Malaysia is becoming the darling of Chinese developers
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Mar 12, 2014 - PropertyGuru.com.my
Malaysia is becoming the darling of Chinese developers as mainland investors are put off by market restrictions in Singapore and Hong Kong and bet billions on cheaper housing as well as higher returns in the Southeast Asian country, media reports said.
Chinese state-owned developer Greenland Group invested US$3.3 billion (RM10.8 billion) in two residential and hotel projects in Malaysia this month.
Its smaller peers – Guangzhou R&F Properties Co Ltd, Country Garden Holdings Co Ltd and Agile Property Holdings Ltd – have invested a total of US$2.7 billion (RM8.87 billion) in Malaysia over the last two years.
Real estate consultant Savills noted that Chinese institutional and retail investors invested a total of US$1.9 billion (RM6.2 billion) into Malaysia’s real estate sector in 2013, surpassing the US$1.8 billion (RM5.9 billion) invested in Singapore, US$1 billion (RM3.3 billion) in Australia and US$867 million (RM2.8 billion) in Hong Kong. However, the figure lagged that invested in the United States and the UK.
Greenland's group chairman, Zhang Yuliang, said: “Malaysia hosts a vast Chinese community and has policies that attract foreign buyers so it has become a new investment destination.”
He added that the company invested in Malaysia due to its stable economic growth, established immigration policies and the large population demand in Johor, the city where the group is investing, as well as its proximity to Singapore and Malaysia’s major cities.
In terms of capital city pricing, Malaysia is the cheapest in the region, said Tim Murphy, chief executive of property investment consultant and underwriter IP Global.
“We like Malaysia also because of the strong foreign ownership level and because you can borrow money. Lenders are friendly,” he added.
Meanwhile, Knight Frank revealed that prices of luxury homes in Malaysia are much lower than those in Singapore and Hong Kong, while average rental yields are more attractive.
Mortgage terms in Malaysia are also better, with buyers allowed to borrow up to 70 percent of the property’s value compared to 40 to 60 percent in Singapore and 30 to 50 percent in Hong Kong.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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Chinese state-owned developer Greenland Group invested US$3.3 billion (RM10.8 billion) in two residential and hotel projects in Malaysia this month.
Its smaller peers – Guangzhou R&F Properties Co Ltd, Country Garden Holdings Co Ltd and Agile Property Holdings Ltd – have invested a total of US$2.7 billion (RM8.87 billion) in Malaysia over the last two years.
Real estate consultant Savills noted that Chinese institutional and retail investors invested a total of US$1.9 billion (RM6.2 billion) into Malaysia’s real estate sector in 2013, surpassing the US$1.8 billion (RM5.9 billion) invested in Singapore, US$1 billion (RM3.3 billion) in Australia and US$867 million (RM2.8 billion) in Hong Kong. However, the figure lagged that invested in the United States and the UK.
Greenland's group chairman, Zhang Yuliang, said: “Malaysia hosts a vast Chinese community and has policies that attract foreign buyers so it has become a new investment destination.”
He added that the company invested in Malaysia due to its stable economic growth, established immigration policies and the large population demand in Johor, the city where the group is investing, as well as its proximity to Singapore and Malaysia’s major cities.
In terms of capital city pricing, Malaysia is the cheapest in the region, said Tim Murphy, chief executive of property investment consultant and underwriter IP Global.
“We like Malaysia also because of the strong foreign ownership level and because you can borrow money. Lenders are friendly,” he added.
Meanwhile, Knight Frank revealed that prices of luxury homes in Malaysia are much lower than those in Singapore and Hong Kong, while average rental yields are more attractive.
Mortgage terms in Malaysia are also better, with buyers allowed to borrow up to 70 percent of the property’s value compared to 40 to 60 percent in Singapore and 30 to 50 percent in Hong Kong.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
Related Stories:
Letter from MIPIM: Day One
Kuala Lumpur ranks 16th in the region and 103rd globally for rental costs
Investment in commercial property to increase 11% in 2014, 2015
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