Malaysia Property Sees Five-Fold Hike in Chinese Interest
Malaysia’s real estate sector witnessed a five and a half times hike in Chinese investor interest.
Data from Juwai.com showed that Chinese buyer enquiries for properties in Malaysia soared 550 percent in the year to August 2016, making it 11th worldwide in Chinese buyer interest.
Views for Malaysian property listings also jumped 52.7 percent over the same period, with an average value of property searched for at US$224,000 (RM929,960).
According to Juwai.com chief executive officer Charles Pittar, China was Malaysia’s biggest source of inward investment last year across the board, not just in property. He noted that some of the investment in industry and development had positive spill-over effects in residential property.
“On top of the economic ties drawing the two companies closer together, Malaysia’s property sector is making a concerted effort to attract Chinese buyers. They are locating and designing projects to appeal to Chinese as well as locals, and they are marketing them in China. Despite the fast growth, Chinese buyers are still only a significant minority in the marketplace,” he said.
“For Chinese buyers, Malaysia is a nearby, easily accessible country with an appealing and very affordable housing market…Malaysia tends to attract buyers pursuing investment or lifestyle strategies, who have other family or commercial ties to the country or who simply cannot afford to purchase in a market like the US or Australia.”
Pittar said Malaysia’s real estate market is currently strong, with home prices up by 7.2 percent year-on-year.
“We think the outlook is good for the market, although it does face some headwinds.”
Juwai.com revealed that the Chinese buyer profile in Malaysia is different from that in Singapore, where 59 percent of buyers are motivated by education and 23 percent by investment.
In contrast, 54 percent of Chinese buyers in Malaysia are motivated by investment while only 15 percent by education.
Claiming to the top Chinese international property portal, Juwai.com has over two million monthly users and 2.85 million active listings as at 20 September 2016.