KUALA LUMPUR, Sept 20 (NNN-Bernama) — Malaysia remains a destination for real estate investment for Chinese investors as the slowdown in the republic’s property market is leading to an increase in Chinese investment in overseas properties, especially in Southeast Asia.
Juwai IQI said in a report that many Chinese buyers believe Malaysia’s property market would recover from its current weakness in the coming year and be rewarded for their investments.
The Asian real estate technology group noted that Malaysia’s economy is recovering rapidly from the pandemic, with forecast full-year 2022 gross domestic product (GDP) growth to reach 5.5 per cent.
“Malaysia is geographically proximate, affordable, and offers an appealing lifestyle to buyers from China, especially the colder north.
“Malaysia’s new premium visa programme (PViP) opens the door to wealthy migrants who wish to reside and work in the country.
“It is the latest move towards transforming the emphasis of Malaysia’s immigration policy from quantity to quality,” it said in the report entitled ‘China Property Slowdown Drives Southeast Asia Property Investment’.
Juwai IQI believes the new visa programme would succeed in attracting close to its target of 1,000 participants in the first year.
“The conditions are not demanding, and the benefits of living in Malaysia under a long-term visa are very attractive.
“Foreigners want to be able to live and work here, send their children to the local international schools, and not have to worry about renewing their visas every six or 12 months,” it said.
It noted that the conditions for residency under the PViP included an income of RM40,000 per month, an RM1 million deposit in a Malaysian bank, and an upfront participation fee of RM200,000 per applicant and RM100,000 per dependent.
The visa is valid for 20 years, although renewals are required every five years.
The top nationalities participating in the PViP will include Japanese and other Asian nationalities, then Europeans, North Americans, and people from the Gulf nations.
On the Southeast Asia level, besides Malaysia, other top property investments by the Chinese are Thailand and Vietnam.
“We believe China will maintain COVID-zero through at least the first quarter of 2023 and likely will not fully reopen until at least the third quarter of 2023,” it added.
— NNN-BERNAMA
