Singapore’s property insurance business is gearing up to launch its overseas coverage for foreign buyers.
The Singaporean insurance company Aeon is set to launch the new insurance scheme for foreign owners of luxury homes in a city known for its high rents.
Aeon is planning to launch coverage in the capital Kuala Lumpur, the home of Malaysia’s rich and famous.
It plans to offer coverage for property in the Greater Singapore and Greater Johor markets.
Aneon is also setting up a joint venture with an insurance company in Singapore, according to a report in the Straits Times.
The deal will allow Singaporeans to buy insurance for overseas property in Malaysia, the Singapore Herald reported.
The new scheme will also cover the acquisition of properties by Malaysians who want to move to Singapore.
According to the Straights Times, Aeon plans to launch a trial program to cover properties in the Malaysian capital of Kuala Lumpur for an undisclosed amount of money.
The Malaysian property market is already experiencing a surge in luxury homes as Singaporean buyers look for lower-priced accommodation.
In January, Singapore’s Prime Minister Lee Hsien Loong promised that the country would boost foreign investment in the luxury property market by introducing a new foreign-buyer visa system.
The government’s new move comes as Singapore is in the midst of a housing boom as buyers seek cheaper accommodation options in the nation’s booming cities and suburbs.
The luxury market has been hit hard by the global financial crisis.
The market is expected to recover this year as more investors invest in the country.
In March, Singapore surpassed Hong Kong in terms of the number of luxury apartment units in Singapore.