China took up the current pole position for contributing the lion's share of investment in Malaysia's real estate market, beating Singapore for the top spot, according to a report by London's Financial Times.
Chinese property groups have injected upwards of US$2 billion into the Malaysian property market over the last three years, higher than the US$985 million invested by Singaporean companies over the same period, the publication noted, citing figures from Real Capital Analytics based on completed transactions amounting to more than US$10 million.
Chinese investors appear to be flocking to Malaysia as it is deemed a cheaper alternative to Australian and Hong Kong property investments, on top of Malaysian real estate being much more affordable than Chinese properties, especially those in top-tier cities. The March 27 report also added that Chinese investments have increased due to "warmer political ties between Beijing and Kuala Lumpur" helping to soothe commercial ties between the two countries.
Recent notable Chinese investments in Malaysia include Country Garden Holdings Co. Ltd.'s 14-square-kilometer Country Garden Forest City development in Johor Bahru and Alibaba Group Holding Ltd.'s plans for its first overseas logistics hub in Kuala Lumpur.