Malaysia is currently witnessing a surge in luxury property demand from Chinese citizens. This year alone, demand for properties in upscale areas like Bukit Damansara has skyrocketed. According to The Straits Times, education and business opportunities are the main attractions for Chinese investors.
A stable political environment and promising economic growth are key factors driving this interest. Additionally, increasingly restrictive policies in neighboring countries towards foreign businesses and education have also spurred interest in luxury properties in Malaysia.
Price Does Not Matter
Residential units priced above RM1 million, categorized as luxury properties, are particularly popular among buyers. This figure is significantly higher than the average price of new apartments, which currently stands at RM582,887, as reported in Juwai IQI’s property market report for the first quarter of 2024.
According to data from Juwai IQI, interest from Chinese property buyers in Malaysia saw a significant rise in the first quarter of 2024. Kashif Ansari, CEO of Juwai IQI, mentioned that inquiries from prospective Chinese buyers increased by 42% compared to the previous quarter, and this increase has been matched by a rise in transaction numbers. He also noted that Chinese buyers typically seek landed homes or apartments in areas like Kuala Lumpur and Johor Bahru, with prices reaching up to RM2 million.
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Malaysia Becomes Chinese Property Investment Magnet
While Chinese investors globally tend to sell off properties due to rising interest rates and an economic slowdown, their interest in Malaysian properties has grown. The revitalization of the Malaysia My Second Home program in June 2023 and Malaysia’s position as the second most popular property investment destination in Southeast Asia for Chinese citizens have contributed to this trend.
In June, the Malaysian government overhauled the Malaysia My Second Home visa scheme, now requiring foreign nationals to purchase property in the country. This move elevated Malaysia from third place in 2022 to the second most popular destination in Southeast Asia for Chinese real estate buyers, according to a Juwai IQI report from early 2024.
However, despite the implementation of this visa scheme, Malaysia restricts foreign property purchases to the real estate market priced above RM1 million to protect local residents.
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A Wave of Expansion
The number of Chinese citizens in Malaysia has sharply increased as many come to study or work. In 2023, there were 44,043 Chinese students, up 35% from 2021, while the number of Chinese executives and employees in Chinese companies in Malaysia also quadrupled, reaching around 45,000.
Since the introduction of visa-free travel in December 2023, Chinese tourist visits have also surged, with 1.1 million visitors in the first five months of 2024. This figure is notably higher than the 1.4 million Chinese visitors throughout 2023 up until August 13, 2024.
