China is Malaysia’s Biggest Property Investor

March 28, 2017

 

China has emerged as the biggest investor in the Malaysian property market, accounting for 46 percent of total real estate investment in the last three years, reported Todayonline.

A Cushman & Wakefield report showed that Chinese companies, primarily developers, invested around S$2.6 billion (RM8.2 billion) in Malaysia from 2014 to 2016, surpassing Singapore’s S$1.6 billion (RM5 billion) investment.

In fact, the Chinese invested around S$2.7 billion (RM8.55 billion) during the peak of Iskandar’s development boom in 2013.

“While the variety of options in a globalised real estate market, as well as a desire to diversify, could have shifted Singapore investments, there is no denying that this is similar to what has been seen around the world — Chinese capital is shaking up the marketplace,” said Sigrid Zialcita, managing director for Asia Pacific Research at Cushman & Wakefield.

“However, since last year, there has been a notable shift of Chinese investments into economic projects that will deliver longer-term benefits to the Malaysian economy.”

China Railway, for instance, jointly acquired with Johor-based Iskandar Waterfront Holdings a 60 percent stake in the Bandar Malaysia project from 1Malaysia Development Berhad for S$2.3 billion (RM7.3 billion), making it one of the largest land transaction in the country.

Several Chinese multinational firms also plan to base their regional operations in Malaysia. Late last year, Huawei Technologies opened its regional headquarters in Kuala Lumpur, while Alibaba Group reportedly eyes to set up a logistic centre in Iskandar as well as a regional distribution hub in KLIA Aeropolis.

“Significant investments from Chinese companies have filled a crucial link in fuelling Malaysia’s economic vision,” said Zialcita.

“The Malaysian government, since 2010, has unveiled several initiatives to propel the country up the income ladder…These projects will continue to lend viability to future plans as it develops critical infrastructure and foster commercial activities. We expect real estate values to benefit from the government’s sustained efforts to raise the level of economic development and income in the country.”

Separately, South China Morning Post reported that the number of Chinese nationals relocating to Malaysia has been on the uptrend.

In what it calls as the “third wave” of Chinese migration, the report revealed that nearly 8,000 Chinese nationals emigrated to the country under the Malaysia My Second Home Programme from 2002 to 2016, or about 25 percent of foreigners granted residency under said programme.

Among projects by China’s investors and developers:

1. Sovereign Bay, Permas Jaya

2. Le Nouvel, Jalan Ampang

3. R and F Princess Cove Phase 1 Residence, Johor Bahru

 

Image sourced from FMT

 

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my

 

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