KUALA LUMPUR – Malaysia is seeing a surge in Chinese nationals inquiring about multimillion-ringgit luxury homes, with investment and education opportunities driving their interest.
Several real estate firms told The Straits Times that 2024 has seen more people from China looking to buy homes, especially in Kuala Lumpur’s prime areas such as the Central Business District and leafy suburbs, including Bukit Damansara, Bangsar and Kenny Hills.
Malaysia’s relative political stability and anticipated stronger economic growth compared with a year ago have made it an attractive destination for wealthy Chinese, the firms noted, especially with other countries clamping down on education and business avenues for foreigners.
Industry players said luxury residential property usually refers to units priced at RM1 million (S$300,000) and above. This is nearly twice the average price of a new apartment, which now stands at RM582,887, according to data released by global proptech firm Juwai IQI in its residential sales market report for Malaysia’s first quarter of 2024.
Every year, Juwai IQI receives thousands of inquiries from potential foreign buyers. And in the first quarter of 2024, the number of inquiries from Chinese buyers rose by 42 per cent from the preceding quarter, said its chief executive officer, Mr Kashif Ansari.
“The 42 per cent increase in inquiries by Chinese buyers resulted in a similar increase in buyers purchasing homes. They made up the largest segment of foreign buyers in Malaysia, who are generally looking to buy either landed or high-rise apartments, mainly in Kuala Lumpur and Johor, of up to RM2 million,” Mr Kashif told ST. He declined to reveal the actual figures of inquiries and homes sold, saying that it was proprietary information.
It was reported in 2023 that a growing number of Chinese investors were offloading their overseas properties due to higher mortgage payments driven by rising global interest rates and slowdown in China’s economy.
However, Mr Kashif said there is still a large number of Chinese citizens looking to buy property in Malaysia.
A revamp of the Malaysia My Second Home (MM2H) residency visa scheme in June has also made it compulsory for foreign residents to buy property in the country.
Malaysia has become the second most popular South-east Asian destination for Chinese real estate buyers, up from third place in 2022, said Juwai IQI in early 2024. Thailand is in the top spot.
In general, Malaysia allows foreigners to buy property only in the upper tiers of the real estate market priced at RM1 million and above, to ensure that locals are not priced out of the market.
But some Chinese nationals have been eyeing properties way above this price range.
Zerin Properties chief executive officer Previn Singhe, whose firm mainly deals with high-net worth individuals, said his company recorded a significant uptick in foreign high-net worth individuals buying luxury properties valued above RM4 million, with an estimated 20 per cent increase in transactions in the first half of 2024 compared to the second half of 2023.
“Malaysia’s stable government, heightened economic activity, and the diversity of various races are enticing buyers from China and UK to live with their families in the multicultural society,” Mr Previn told ST.
He said that China and British buyers make up the largest segment of foreign buyers of luxury properties sold by his firm, and there are also wealthy individuals from India looking to buy high-end homes as they are relocating their businesses to Malaysia.
These buyers are generally looking for high-end condominium units and landed houses with above 4,000 sq ft of built-up space worth more than RM4 million.