Malaysia is experiencing a significant increase in interest from Chinese nationals for luxury homes, driven by attractive investment opportunities and a thriving education sector. Prime locations in Kuala Lumpur, such as the Central Business District (CBD), Bukit Damansara, Bangsar, and Kenny Hills, are now at the forefront of this trend.
Real estate firms have reported that the interest in Malaysian properties from Chinese buyers surged throughout 2024. This includes properties priced at RM1 million (S$300,000) and above, which are becoming increasingly popular among affluent Chinese investors. According to Juwai IQI, a leading global proptech firm, this figure is nearly double the average price of new apartments in Malaysia, which stands at RM582,887.
Rising Interest from Chinese Buyers
Kashif Ansari, CEO of Juwai IQI, told The Straits Times that inquiries from Chinese buyers increased by 42% in the first quarter of 2024 compared to the previous quarter. This surge in inquiries has directly translated into increased purchases. Ansari said, “The 42 per cent increase in inquiries by Chinese buyers resulted in a similar increase in buyers purchasing homes.”
Chinese buyers now make up the largest segment of foreign purchasers in Malaysia, focusing on high-end properties in Kuala Lumpur and Johor, with a price range of up to RM2 million. Despite global trends of Chinese investors offloading overseas properties due to rising mortgage costs and a slowing economy in China, Malaysia’s property market remains strong and appealing to these investors.
Malaysia My Second Home (MM2H) Scheme Revamp
One key factor boosting demand is the revamp of the Malaysia My Second Home (MM2H) residency visa scheme. Introduced in June 2024, the new requirements stipulate that foreign residents must purchase property, further driving interest in the country’s real estate sector. Malaysia’s revamped MM2H programme offers foreign investors the ability to reside in the country by acquiring property, making it an attractive proposition for Chinese buyers seeking a stable environment for long-term investments and residence.
The revamped MM2H policy has made Malaysia the second most popular Southeast Asian destination for Chinese real estate buyers, surpassing its previous third-place ranking in 2022.
Luxury Property Market in Focus
High-end properties are particularly in demand, with transactions involving properties priced above RM4 million seeing significant growth. Zerin Properties CEO Previn Singhe told The Straits Times that luxury property transactions increased by 20% in the first half of 2024 compared to the second half of 2023. “Malaysia’s stable government, heightened economic activity, and the diversity of various races are enticing buyers from China and the UK to live with their families in the multicultural society,” Previn added.
Educational Opportunities and Increased Workforce
The surge in Chinese buyers isn’t limited to the property sector. Malaysia’s Education Ministry reported a 35% increase in the number of Chinese students enrolled in higher education institutions in 2023, reaching 44,043 students. This growing interest in Malaysian education further cements the country’s reputation as a prime destination for Chinese nationals seeking high-quality education for their children.
In addition to students, the number of Chinese executives and employees working in Malaysia has skyrocketed. The report noted that Chinese professionals in the country have quadrupled, increasing from 10,000 in 2021 to approximately 45,000 in 2024. This influx is contributing to the increasing demand for residential properties, particularly in urban areas like Kuala Lumpur, where many Chinese expatriates choose to settle with their families.
Surge in Chinese Tourism
Tourism from China has also surged, particularly after Malaysia introduced visa-free travel for Chinese citizens in December 2023. This policy has led to an influx of Chinese visitors, with 1.1 million tourists arriving in Malaysia during the first five months of 2024 alone. Many of these tourists have expressed interest in exploring property investment opportunities, further driving the demand for luxury homes.
Conclusion
Malaysia’s property market is thriving, fueled by rising demand from Chinese nationals seeking both investment and lifestyle opportunities. With its stable government, favorable economic conditions, and appealing visa schemes like MM2H, Malaysia is well-positioned to attract further investments from Chinese buyers, particularly in prime real estate areas such as Kuala Lumpur and Johor.
The growing number of Chinese nationals settling in Malaysia for work and education, coupled with increased tourism, is expected to keep demand for luxury properties high. As Malaysia continues to offer attractive conditions for foreign investors, the trend of rising inquiries from Chinese nationals is likely to persist, solidifying the country’s status as a key destination for luxury real estate investments in Southeast Asia.
