Knight Frank: Influx of Chinese investors interested in Malaysian properties
KUALA LUMPUR, July 20 — There is an influx of Chinese investors interested in the Malaysian property market, says London-based global property consultancy agency, Knight Frank LLP.
Asia Pacific Research Head, Nicholas Holt said this year was one of the busiest with a lot of Chinese investors aggressively discussing with the agency.
“There are a lot of China-based manufacturers, as well as other sectors that have set foot in Malaysia, and most are very positive in doing business here,” he told reporters at the inaugural Active Capital, The Global Report 2017 launch, here today.
According to the report, Asian real estate investors have launched themselves onto the global stage over the last few years to become one of the most important global capital exporters, with China (11 per cent) ranking second behind the United States, Singapore (seven per cent, 6th), Hong Kong (five per cent, 7th), South Korea (three per cent, 7th) and Japan (one per cent, 16th) significantly further down the top 20 list.
“However, it is Chinese capital that has been the key driving force behind global real estate transaction volumes over the past few years, especially across the Super City markets based on the report.
“Despite recent geo-economic uncertainties around the world, Chinese appetite for mega-assets seems insatiable.
“However, some target locations are beginning to feel uneasy around the sustainability of Chinese investment, as questions are being raised on the government’s latest capital outflow controls, and the health of the domestic economy,” said Holt.
He also said the emergence of an array of Chinese investors, institutional, state owned enterprises, developers and privates in the global real estate markets, has undoubtedly been the largest single trend over the last decade.
“Despite the more stringently applied capital controls and a slight lull in outbound activity in 2017 over the longer term, with the opening of the capital account and internationalisation of the renminbi, Chinese capital will continue to have a significant impact in the major property markets around the world,” he added.
Findings indicate the transaction volumes of Chinese investments evidently depict the cross-border investment narrative in China, where cross-border activity has increased by 26-fold over the last ten years.
In 2016 alone, Chinese capital cross-border real estate transactions amounted to US$26.6 billion, accounting for nearly 40 per cent of all Asian cross-border capital invested and also more than half of what was invested domestically in China (excluding land sales).
Meanwhile, Knight Frank Malaysia, Capital Markets Executive Director, Allan Sim said: “China’s outbound transaction volume is reducing in several markets, mainly due to stricter capital outflow controls.
“However, we are expecting this trend to be temporary and capital controls will loosen when the Yuan exchange rate improves and gross domestic product growth continues on a steadier path.
“Chinese investors are focusing on gateway cities due to stability and depth and key Southeast Asian hubs, especially cities on the “Road & Belt’ route including Malaysia, will continue to attract investors.” — Bernama
Source: The Malay Mail Online