Malaysia Ranks Among Top Three in Asia for Cross-Border Property Investments

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“The report highlights Malaysia’s rising buying power and growing interest in international property investments.”

Melaka, 19th June 2024, 14.35pm – According to the Asia-Pacific Cross-Border Residential Property Buying Trends Report for Q1 2024, released by Juwai IQI Holdings on Tuesday, Malaysia has ranked as the third highest country in Asia for outbound cross-border property investment, following Mainland China and Hong Kong.

The report highlights Malaysia’s ranking as an indicator of the increasing purchasing power of Malaysian consumers and their growing interest in international property investments. The top destinations for Malaysian buyers are, in order, Thailand, Australia, Vietnam, Indonesia, Singapore, Spain, the UK, Greece, Japan, and the US.

The report identified several key factors driving Malaysian buyers’ interest in overseas real estate, such as economic growth and the emergence of a rising middle class. These developments have boosted disposable income, allowing more individuals to invest internationally.

In a statement with the report’s release, Juwai IQI Holdings CEO Kashif Ansari said Malaysia is “a dynamic player in outbound investments.” He highlighted that the country’s economic growth and rising middle class are driving substantial interest in international real estate, with Malaysian investors broadening their horizons and diversifying their portfolios as the global market evolves.

Besides outbound investments, Malaysia is also a favored destination for inbound property investments. The report indicates it is the second most popular choice for buyers from Singapore, sixth for those from Hong Kong, and seventh for mainland Chinese buyers.

According to the report, several factors are driving foreign interest in Malaysia’s residential real estate market, including its strategic location, major new infrastructure projects, favorable investment environment, relatively high yields, and the attractiveness of its diverse property market.

Additionally, the depreciation of the Malaysian currency relative to overseas currencies has made the market more affordable for regional buyers.

The report also highlights Vietnam, Indonesia, and the Philippines as emerging targets for Asian real estate investors. Vietnam, in particular, is gaining attention due to its rapid economic growth, favorable investment conditions, infrastructure development program, and vibrant property market, which offers diverse opportunities for investors seeking high returns at a relatively low cost.

Indonesia, with its large population, economic growth, and expanding middle class, offers significant potential for real estate investment, though it has not yet become a top destination for buyers, the report noted. Offshore investors can find various options, including beach villas for vacation rentals and urban properties in Jakarta.

The Philippines is also attracting interest due to its strong economic growth and over US$33.3 billion (RM157.1 billion) in annual remittances, which support local property prices. The report highlights that government investments in new infrastructure and a business-friendly environment enhance its appeal. Popular investment types for foreign buyers in the Philippines include beach properties and urban apartments.

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