Today, Minister Lawrence Wong & the Monetary Authority of Singapore (MAS) warned about the potential risks of property oversupply overseas. This comes after the various news reports about the Iskandar Malaysia and Maybank’s warning about it.
Min Wong stated that an oversupply of properties could lead to investments losing their value. In addition, it will be harder to find tenants due to the oversupply. Mr Wong noted that there were around 336,000 new private residential units coming into the property market in Malaysia and that is more than the number of private homes in Singapore. He added that buyers are getting more cautious but not all Singapore buyers have recognised the risk involved.
So, take if you are looking into buying a house overseas, just be careful when deciding on buying the property.
Top picture from iproperty.com.my