Malaysia hotspot for rich property investors from China

The Sun

03-05-2025

PETALING JAYA: Malaysia's luxury property market is attracting interest from Chinese high-net-worth individuals, with momentum expected to accelerate into 2025 and beyond.
The country now ranks fourth, behind Thailand, Australia and Canada, as a major destination for affluent Chinese buyers seeking upscale homes priced from RM22 million and above.
Universiti Teknologi Malaysia Property Economics and Finance associate professor Dr Muhammad Najib Razali said Malaysia's solid economic fundamentals, including steady GDP growth, robust domestic consumption and a dynamic services sector, make it an increasingly appealing investment haven.
'Infrastructure development is another major driver supporting the optimistic outlook. Projects like the Tun Razak Exchange, set to be Southeast Asia's next financial hub, and ongoing upgrades to transport networks and urban amenities are transforming Kuala Lumpur into a more competitive global city.'
He said the proposed high-speed rail link to Singapore, once finalised, would significantly enhance regional integration and boost demand in Kuala Lumpur and southern Johor.
Muhammad Najib said Malaysia's luxury real estate offers some of the best value in Asia.
'In Kuala Lumpur, luxury condos average between RM1,900 and RM3,800 per sq ft, with the most premium developments reaching RM5,700, still considerably lower than in cities like Singapore or Hong Kong.'
For example, RM4.75 million can secure a 1,500 to 2,000sq ft property in Kuala Lumpur as opposed to a 400 to 500sq ft one in Hong Kong.
He said the country's strong education sector is another major pull factor.
'With over 44,000 Chinese students currently enrolled in Malaysian institutions, families often invest in property near education hubs such as Mont Kiara and Subang Jaya.
'These buyers see real estate not only as housing but also as a long-term asset tied to accessible, globally-recognised education.'
He said demand is particularly high in prime locations such as Kuala Lumpur City Centre, Bangsar, Bukit Damansara and Kenny Hills where luxury condos, villas and gated communities match the expectations of international buyers.
Muhammad Najib said property agents specialising in the luxury segment have reported not only rising enquiry volumes but also higher conversion rates, with more enquiries turning into purchases.
'In fact, we're seeing group viewings, multiple families or investor circles travelling together, making swift decisions when properties tick all the boxes.'
High-rise condominiums and serviced residences have emerged as firm favourites among wealthy Chinese.
He said while Kuala Lumpur remains the primary focus, interest is also growing in Johor Bahru, especially in large-scale projects like Forest City.
'They view Malaysia's luxury property market as a 'buy low now, appreciate later' opportunity. The country's global profile is rising with megaprojects, and the value proposition here is hard to beat compared
with other Asian cities.'
He said government incentives have also helped fuel interest, particularly the Malaysia My Second Home (MM2H) programme, which despite tighter conditions, continues to offer long-term residency.
'Malaysia's property ownership laws are relatively foreigner-friendly. Freehold titles are available in many projects, unlike in Thailand or Indonesia, where rules are more restrictive.
'Although the revised MM2H requirements, such as a RM40,000 monthly income and RM1 million fixed deposit, initially deterred some, they've since positioned Malaysia as a premium option for serious investors seeking a stable second home.'