Foreign Property Buyers Back In Force By June 2023; Survey

A survey conducted by Juwai IQI of nearly 350 real estate agents across Malaysia found that more than two-thirds expect offshore buying of Malaysian real estate will return to pre-Covid levels by the end of 2023.

Further insights revealed, that 15 percent of agents believe foreign buying will return to its previous levels as soon as the end of this year. Whereas 30% believe we will reach the previous levels milestone by June, while an additional 23 percent believe we will reach that level by the end of next year.

Juwai IQI Group Co-Founder and CEO Kashif Ansari said: “The pandemic is almost behind us, and thanks to public sector support and the vaccination campaign, we have learned to overcome it. “The reopening of borders and the resumption of travel means that foreign buyers are beginning to return. Foreign investment is essential to the Malaysian property market.

He added Malaysia has many advantages as a destination for foreign investment and that the fact that Malaysia’s economy will benefit from the current global environment of commodity price growth sets us apart from many other Southeast Asian countries. Kashif says this is a major selling point. “Strong economic and employment growth is likely to lead to strong property market performance. As inventory is sold down and prices even begin to rise, foreign investors will find the Malaysian market irresistible. Most investors want to purchase in a rising market, and few have the fortitude to buy when prices are falling.”

“We are already seeing a similar increase in property market activity from Singaporean-based buyers after the border with Singapore opened earlier this month”

Since 2017, Malaysia has leapt from Chinese buyers’ 10th favourite destination to their fifth. Australia and Canada have also become more popular with Chinese buyers during this timeframe. This data is based on buyer enquiries made through its platform and agent network. Chinese buyer demand for Malaysian homes has dipped and is at about one-third the level it was before the pandemic but has begun climbing back up. The drop has been due to the reduction in travel between the two countries.

“We are already seeing a similar increase in property market activity from Singaporean-based buyers after the border with Singapore opened earlier this month. “We believe that in 2022 to 2025, Malaysia has the opportunity to attract international students in K-12, university, post-graduate, and English-language programs who might otherwise have gone to the U.S. or Australia. The number of Chinese students in the US is down by 20 percent remarked Kashif.

In 2019, there were more than 32,000 international students enrolled in Malaysian educational institutions, accounting for about 6 percent of total student numbers. Juwai believes that in 2022 the number of international students has been reduced by at least 30 percent and that it will again begin climbing this year, before returning to the pre-pandemic level by 2025. Here Kashif says when China’s borders reopen to free travel, the rebound in Chinese property acquisition will gain pace as visits climb and there will be a fair amount of making up for lost time.

Juwai noted the Malaysian home market remains appealing to buyers from across Asia due to the high quality of life on offer and relatively low prices. Buyers also believe that Malaysia has great potential for price and rental appreciation in the coming years, making this a good time to purchase. The Malaysia My Second Home program, will continue to be a successful program under the revised policies. Authorities announced in January that they had received 111 applications. “NAPIC reports that RM18 billion of residential property sold in the third quarter.

The Q3 2021 Juwai IQI Property Survey & Index – Malaysia found that foreign buyers account for 10 percent to 15 percent of new and second-hand transactions in Malaysia’s largest cities. One can estimate that foreign buyers purchase in the range of RM1.8 billion of real estate per quarter, or RM7.2 billion per year.

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