Chinese buyers are increasingly focusing on prime areas in Kuala Lumpur, such as the Central Business District, Bukit Damansara, Bangsar, and Kenny Hills, for luxury homes. Driven by investment opportunities and the appeal of educational prospects, more Chinese nationals are turning their attention to Malaysia as a prime real estate destination.

Real estate firms highlight that Malaysia's stable political environment and improving economy are significant factors attracting wealthy Chinese investors.

Chinese nationals have now become the largest group of foreign investors in Malaysia. According to Juwai IQI’s report for the first quarter of 2024, there is a strong demand for luxury properties priced at RM1 million (S$300,000) and above, nearly double the average price of new apartments in the country, which stands at around RM582,887.

Key highlights from the report include:

• A 42% increase in inquiries from Chinese buyers.
• Chinese nationals are now the largest group of foreign investors in Malaysia.
• Focus areas include properties in Kuala Lumpur and Johor priced up to RM2 million.

Despite challenges such as rising mortgage rates and a slowing economy in 2023, many Chinese investors remain keen on Malaysia. Recent changes to the Malaysia My Second Home (MM2H) visa program, which requires foreign residents to purchase property, have further fueled this interest.

Malaysia’s appeal to Chinese buyers has grown, making it the second most popular Southeast Asian destination for Chinese property buyers, up from third place in 2022. While Thailand remains the top choice, there is growing interest in luxury homes priced above RM4 million.

Typically, foreigners can only purchase properties priced at RM1 million and above in Malaysia to protect local buyers. However, some Chinese buyers are setting their sights even higher. Zerin Properties reports a significant increase in the purchase of luxury homes valued at over RM4 million, with transactions up 20 percent in the first half of 2024 compared to the last half of 2023.

The factors attracting these buyers include:

• A stable government
• A strong economy
• A rich multicultural environment

These attributes are not only drawing Chinese buyers but also investors from the UK and India, many of whom are relocating their businesses to Malaysia. They are primarily interested in high-end condos and large houses priced above RM4 million.

The number of Chinese nationals living in Malaysia is also on the rise, with more students and professionals moving there. Additionally, the introduction of visa-free travel between China and Malaysia in December 2023 has led to an increase in Chinese tourists.

Tourism and short-term rentals have also seen a boost:

• 1.1 million Chinese tourists visited Malaysia in the first five months of 2024.
• This compares to 1.4 million visitors for the entirety of 2023.
• There is a growing demand for short-term holiday rentals among Chinese visitors.