The on-going Covid-19 pandemic has led to Chinese investors ramping up cross-border property investments as they have more money in their pockets now that they would otherwise have spent on pricey vacations.
According to Juwai IQI Group co-founder and chief executive officer Kashif Ansari, Chinese cross-border buying enquiries could increase by 20 per cent to 40 per cent this Chinese New Year over the previous year.
Kashif said this year, Beijing is encouraging its citizens to stay home and not travel as they contain a wave of coronavirus infections.
"More than 22 million people have been told to stay indoors, and travel is discouraged across most of the country. Only about half as many people were affected last January during the Wuhan lockdown. Many of the wealthiest cities, including Beijing and Shanghai, have told their citizens not to travel.
"We are expecting more property buying enquiries than we have been planning for, simply because so many people will be at home and have money in the bank that they would otherwise have spent on pricey vacations," he said.
Kashif said Juwai IQI's own data reveals that, from 2015 to 2020, Chinese acquirers purchased more than US$202.8 billion of overseas residential real estate.
According to American think-tank data, from 2005 to 2020, Chinese cross-border commercial real estate investment totalled no less than US$104.8 billion.
"China is entering 2021 with a partial lockdown, just like 2020, but this time China is better prepared than any other country on earth. We believe Chinese economic growth will hit 8.2 per cent this year, but that retail sales and services will lag behind the general recovery," he said.
"Consumption is on hold with many consumers, and those who still have their jobs and income in many cases have told us they decided to use the money they might otherwise have frittered away to purchase real estate. That's one reason home prices in mainland China Tier 1 cities are soaring, and it's also driving overseas buying during the holiday."
Developers launching attractive packages to entice buyers
Kashif said developers like EXSIM Group and Agile Real Estate Development Sdn Bhd have launched attractive packages in conjunction with Chinese New Year.
He advised Malaysians to take advantage of their respective packages, coupled with the current historic low-interest rates and homeownership incentives to get into the property market.
EXSIM Group is running a campaign until the first day of Chinese New Year and purchasers who make a booking during this period stand a chance to spin the wheel and win up to RM9,999.
It's head of corporate communications, Michelle Siew said purchasers are guaranteed to win at least RM7,999.
"Once you place a deposit, you are entitled to spin the wheel and see which prize you have won. Buyers located in China can appoint a local agent to spin the wheel on their behalf and we live stream it for them, so they can feel the suspense and the joy. This campaign is targeted at potential customers who are looking for a new home at Millerz Square @ Old Klang Road," she said.
Siew said the wheel can land on any of these three prizes - RM9,999, RM8,999, or RM7,999.
Millerz Square @ Old Klang Road is EXSIM Group's flagship mixed-development.
The developer has recreated a modern industrial ambiance with the mix-use of materials and components from the old mills.
"This adds a distinct character into the new-age designs. The name Millerz came as naturally as this place was once the location for large industrial mill buildings. We were inspired to preserve the rich historical elements so that part of its story could live on through Millerz Square's architecture," she said.
Siew said the development offers an incomparable urban space, ideal for modern families, working professionals, corporates, socialities, first-time buyers, long-stay accommodation, and investors.
The RM1.68 billion development comprises serviced apartments, an office suite tower, premium residences, service suites, retail and commercial offices.
Siew said foreigners will be able to buy the serviced apartments as there are some priced from RM1.008 million.
Construction is in progress and the expected completion date is sometime next year.
b>1% extra discount during Chinese New Year
Agile Real Estate business development manager Stanley Leong said the company is offering an extra one per cent discount to homebuyers during its Chinese New Year campaign which ends on February 28.
The offer is for the company's Agile Bukit Bintang project in Kuala Lumpur.
The project has a total of 1,501 units, priced between RM1.1 million and RM1.6 million (units ranging from 617 sq ft to 1,157 sq ft).
Agile Embassy Garden at Jalan Ampang, Kuala Lumpur is another project by the developer.
This project offers 1,296 units, ranging from RM992,000 to RM1.65 million (built-up from 554 sq ft to 1,005 sq ft).