China’s biggest overseas property website believes that Chinese investments in Malaysia’s housing market could increase by two-fold by 2025, reported the New Straits Times.
“It is not unrealistic… the Credit Suisse Global Wealth 2016 report shows that there are now 1.6 million US dollar millionaires in mainland China. Because of their prosperity, these individuals dominate the buying of international property,” said Carrie Law, CEO of Juwai.Com.
In fact, Chinese buyers are sitting on about A$13 trillion (RM39.26 trillion) of assets compared to approximately A$5.3 trillion in 2011. Wealth per adult in China also surged by four times in the last six years, with real estate accounting for 53 percent of the assets.
Moreover, average monthly views in Juwai.Com for Malaysian properties rose 21.3 percent in 1H 2017 compared to a 3.7 percent gain in 1H 2016. Property enquiries also increased by over three times since 2015, with a median enquiry price of US$235,000 (RM918,850) as of the first quarter of last year.
According to website users, they were seeking Malaysian properties in 1H 2017 due to emigration (3.7 percent), education (9.9 percent), own use (58.5 percent) and investment (65.4 percent).
“They are purchasing for their own use, including for the purposes of housing their children who are studying abroad in Malaysia,” noted Law.
Malaysia also enticed more buyers from China versus other Southeast Asian markets. Compared to the global average, the country received more property investments from China.
“In the case of Malaysia, if macro market and regulatory conditions remain positive, the global trends discussed above will drive growing China investment in local property,” said Law.
She added that houses are the most favoured assets for Chinese overseas investors. As a matter of fact, 71.6 percent of this group have dwellings in other countries. Furthermore, over 60 percent of them plan to invest more in offshore real estate by 2020.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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