KUALA LUMPUR: Prime areas in Kuala Lumpur in the Central Business District, Bukit Damansara, Bangsar, and Kenny Hills, are now on the radar of Chinese buyers.
Chinese nationals are increasingly inquiring about luxury homes in Malaysia, driven by investment and educational opportunities.
Malaysia's stable political climate and improving economic outlook have made it a more attractive destination for wealthy Chinese investors, said real estate firms.
Luxury properties are typically priced at RM1 million (S$300,000) and above, nearly twice the average price of new apartments, which is RM582,887, says Juwai IQI's residential sales report for Malaysia's first quarter of 2024.
The firm reported a 42 per cent increase in inquiries from Chinese buyers, resulting in a similar rise in purchases, as reported by Straits Times.
Chinese buyers are now the largest group of foreign investors in Malaysia, focusing on properties in Kuala Lumpur and Johor priced up to RM2 million.
Despite a trend in 2023 of Chinese investors selling overseas properties due to rising mortgage rates and a slowing economy, many continue to seek properties in Malaysia.
The recent overhaul of the Malaysia My Second Home (MM2H) visa scheme, which requires foreign residents to buy property, has further increased interest.
Juwai IQI notes that Malaysia has become the second most popular Southeast Asian destination for Chinese real estate buyers, up from third place in 2022. Thailand remains the top choice.
Malaysia generally allows foreigners to buy only higher-priced properties—RM1 million and above—to prevent local buyers from being priced out.
However, some Chinese buyers are targeting even more expensive properties.
Zerin Properties has observed a notable rise in high-net-worth individuals buying luxury homes valued above RM4 million, with transactions up about 20 percent in the first half of 2024 compared to the last half of 2023.
A stable government, lively economy, and multicultural environment are attracting buyers from China, the UK, and India, who are relocating their businesses to Malaysia.
These buyers are mainly looking for high-end condominiums and large houses priced above RM4 million.
The number of Chinese nationals living in Malaysia has also increased due to more students and professionals moving there.
Additionally, visa-free travel between China and Malaysia, introduced in December 2023, has led to more Chinese tourists.
In the first five months of 2024, 1.1 million Chinese visited Malaysia, compared to 1.4 million for all of 2023, creating a growing interest in short-term holiday rentals from Chinese clients.