More foreigners are expected to acquire property in Malaysia this year, on the back of the lower floor price threshold for foreigners.
In fact, a Juwai IQI survey showed that 80% of real estate agents are anticipating more foreign buyers in the next 12 months versus a year ago, reported The Malaysian Reserve.
Polling over 300 real estate agents, the survey was conducted from 3 November to 21 November 2019.
“With the lower threshold for foreigners to purchase property effective this year, we foresee a strong increase in demand for property from foreign buyers,” said Juwai IQI Group ED Kashif Ansari.
The areas expected to see the highest number of foreign property buyers are Kuala Lumpur, Perak, Sarawak and Selangor. Respondents, on the other hand, expects Pahang and Melaka to see lesser take-up from such group of buyers.
On this year’s property outlook, Ansari expects Malaysia to remain within the radar of global investors, on the back of its economic, political and infrastructure stability.
“For 2020, we believe the market will remain resilient. The current economic climate and historical data speak for a rebound in Malaysia’s real estate market throughout 2020,” he said.
Given the industry’s upward trajectory, the glut within the property market is anticipated to be well-managed throughout the year.
“Malaysia has opened its doors to many foreigners who have called Malaysia their second home. The introduction of Malaysia My Second Home (MM2H) Scheme has positioned the country as one of the most foreign-friendly countries in South-East Asia for real estate investors,” he said.
“According to the Ministry of Tourism Arts and Culture, a total of 9,439 applications were received from July 2018 to Nov 20 last year. Out of which, 4,487 applications have been approved.”
MM2H attracted 43,466 applications from 131 countries, mostly from China, since its launch in 2002 until November 2018.
In 2018, Chinese buyers accounted for RM8.4 billion of Malaysia’s property sales or 12.1% of total transaction value.