The national real estate market in Malaysia is experiencing a gradual increase in foreign interest, particularly in areas like the Klang Valley and Sabah, Penang, and Johor. The Malaysian Institute of Estate Agents (MIEA) president, Tan Kian Aun, stated that while the rebound is not as strong as before the pandemic, it indicates a slow recovery in the sector.
Two main groups of foreigners are entering the real estate market in Malaysia – investors and expatriates. Factors influencing foreign property investments include exchange rates, property tax, and the recently implemented 4% stamp duty on foreign buyers.
Tan mentioned that Malaysia continues to be an attractive destination for foreign investors due to its affordability, reasonably priced properties, and manageable stamp duty increases.
He also noted that the 4% increase in stamp duty has minimal impact on cash buyers, as many foreign investors prefer to purchase property outright rather than obtaining loans, which can be challenging for foreigners in Malaysia.
Despite challenges in job opportunities for foreigners, Tan highlighted the increasing demand for rentals in Malaysia, emphasizing the country’s affordability and appealing lifestyle.
He also pointed out the potential positive impact of Malaysia My Second Home (MM2H) visa holders on the property market, as many foreigners are drawn to Malaysia’s culture and lifestyle.
MM2H Consultants Association president Anthony Liew stated that a significant number of applicants from China, Hong Kong, and Taiwan are choosing to invest in Malaysia. He also mentioned that foreigners with children studying in Malaysia often decide to purchase property in the country.
According to Liew, Japanese and Korean MM2H visa holders are split between owning property or renting, while individuals from European and American countries typically prefer renting in Malaysia.
Chinese families, especially those with children studying in Malaysia, tend to buy property, but may sell if they do not plan to continue residing in the country.
The MM2H programme, introduced in 2002 to attract retirees and long-term residents from abroad, was temporarily halted in November 2019 and reinstated in October 2021 with stricter application conditions.
Liew highlighted the potential of MM2H visa holders to stimulate the real estate industry in Malaysia and emphasized the importance of the programme’s implementation for high-end properties.
Managing director of PPC International Sdn Bhd Datuk Siders Sittampalam noted the relationship between the property market and the economy, cautioning against direct correlations between economic growth projections and immediate surges in the property market. Despite a 9% growth in property value in 2023, Sittampalam shared a cautious outlook for 2024.
Regarding the MM2H programme, he suggested that it could have a significant impact, especially on high-end properties, and called for the government to expedite the programme to stimulate the property market, particularly in the luxury segment.
Malaysia Productivity Corp director general Zahid Ismail highlighted the increasing presence of expatriates in Malaysia as a positive sign of the country’s appeal to investors and international companies seeking growth. He emphasized the role of the organization in driving productivity and innovation to support Malaysia’s position as a dynamic player in the global market.
