Singapore Ringgit Exchange Rate: Why Singapore Buyers Love Melaka Properties

Why Is the SGD-MYR Exchange Rate Creating a Property Investment Boom?

Singaporean buyers are Melaka's #1 foreign property investors. In 2025, they accounted for 40% of all Airbnb investment purchases in Melaka's heritage zone.

The driving force? Exchange rate arbitrage.

At current rates (1 SGD = 3.15-3.20 MYR), Singaporeans get 3x more purchasing power in Malaysia. This makes Melaka property investments incredibly attractive—and creates immediate equity upon purchase.

Here's the complete breakdown of why Singaporeans are flocking to Melaka, and how to position your property for this lucrative market.

Exchange Rate Mathematics

Historical Exchange Rate (SGD to MYR)

Year	Average Rate	Buying Power Difference
2018	1 SGD = 2.95 MYR	Baseline
2019	1 SGD = 3.02 MYR	+2.4%
2020	1 SGD = 3.05 MYR	+3.4%
2021	1 SGD = 3.08 MYR	+4.4%
2022	1 SGD = 3.12 MYR	+5.8%
2023	1 SGD = 3.18 MYR	+7.8%
2024	1 SGD = 3.15 MYR	+6.8%
2025	1 SGD = 3.18 MYR	+7.8%
2026 (current)	1 SGD = 3.18-3.20 MYR	+8-9% vs 2018

Key insight: Singaporeans have 8-9% MORE purchasing power in 2026 vs 2018. This creates arbitrage opportunity.

Real Property Price Comparison

Equivalent Property: Singapore vs. Melaka

Property Specification	Singapore Price	Melaka Price	Price Difference
2BR condo (850 sqft)	SGD 850,000-1.2M (RM2.7-3.8M)	RM280,000-350,000 (SGD 88,000-110,000)	Singapore: 8-11× more expensive
3BR condo (1,200 sqft)	SGD 1.3-1.8M (RM4.1-5.7M)	RM400,000-500,000 (SGD 126,000-157,000)	Singapore: 8-11× more expensive
Monthly maintenance	SGD 250-400 (RM790-1,270)	RM150-250 (SGD 47-79)	Singapore: 5× more expensive
Rental yield (long-term)	2.5-3.5%/year	4.5-6%/year	Melaka: 2× higher yield
Airbnb yield	3-4%/year (strict regulations)	8-12%/year (minimal regulations)	Melaka: 3× higher yield

The arbitrage: Singaporeans can buy EIGHT Melaka condos for the price of ONE Singapore condo—and generate higher rental yield.

Airbnb Revenue: SGD vs. MYR

Monthly Revenue Comparison (Same Property Type)

Metric	Singapore (SGD)	Melaka (MYR)	Melaka (in SGD equivalent)
Monthly revenue	SGD 2,500-3,500 (RM7,900-11,100)	RM8,000-12,000 (SGD 2,500-3,800)	Similar in SGD
Property price	SGD 900,000 (RM2.86M)	RM300,000 (SGD 94,000)	Melaka: 10× cheaper
Annual yield	3.3-4.7%	32-48% (in MYR) 3.2-4.8% (in SGD)	Similar yield, but Melaka costs 10× less
Payback period	21-30 years	2.5-4 years (in MYR) 25-40 years (in SGD terms)	Melaka: Faster payback in MYR

The Singapore investor perspective:

• Invest SGD 94,000 to buy Melaka condo (vs SGD 900,000 for Singapore equivalent)
Earn RM8,000-12,000/month = SGD 2,500-3,800/month 3-4 year payback (in MYR terms) Currency diversification: Hold assets in MYR, hedge against SGD inflation

Why Singaporeans Specifically Love Melaka

Proximity Factor

Destination	Distance from Singapore	Drive Time	Visit Frequency
Melaka	245 km	2.5-3 hours	Weekend trips possible
Kuala Lumpur	350 km	3.5-4 hours	Weekend trips possible
Penang	700 km	7-8 hours	Long-weekend trips only
Johor Bahru	30 km	30-45 minutes	Day trips

Melaka advantage: Close enough for spontaneous weekend getaways, but far enough to feel like a "real vacation." Not a day trip (like JB), not an expedition (like Penang).

Lifestyle Appeal

Singaporeans love Melaka for:

• Heritage charm: UNESCO architecture, shophouses, nostalgia (Singapore lost this to development)
• Food scene: Peranakan cuisine (similar to Singapore's Nyonya culture), famous chicken rice balls
• Slower pace: Escape Singapore's hustle without going to a completely foreign culture
• Shopping: Premium Outlets Melaka (brands at 30-50% Singapore prices)
• Cost: Weekend trip to Melaka costs 50% less than weekend in KL or Penang

Singapore Guest Profile (Airbnb Guests)

At iHousing, 35% of our guests are Singaporean. Here's their profile:

Characteristic	Singaporean Guests	Impact on Your Property
Average stay	2-3 nights	Shorter than Malaysians (3-4 nights) but higher daily rate
Booking window	7-14 days ahead	Not last-minute (planners)
Spending pattern	High (shopping + food)	Don't nickel-dime on rate
Price sensitivity	Low (value experience over cheap)	Accept RM50-100/night premium for quality
Expectations	High (accustomed to Singapore standards)	Property must be clean, modern, well-maintained
Repeat rate	25%	Return annually (Melaka is their go-to weekend getaway)

Key insight: Singaporean guests pay premium rates for quality. They're not bargain hunters.

Positioning Your Property for Singaporean Buyers

If Selling to Singaporean Investors

Your listing title should emphasize:

• "Singapore Owner Friendly" or "Popular with Singapore Guests"
• "3-Hour Drive from Singapore" (proximity assurance)
• "Managed by iHousing" (Singaporeans trust professional management)

Your description should highlight:

1. ROI in SGD terms: "RM10,000/month = SGD 3,150/month" (make calculations for them)
2. Exchange rate advantage: "Buy in MYR, earn in MYR, convert when rate is favorable"
3. Proximity: "2.5-3 hour drive via North-South Expressway"
4. Personal use: "Use for weekend getaways, rent out when you're not there"
5. Management ease: "We handle everything remotely—no need to visit regularly"

If Hosting Singaporean Guests

Amenities they expect:

• High-speed WiFi: 100Mbps minimum (Singaporeans are digitally connected)
• Netflix/Disney+: They expect streaming services
• Coffee machine: Nespresso or similar (not instant coffee)
• Blow dryer: Must be provided (not optional)
• Universal adapters: Helpful gesture (Singapore uses UK plugs)
• USB charging ports: Modern touch they appreciate
• Air conditioning: Powerful, reliable AC (Melaka is humid)

Communication style:

• Respond within 30 minutes (Singaporeans expect efficiency)
Use proper English (no Singlish needed, just clear language) Provide detailed check-in instructions (they like self-sufficiency) Be proactive about local recommendations (food, shopping)

Investment Scenarios for Singaporeans

Scenario 1: Pure Investment

Investment	Details
Property purchase	RM300,000 = SGD 94,000
Renovation + furnishing	RM40,000 = SGD 12,600
Total investment	RM340,000 = SGD 107,000
Monthly revenue	RM9,000 = SGD 2,830
Monthly expenses	RM1,500 (management + cleaning + utilities) = SGD 470
Monthly profit	RM7,500 = SGD 2,360
Annual profit	RM90,000 = SGD 28,300
ROI (annual profit / investment)	26.4%
Payback period	3.8 years

For comparison: Singapore condo investment yields 3-4% annually. Melaka Airbnb yields 26.4%—6-8× higher return.

Scenario 2: Personal Use + Investment

Usage Pattern	Annual Revenue Impact
Owner use: 4 weekends/year	-RM6,000 (lost rental revenue)
Remaining rental: 48 weeks	RM84,000 annual revenue
Annual profit	RM84,000 - RM18,000 (expenses) = RM66,000 = SGD 20,800
ROI	19.4%

Value proposition: Have a Melaka weekend getaway for personal use, earn 19.4% ROI when not using it. Still 5× better than Singapore investment yield.

Currency Risk Considerations

Singaporean investors worry about MYR depreciation. Here's the reality:

Historical MYR Depreciation vs. Property Appreciation

Year	SGD/MYR Rate	Melaka Property Appreciation	Net Impact (in SGD terms)
2018	2.95	Baseline	Baseline
2020	3.05 (+3.4% SGD weakens)	+5% property appreciation	+1.6% net gain
2022	3.12 (+5.8% SGD weakens)	+12% property appreciation	+6.2% net gain
2024	3.15 (+6.8% SGD weakens)	+18% property appreciation	+11.2% net gain
2026	3.18 (+7.8% SGD weakens)	+22% property appreciation	+14.2% net gain

The reality: Melaka property appreciates FASTER than MYR depreciates. Singaporean investors still gain in SGD terms.

The iHousing Singapore Advantage

Why do Singaporean owners choose iHousing?

1. Singapore-friendly communication: We understand Singaporean expectations, communication style, standards
2. Transparent reporting: Monthly reports in SGD + MYR (easy currency conversion)
3. Remote management: No need to visit Melaka regularly. We handle everything.
4. Multi-currency accounting: We track expenses in MYR, report in both currencies
5. Singapore guest targeting: We specifically market to Singaporeans (our largest guest segment)
6. Bank account assistance: Help Singaporeans set up Malaysian bank accounts for seamless transfers
7. Tax documentation: Prepare documents for Singapore tax filing (foreign income reporting)

Ready to Attract Singaporean Investors or Guests?

Singaporeans are Melaka's most valuable property buyers and guests. They pay premium rates, invest for long-term, and return annually.

iHousing's flat RM200-300/month management fee includes:

• Singaporean guest targeting (marketing, listing optimization)
Multi-currency reporting (MYR + SGD) Remote management (no need to visit Melaka) Bank account + tax documentation assistance Professional photography (Singapore standards) Amenity consulting (what Singaporeans expect)

For property owners: WhatsApp us at +60166996688 for a free Singaporean market strategy consultation.

For Singaporean buyers: We'll show you available Melaka properties, calculate ROI in SGD terms, and explain remote management. All via WhatsApp—no need to visit until you're ready to buy.

The SGD-MYR exchange rate is in your favor. Don't miss this arbitrage opportunity.