Property News · October 10, 2016

Chinese interest in Malaysian property increased five-fold this year


But why now?
View of Penang from The Kek Lok Si Temple. Puripat Lertpunyaroj/Shutterstock
Chinese buyer enquiries for properties in Malaysia soared 550 percent in the year to August 2016, with views of properties listed online flew 52.7 percent Juwai.com reported.
“For Chinese buyers, Malaysia is a nearby, easily accessible country with an appealing and very affordable housing market,” Charles Pittar, Chief Executive Officer of Juwai.com, explained to OPP.Today. “Money invested there is perceived to be at greater risk than it would be in a larger economy like the US or Australia. 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. Unlike, say the UK, Malaysia does not attract many buyers motivated by education.”
Real estate players in Malaysia are well aware of such interest and 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,” Pittar reported.
More: 10 reasons why you should invest in Iskandar Malaysia
While speculation motivates the Chinese to buy property in Malaysia, the reverse is true in neighbouring Singapore, Juwai.com data showed. Investment drove 54 percent of Chinese buyers to acquire Malaysian properties, while education drove 59 percent to snap up Singaporean properties. Only 15 percent of Chinese buyers in Malaysia are driven by education, while 23 percent of buyers in Singapore are driven by investment.
In Malaysia, the Chinese are also shifting serious cash, with the average value of property searches hovering at USD224,000. “China was the biggest source of inward investment to Malaysia last year across the board, not just in property,” Pittar said. “Some of the investment in industry and development has positive spill-over effects for residential property.”
Even so, Chinese buyers make up only a significant minority in the Malaysian marketplace. Malaysia ranks only 11th worlwide on Juwai.com for Chinese buyer interest.
Read next: Inside Malaysia’s efforts to weather a lethargic property market

Source : property-report.com
Read more…Chinese interest in Malaysian property increased five-fold this year

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