"Chinese who buy in Malaysia create local economic growth and jobs . They pay local taxes and fees and boost the tourism industry. It is very good for Malaysia."
SHANGHAI (PRWEB) November 26, 2019
Chinese property buyers in Malaysia make a significant contribution to the Malaysian economy, according to a new economics report from Chinese international property portal Juwai.com and Malaysian-headquartered international real estate agency network IQI Global.
According to data in the report:
- Mainland Chinese buyers accounted for RM8.4 billion (US$2 billion) of total Malaysia residential property sales.
- Mainland Chinese buyers accounted for 12.1 per cent of the total transaction value but only 0.4 per cent of total transaction share in 2018.
- Approximately RM4.3 billion (US$1 billion) of new residential building construction in Malaysia is targeted at foreign and Chinese investors.
- Some 37,800 Malaysian and local foreign workers are employed in residential building construction destined for buyers from China.
- Chinese buyers drive a significant multiplier effect as the impact of their investment spreads to other sectors, such as retail, hospitality, manufacturing, banking, insurance, and transportation. The total positive impact of mainland Chinese residential property buyers on the Malaysian economy and employment is probably several multiples greater.
IQI Global Group CEO Kashif Ansari said:
"There is a real debate in Malaysia about whether foreign investment is good or bad for the country. We wanted to find out for sure, so we put our researchers on the task. It turns out that foreign property buyers have a positive economic impact that goes well beyond the purchase price they pay and also well beyond the related taxes and fees.
"The real impact is probably much larger than what our researchers were able to estimate.
"We estimate that Chinese buyers account for RM8.4 billion (US$2 billion) of property sales, which is 12.1 per cent of total transaction value and 0.4 per cent of total transaction share.
"Malaysia is not the only country that is vigorously debating the benefits of foreign real estate buyers. What makes Malaysia special is that it has a very effective regime of policies that direct foreign buying into those parts of the property market that most benefit the country. In the United States, for example, there are virtually no restrictions on offshore buyers. The government of Malaysia has much more control over foreign property buyers than does the government in United States and many other countries.”
Juwai.com Executive Chairman Georg Chmiel said:
"This report focuses exclusively on Chinese buyers. The final number would no doubt be significantly higher if you were to add in the buyers who come from Singapore, the UK, Australia, and other locations.
"Chinese made 16.5 per cent more enquiries on Malaysian property in the third quarter than in the same quarter of 2018. Buying enquiries have declined from their peak in the first quarter but remain above the average level of 2018.
"In the first half of 2019, Malaysia was the fifth most popular country for Chinese property buying inquiries in the world. By total Chinese property investment in value, Malaysia ranks lower. In the Asia-Pacific, Thailand, Japan, and Australia all rank ahead of Malaysia as the three most popular destinations for Chinese buyers. Canada is fourth in the global ranking.
"Malaysia is especially appealing to buyers motivated by lifestyle, retirement, or education. It has affordable standards of living, high quality of life, medical facilities, and accessible educational institutions. Malaysia consistently ranks among the best places to live. It's simply a fantastic country. I know many Malaysians who are very proud of that.
"Chinese who buy in Malaysia create local economic growth and jobs. They pay local taxes and fees and boost the tourism industry. It is very good for Malaysia."
ABOUT IQI GLOBAL
IQI Global is the No. 1 real estate network in Southeast Asia and the Middle East — with more than 6,000 salespeople across 25 offices across 15 countries in Malaysia, Thailand, Vietnam, the Philippines, Australia, the United Arab Emirates, Cambodia, Indonesia, and more countries. IQI Global agents closed on US$630 million in sales of new property in 2018. For more info: https://www.iqiglobal.com
Juwai.com is the No. 1 Chinese international property portal and reaches more than 3.3 million Chinese-speaking monthly users while showcasing 2.8 million listings from 91 countries. Juwai.com was named the top international real estate website in China by the country’s peak e-commerce body for two years running and is a winner of the prestigious Red Herring Global Top 100 Award for excellence in start-ups. The company’s headquarters are in Shanghai and Hong Kong. Regional teammates are located in the U.S., the Philippines, Thailand, Malaysia, and Australia. For info or to advertise: http://list.juwai.com