KUALA LUMPUR, Aug 13 — Malaysia is witnessing a notable rise in inquiries from Chinese nationals about luxury homes, with investment and educational opportunities driving this trend.

Singapore daily The Straits Times reported that according to real estate firms 2024 has seen increased interest in properties, especially in Kuala Lumpur’s prime locations such as the Central Business District and upscale areas like Bukit Damansara, Bangsar, and Kenny Hills.

According to Juwai IQI, luxury residential properties, typically priced at RM1 million (S$300,000) and above, are in high demand.

This figure is nearly double the average price of new apartments, which stands at RM582,887, as reported by the global proptech firm.

Juwai IQI CEO Kashif Ansari told the Englis daily that there was a 42 per cent increase in inquiries from Chinese buyers in the first quarter of 2024 compared to the previous quarter.

"The 42 per cent increase in inquiries by Chinese buyers resulted in a similar increase in buyers purchasing homes,” Ansari told The Straits Times.

He added that Chinese buyers now make up the largest segment of foreign purchasers in Malaysia, focusing on properties in Kuala Lumpur and Johor priced up to RM2 million.

Despite a global trend of Chinese investors offloading overseas properties due to rising mortgage costs and a slowing Chinese economy, interest in Malaysian real estate remains strong.

The report said the revamp of the Malaysia My Second Home (MM2H) residency visa scheme in June now requires foreign residents to buy property, further boosting demand.

According to the report Malaysia has ascended to become the second most popular Southeast Asian destination for Chinese real estate buyers, surpassing its previous third-place ranking in 2022.

Zerin Properties CEO Previn Singhe told Straits Times that the agency has observed a significant uptick in transactions involving luxury properties valued above RM4 million, with a 20 per cent increase in the first half of 2024 compared to the second half of 2023.

"Malaysia’s stable government, heightened economic activity, and the diversity of various races are enticing buyers from China and the UK to live with their families in the multicultural society,” Previs was quoted saying.

The growing Chinese presence extends beyond real estate. Malaysia’s Education Ministry reported that the number of Chinese students in higher education institutions increased by 35 per cent in 2023, reaching 44,043.

According to the news report the number of Chinese executives and employees working in Malaysia has quadrupled from 10,000 in 2021 to approximately 45,000 currently.

Since Malaysia introduced visa-free travel for Chinese citizens in December 2023, the country has seen a surge in Chinese tourism, with 1.1 million visitors in the first five months of 2024.