Developments in Johor could serve as warning for property market here

I refer to the letters “Lower stamp duty would make property market more lively” (Nov 23) and “Remove additional stamp duty for S’poreans to encourage investment here” (Nov 21).

We are lucky that our Government has not spared developers and investors from the Additional Buyer’s Stamp Duty.

Let us look at the report “Chinese property investors gamble S$143b on JB being next Shenzhen” (Nov 23).

Malaysian developers such as UEM Sunrise, Sunway and SP Setia are crying out because of Chinese developers such as Country Garden Holdings, which is building the US$100 billion (S$143 billion) Forest City to house 700,000 people.

According to Axis-Reit Managers head of investments Siva Shanker, a former president of the Malaysian Institute of Estate Agents, they “scare the hell out of everybody” and “God only knows who is going to buy all these units”.

Many projects in Johor are being sold by Chinese developers, including state-owned Greenland Group, and the influx has contributed to a drop in the value of Johor’s residential sales and to discounts of 20 per cent or more.

Mr Shanker is concerned because if the Johor market goes down, the rest of the country would follow. This would be a big problem for Malaysia in this economic downturn.

We do not want this type of investors in Singapore’s economy.