Malaysia top third in Asia for outbound cross-border property investment — Juwai IQI

KUALA LUMPUR (June 18): Malaysia has emerged as the top third country in Asia for outbound cross-border property investment after Mainland China and Hong Kong, according to Juwai IQI Holdings’ Asia-Pacific Cross-Border Residential Property Buying Trends Report 1Q2024 that was issued on Tuesday.

The report said Malaysia’s ranking demonstrates the growing buying power of Malaysian consumers and their increasing interest in cross-border property investments. The top destinations Malaysian buyers have shown interest in are Thailand, Australia, Vietnam, Indonesia, Singapore, Spain, the UK, Greece, Japan and the US, in that order.

The report attributed several key factors that contribute to this interest among Malaysian buyers in buying overseas real estate, including economic growth and a rising middle class that have increased disposable income, enabling more individuals to invest internationally.

In a statement accompanying the report’s release, Juwai IQI Holdings CEO Kashif Ansari said that Malaysia is “a dynamic player in outbound investments. Our economic growth and rising middle class are fuelling significant interest in international real estate. Malaysian investors are expanding their horizons and diversifying their portfolios, which will continue as the global market evolves.”

In addition to outbound property investments, Malaysia is also a popular inbound property investment destination. According to the report, it is the second most popular destination for buyers from Singapore, sixth for Hong Kong buyers and seventh for buyers from mainland China.

The factors driving foreign buyer interest in Malaysia’s residential real estate market include the country’s strategic location, significant new infrastructure projects, favourable investment climate, reasonably high yields and the appeal of its diverse property market, according to the report.

Apart from those, the appreciation of overseas currencies over Malaysia’s currency has also contributed to increased affordability among regional buyers.

Meanwhile, Vietnam, Indonesia and the Philippines are among countries in the region Asian real estate investors are eyeing, the report adds. It said that Vietnam is attracting attention due to its rapid economic growth, favourable investment climate and infrastructure investment programme, and its vibrant property market, which offers diverse opportunities for investors seeking high returns at a relatively low cost.

Indonesia, with its large population, economic development and growing middle class presents significant potential for real estate investment, although it has not yet moved into the first rank of buyer destinations, the report said. The country offers a range of real estate investment options for offshore buyers, from beach villas that can serve as income producing vacation homes, to urban investments in Jakarta, it added.

The Philippines is also drawing interest with its robust economic growth and more than US$33.3 billion (RM157.1 billion) in annual remittances that help support local property prices, according to the report. Furthermore, the government’s investments in new infrastructure and creating a business-friendly environment also contribute to its attractiveness. Like in Indonesia, beach properties and urban apartments in the Philippines are among popular investment types for foreign buyers, the report pointed out.