Chinese buyers are now setting their sights on prime areas in Kuala Lumpur, including the Central Business District, Bukit Damansara, Bangsar, and Kenny Hills, for luxury homes.
Driven by investment and education opportunities, more Chinese nationals are looking to Malaysia as their next real estate destination.
Real estate firms point out that Malaysia’s stable political scene and improving economy are key reasons why wealthy Chinese investors are showing increased interest.
Chinese nationals are now the largest group of foreign investors in Malaysia
According to Juwai IQI‘s report for the first quarter of 2024, luxury properties priced at RM1 million (S$300,000) and above are in demand. These homes are nearly double the average price of new apartments in Malaysia, which is around RM582,887.
Here are some key highlights from the report:
- 42% increase in inquiries from Chinese buyers.
- Chinese nationals are now the largest group of foreign investors in Malaysia.
- Focus areas: Properties in Kuala Lumpur and Johor priced up to RM2 million.
Despite challenges like rising mortgage rates and a slowing economy in 2023, many Chinese investors are still keen on Malaysia. The recent changes to the Malaysia My Second Home (MM2H) visa program, which requires foreign residents to buy property, have further boosted interest.
Malaysia’s popularity among Chinese buyers:
- Now the 2nd most popular Southeast Asian destination for Chinese property buyers (up from 3rd in 2022).
- Thailand remains the top choice.
Interested in luxury homes above RM4 million
Typically, foreigners can only purchase properties priced at RM1 million and above in Malaysia to protect local buyers.
However, some Chinese buyers are aiming even higher. Zerin Properties has seen a significant increase in the purchase of luxury homes valued at over RM4 million, with transactions up 20 percent in the first half of 2024 compared to the last half of 2023.
The factors attracting these buyers include:
- Stable government
- Strong economy
- Rich multicultural environment
These attributes are not only drawing Chinese buyers but also investors from the UK and India, many of whom are relocating their businesses to Malaysia. They are mostly interested in high-end condos and large houses priced above RM4 million.
The number of Chinese nationals living in Malaysia is also on the rise as more students and professionals move there. Additionally, the introduction of visa-free travel between China and Malaysia in December 2023 has led to an increase in Chinese tourists.
Tourism and short-term rentals:
- 1.1 million Chinese tourists visited Malaysia in the first five months of 2024.
- This compares to 1.4 million visitors for the whole of 2023.
- Growing demand for short-term holiday rentals among Chinese visitors.
