Chinese flocking to Malaysia for bargain homes

Malay Mail ^ | 11/11/2013 | Zurairi Ar

[TexGrill]

KUALA LUMPUR, Nov 11 — Malaysia has emerged as the new preferred destination for the Chinese investor looking for a bargain deal in real estate, the Wall Street Journal (WSJ) has reported.

According to the report, Chinese property investors who have grown comfortable buying abroad are now seeking greener pastures by trying their luck in “second-tier” markets such as Edinburgh, Miami and Malaysia.

“Middle-class Chinese are now going to second-tier cities... These places offer higher growth opportunities because more people are doing that now,” Thomas Lam, head of research for Greater China at Knight Frank, was quoted by the international business news daily as saying.

The property consultancy firm explained that house prices in Malaysia are only 5 per cent compared to the average price in Hong Kong, making it a big draw for Chinese buyers.

In addition, foreign homeowners in Malaysia enjoy easy visa entries from the Malaysia My Second Home programme which promises a long-stay visa of up to 10 years for eligible foreigners.

Guangdong-based property developer Country Garden Holdings Ltd was singled out by WSJ, for its ambitious luxury units project in Danga Bay, Johor.

A report by local financial daily The Edge in September noted that at least 66 per cent of its units have been snapped up just within a month, driven partly by Chinese investors which account for 25 per cent of the sales.

[TexGrill]

Global business tip

[AlmaKing]

Is anyone else tired of these garbage posts?

[cunning_fish]

Why is it garbage?

[BubbaJunebug]

Alma- You may think they are garbage...so ignore them. Some of us find the information informative.

[AlexW]

“Is anyone else tired of these garbage posts?”
________________________________________________
Not at all. Why should we be tired of learning?
The Chinese in my town are among the sharpest of business owners. I deal with them every day, as a retail shopper.
It is vital for westerners to learn why they are so successful.

[Rodamala]

I hear there are a lot of dirt cheap fixer-uppers coming to market in the southern Philippines soon...

[SauronOfMordor]

The Chinese upper class seems to find it prudent to have a “bug-out” house overseas.

[TexGrill]

Housing prices in China are way too expensive. Meanwhile, the government only permits wealthy people to purchase two homes at one time. So, wealthy Chinese have no choice but to purchase homes outside the country. Besides, a $10 million mansion in Texas is still cheaper than a one-room apartment in Beijing’s Central Business District. American realtors should take note of this “Global business tip.” I’m even trying to explain to a few Chinese that they’re wasting their money buying homes in California and New York and they should buy homes in Texas instead.

[TexGrill]

I spent one week in Malaysia on vacation last week and surprised it was so livable for Westerners. I went to a few hotel breakfast buffets where I saw Muslim women wearing their head scarves eat pork and beans. I had no chance to eat pork for breakfast, since the Muslims rushed to it whenever they served a new round. Didn’t see any crazed-jihadists or anti-American zealots either and I often go to places where only the natives reside. One restaurant in Georgetown, Malaysia had a big sign saying, “We’re famous for our pork chops and keg-sized beers served on your table.” They weren’t kidding. I had dinner at that place, which was ironically called, “Chicago.” I found it huumorous since Bathouse Barry, a so-called closet Muslim, hails from Chicago. I saw more Westerners with their families in Malaysia than I do in China. I went to a Catholic Church in Kuala Lumpur that was jam-packed for 6 pm Mass on Sunday. For a family vacation, I would actually recommend Malaysia. I would not make the same recommendation for Thailand.

[agere_contra]

Thanks for posting these Tex. I read them and find them useful.