Chinese buyers account for RM8.4B in Malaysian property sales

KUALA LUMPUR (Bernama) – Chinese buyers accounted for RM8.4 billion worth of property sales in 2018, which is 12.1 per cent of the total transaction value and 0.4 per cent of total transaction share, according to an economics report from Chinese international property portal, Juwai.com, and Malaysian real estate agency network, IQI Global.

The report said Chinese buyers drove a significant multiplier effect as the impact of their investment spread to other sectors, such as retail, hospitality, manufacturing, banking, insurance, and transportation.

“There is a real debate in Malaysia about whether foreign investment is good or bad for the country. We wanted to find out for sure, so we put our researchers on the task.

“It turns out that foreign property buyers have a positive economic impact that goes well beyond the purchase price they pay and also well beyond the related taxes and fees,” IQI Global group chief executive officer Kashif Ansari.

He said Malaysia is not the only country that is vigorously debating the benefits of foreign real estate buyers.

“What makes Malaysia special is that it has a very vigorous and effective regime of policies that direct foreign buying into those parts of the property market that most benefit the country.

“In the United States (US), for example, there are virtually no restrictions on offshore buyers,” he said.

However, he said the government of Malaysia has much more control over foreign property buyers than does the government in the US and many other countries.

Juwai.com Executive Chairman Georg Chmiel said the Chinese made 16.5 per cent more enquiries on Malaysian property in the third quarter of this year than in the same quarter of 2018.

He said buying enquiries had declined from their peak in the first quarter of this year but remained above the average level in 2018.

“In the first half of 2019, Malaysia was the fifth most popular country for Chinese property buying enquiries in the world,” he said.

However, he said in terms of the total Chinese property investment value, Malaysia ranked lower with Thailand, Japan, Australia, and Canada all ranked ahead of Malaysia as the four most popular destinations for Chinese buyers.