, vacant residential land, and landed houses with less than 5 floors. (Sentosa Island is the only exception, foreigners can apply for the purchase of land and landed houses.)


Cambodia

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Cambodia is a new emerging market, its economy development level and maturity of real estate market may behind of Thailand and Singapore, even the housing price.

The Cambodian real estate market is dominated by new developments. The development of new project is mainly concentrated in Phnom Penh and Sihanoukville. Other provinces and cities have a small number of town houses and villas for sale. The unit price range of new projects in Cambodia is between 1200 and 3800 US dollars per square meter, the average apartment is about 2000 US dollars, and the unit price of more than 3000 US dollars per square usually belongs to high-end office buildings or high-end apartment products. Overall, Cambodia is still affordable housing market in Southeast Asia, and ordinary people can start with affordable price.

Foreign purchase restrictions:

There is no restriction on the purchase of new project in Cambodia. Foreigners can buy a unit of new project as long as they have a passport. Foreigners can buy new project with the same property rights certificate as their own nationals and enjoy freehold residency. They can also buy and sell freely. The new project purchase policy is loose.

The only purchase restriction: Cambodian policy stipulates that foreigners cannot purchase land and landed villas in Cambodia in their own name, so foreigners cannot buy houses on the first floor and can only hold property rights above the second floor, only building property rights will be registered, without land property rights. Property rights with land certificates are limited to purchase by Cambodians.


Malaysia

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Malaysia’s national house price pattern is clear. Kuala Lumpur has the highest house price, with a unit price of US$2,000-8,000 per square meter, which is 2 to 3 times the national average price, far exceeding other states and cities. Selangor, Sabah, Sarawak and Penang ranked second, while the remaining states ranked third, with a larger price range.

Foreign purchase restrictions:

The Malaysian government does not have a loan or purchase restriction policy. However, in order to protect the interests of locals, the government requires foreign buyers to only purchase real estate of more than 1 million ringgit (RMB 1.64 million). The state’s bottom line requirements for this policy vary, but there are certain funding requirements.


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