More Chinese nationals looking to buy high-end homes in Malaysia

Country’s relative political stability, strong economic growth draw interest

- Zunaira Saieed

Malaysia is seeing a surge in Chinese nationals inquiring about multimillion-ringgit luxury homes, with investment and education opportunities driving their interest.

Several real estate firms told The Straits Times that 2024 has seen more people from China looking to buy homes, especially in Kuala Lumpur's prime areas such as the Central Business District and leafy suburbs, including Bukit Damansara, Bangsar and Kenny Hills.

Malaysia's relative political stability and anticipated stronger economic growth compared with a year ago have made it an attractive destination for wealthy Chinese, the firms noted, especially with other countries clamping down on education and business avenues for foreigners.

Industry players said luxury residential property usually refers to units priced at RM1 million (S$300,000) and above. This is nearly twice the average price of a new apartment, which now stands at RM582,887, according to data released by global proptech firm Juwai IQI in its residential sales market report for Malaysia's first quarter of 2024.

Every year, Juwai IQI receives thousands of inquiries from potential foreign buyers. And in the first quarter of 2024, the number of inquiries from Chinese buyers rose by 42 per cent from the preceding quarter, said its chief executive officer, Mr Kashif Ansari.

"The 42 per cent increase in inquiries by Chinese buyers resulted in a similar increase in buyers purchasing homes. They made up the largest segment of foreign buyers in Malaysia, who are generally looking to buy either landed or high-rise apartments, mainly in Kuala Lumpur and Johor, of up to RM2 million," Mr Kashif told ST.

He declined to reveal the actual figures of inquiries and homes sold.

It was reported in 2023 that a growing number of Chinese investors were offloading their overseas properties due to higher mortgage payments driven by rising global interest rates and slowdown in China's economy.