Malaysia is experiencing a notable surge in interest from Chinese nationals seeking luxury properties, driven by investment opportunities and educational pursuits.
With increasing inquiries noticed by real estate firms, 2024 is shaping up to be a significant year, especially for properties located in prime areas like Kuala Lumpur's Central Business District, Bukit Damansara, Bangsar, and Kenny Hills.
According to Juwai IQI, luxury residential properties, priced at RM1 million (S$300,000) and above, are highly sought after.
This price point is almost double the average cost of new apartments, which stands at RM582,887, as noted by the global property technology firm.
Kashif Ansari, the CEO of Juwai IQI, stated there’s been a 42 percent increase in inquiries from Chinese buyers during the first quarter of 2024 compared to the previous quarter.
He emphasized, "The 42 percent increase in inquiries by Chinese buyers resulted in a similar increase in buyers purchasing homes."
Current trends show Chinese buyers now represent the largest segment of foreign purchasers, particularly interested in properties across Kuala Lumpur and Johor priced up to RM2 million.
Even as many Chinese investors are offloading properties overseas due to rising mortgage costs and economic fluctuations back home, the appeal of Malaysian real estate remains strong.
The situation has been positively influenced by the recent overhaul of the Malaysia My Second Home (MM2H) visa scheme, which now requires foreign residents to purchase real estate, effectively boosting demand.
Reports indicate Malaysia has quickly climbed to become the second most sought-after destination for Chinese real estate buyers, overtaking its previous rank of third in 2022.
Previn Singhe, CEO of Zerin Properties, shared insights noting, "We’ve seen a significant uptick in transactions involving luxury properties valued above RM4 million, with approximately 20 percent growth observed from the first half of 2024 compared to the second half of 2023."
He attributes Malaysia's stable government, increased economic activity, and its rich multicultural society as major factors enticing buyers from China and the UK.
This burgeoning Chinese presence isn't limited to real estate alone.
According to Malaysia’s Education Ministry, there was a remarkable 35 percent increase in Chinese students enrolling in higher education institutions, bringing the total to 44,043.
It’s noteworthy too, as the number of Chinese executives and employees working in Malaysia has skyrocketed from 10,000 in 2021 to around 45,000 today.
This surge has coincided with the introduction of visa-free travel for Chinese citizens effective December 2023, resulting in over 1.1 million Chinese tourists visiting Malaysia within the first five months of 2024.
