By Joseph Wong
Malaysia has quietly made a stunning leap on the global luxury property map. In 2024, the country surged into the fourth position among destinations most enquired about by Chinese high-net-worth individuals (HNWIs) seeking ultra-luxury homes priced at US$5mil (RM22.3mil) and above. This marks a significant rise from being completely off the top 10 list just a year earlier.
The jump is not accidental. It reflects a confluence of factors: Improved visa frameworks, growing international education infrastructure, appealing lifestyle options and a market that still offers exceptional value relative to more mature property hubs like Singapore and Hong Kong.
From unknown to must-see
According to 2024 data from Juwai IQI, Malaysia is now firmly on the radar of China’s wealthiest property buyers, trailing only behind Thailand, Australia and Canada. The US, once the top destination, has plummeted to seventh place, while traditional powerhouses like the UK and Singapore also saw steep declines in interest.
Malaysia has become a luxury market sweet spot for Chinese HNWIs, said Juwai IQI co-founder and group chief executive officer Kashif Ansari. “Buyers see a combination of strong value, international schools, improved visa policy and a lifestyle that rivals more expensive markets,” he said.
Much of this growth is being driven by personal connections. Many buyers are repeat visitors who have cultivated ties with the country through business, family, or education. Nearly 1.2 million Chinese tourists arrived in Malaysia in the first five months of 2024, a sharp rebound that coincided with renewed confidence and property interest.
Education driving demand
Education remains one of the biggest motivators for property purchases. From 2021 to 2023, Chinese student enrolment in Malaysian higher education institutions grew by 35%. In cities like Kuala Lumpur, Johor Bahru and Penang, Chinese families are increasingly buying homes near international schools and universities for convenience and long-term use.
These purchases are not speculative investments. In fact, lifestyle use is now far more significant than emigration. In 2024, 94% of buyers reported that their primary reason for purchasing was personal or family use, including student housing and vacation properties. Only 3% cited emigration—down from 7.25% in 2023 and 11% in 2019.
A luxury lifestyle at lower cost
Malaysia’s appeal is further enhanced by its affordability. Luxury property prices in Kuala Lumpur are still a fraction of what buyers pay in neighbouring capitals. According to Savills Research, average prime property prices per square foot (psf) are US$1,810 (RM7,969.74) in Singapore and US$1,090 (RM4,799.52) in Bangkok but just US$240 (RM1,056.71) in Kuala Lumpur.
This pricing dynamic offers Chinese HNWIs the opportunity to acquire spacious, high-quality homes without the premiums demanded elsewhere in the region. In the eyes of many buyers, Malaysia provides “Bangkok lifestyle at Bali prices”—with the bonus of Chinese-speaking communities, halal food options and cultural familiarity.
Malaysia My Second Home Reforms
The Malaysia My Second Home (MM2H) programme also played a crucial role. In 2023, the scheme was restructured to offer clearer benefits and a more navigable pathway for long-term stays. Importantly, MM2H visa holders are now allowed to use part of their fixed deposit to buy a home—removing a key barrier for potential property investors.
Where other countries are tightening residency routes and increasing investment thresholds, Malaysia is offering a more welcoming environment. Recent policy changes in Spain, Portugal and Ireland, for example, have made it harder for foreign buyers to tie real estate purchases to residency.
These global shifts have worked in Malaysia’s favour. As golden visa programmes close or become more expensive—Greece’s threshold tripled from €250,000 (RM1.25mil) to €800,000 (RM4mil) —Chinese buyers are turning to markets like Malaysia where they can still find flexibility, affordability and access.
Political and cultural affinities
Beyond financial and legal frameworks, Malaysia also benefits from cultural proximity and long-standing diplomatic ties with China. The large ethnic Chinese population, the availability of Mandarin in education and business settings and the overall friendliness to Chinese tourists have all reinforced Malaysia’s attractiveness.
As one analyst put it: “Malaysia offers many of the comforts of home without the red tape of Western visa policies or the sticker shock of Singapore real estate.”
In a climate where global mobility is more about lifestyle optimisation than escape, Malaysia presents a compelling case. It is a country where buyers can own a seafront villa, enrol their children in world-class schools and spend part of the year enjoying urban luxuries and tropical getaways.
The bigger picture: SEA’s rise
Malaysia’s ascent to fourth place is part of a larger trend in the region. Southeast Asia (SEA) is rapidly becoming the preferred destination for Chinese ultra-wealthy buyers with three countries in the region occupying the top 10 spots. Thailand claimed the number one spot for the first time while Singapore slipped to ninth place.
What’s driving this regional surge is a broader shift in buying patterns. More than ever, buyers are focused on lifestyle. Today’s Chinese HNWIs want to enhance their quality of life, secure education for their children and establish soft landings around the globe—not just hedge against political risk.
According to Juwai IQI, proximity to top schools was listed as a top priority by 16% of buyers, reinforcing the need for developers and agents to highlight family-oriented amenities and locations. Privacy, prestige and space also remain important considerations.
For Malaysia, the momentum appears sustainable. Government reforms, coupled with international exposure through platforms like MM2H and a deepening presence of international schools, are creating a foundation for continued interest from foreign buyers.
Chinese HNWIs are now looking beyond passport-linked investments. They are investing in lifestyle, family infrastructure and homes that enhance their global mobility. Malaysia offers all of that and at a better value than nearly any comparable destination.
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