It’s been more than two weeks since the latest property cooling measures in Singapore. Since then, there has been mixed expectations and reactions towards the future of the property market.

A recent article by Channel New Asia (“Prices of luxury properties not expected to crash after latest measures: analysts”, 18 Jan 2013) reported that there has been an increasing number of sales caveats lodged by Mainland Chinese buyers. This is due to our luxury home prices still being cheaper than those in Hong Kong, a traditional property investment market for the Chinese.

Like Singapore, the Hong Kong government is intervening to combat rising housing prices. Within a year after Singapore introduced an Additional Buyer’s Stamp Duty (ABSD) of 10%, Hong Kong followed with a similar 15% tax on top of existing stamp duties for non-local buyers. Three months later, Singapore caught up and increased the ABSD to 15% for foreigners.

As the governments of two of Asia’s safest havens introduced measures to curb demand, they have also strived to increase the supply of housing to ease the market. On 29 Jan 2013, the National Population and Talent Division announced plans for 700,000 more homes by 2030. In Hong Kong, Chief Executive Leung made a pledge in his 2013 policy address to increase long term land supply and housing.

In the meantime, anti-speculation measures in these countries, might lead neighbouring countries to see increasing real estate activity in the near future.

Gavin Tee from Swhengtee International Real Estate Investors Club shared in a recent seminar that the current economic climate presents a “golden decade for property investors” in Malaysia. This is especially since there are government-led initiative to developed various economic belts within peninsula Malaysia.

Besides Malaysia, regional investors are likely to turn towards nearer markets like Thailand. A few days ago, the Bangkok Post reported that holiday destinations like Chiang Mai are attracting foreign investors with as high as a 20% projected capital gains.

Today’s globalised world has allowed funds to flow across borders easily, giving investors a plethora of opportunities. Therefore, government actions also have spillover effects on neighbouring countries. Developing economies thus provide a more welcoming entry for investors, as they offer a higher rate of return compared to developed economies.