Property Hunter Magazine August Issue 2014 | Page 63

Chinese Developers Bet on Malaysia as Investors Turn
Cold on Hong Kong, Singapore
One challenge facing Chinese
developers is their ability to
secure land, which is tightly
controlled by local governments.

International investors from Hong Kong and China showed great interest in
Malaysian properties at a recent private roadshow in Sabah

Malaysia is turning into the
darling of Chinese developers
as mainland investors turn their
backs on market restrictions in
Hong Kong and Singapore and
bet billions on cheaper housing
and higher returns in the
Southeast Asian country.
State-backed Greenland Group
announced this month a $3.3
billion deal in two residential and
hotel projects in Malaysia, joining
smaller peers Country Garden
Holdings Co Ltd, Guangzhou
R&F Properties Co Ltd and Agile
Property Holdings Ltd, which
have invested a combined $2.7
billion in Malaysia in the past two
years.
In 2013, Chinese institutional
and retail investors invested
a total of $1.9 billion into real
estate in Malaysia, exceeding the
$867 million invested in Hong
Kong and $1.8 billion invested
in Singapore, according to real
estate consultancy Savills. The
figure also topped the $1 billion
invested in Australia, but lagged
investments from China into the
UK and the United States.
“Malaysia hosts a vast Chinese
community and has policies
that attract foreign buyers so it
has become a new investment
destination,” said Greenland’s
group ch