With the price threshold for foreign property buyers lowered from RM1 million to RM600,000, developers are turning to foreign buyers to move units and clear stocks.
Mah Sing Group Bhd founder and group MD Tan Sri Leong Hoy Kum expects to see more property transactions involving foreign buyers.
“At present, we are engaging local and overseas agencies, along with a series of digital marketing initiatives lined-up to market our products in an effort to continue to leverage on the current interest from foreign buyers,” he told The Malaysian Reserve.
“We are seeing overwhelming interests from Hong Kong buyers in our properties, especially from those who have excess funds and are turning to Malaysia for property investments in view of our many attractive qualities, including tropical weather, cleaner air and a good education system, among others.”
Leong revealed that Mah Sing is actively promoting several projects most suitable to foreign buyers, such as Meridin @ Medini, M Vertica, i-Parc KL and Legenda @ Southbay in Penang.
The company witnessed a spike in interest from foreign buyers after the lower price threshold announcement in Budget 2020. And with the government’s Malaysia My Second Home (MM2H) programme, the developer is bullish the positive momentum will continue in 2020, said Leong.
Another player eyeing the foreign property buyer segment is Gamuda Land, the property development unit of Gamuda Bhd.
Gamuda Land COO Aw Sei Cheh explained that it has always been in the DNA of the company to have the foresight in recognising opportunities as they arise.
“Therefore, even before the Malaysian property market turned sluggish, foreign buyers have been one of our target markets,” he said.
“Our experience also tells us that foreign buyers are more interested in properties that are under construction compared to completed projects as they plan for their second home (in the) years ahead.”
Aw shared that enquiries from foreign buyers spiked since the start of the year, especially from Hong Kong and China due to the growing tension from the US-China trade war and the political turmoil in Hong Kong.
In fact, the buyers of its Horizon Hills project in The Cove, Johor were from 40 different nationalities – 52% Malaysians, 19% Singaporeans while the other 29% are from other countries.
Paramount Property Development Sdn Bhd, on the other hand, noted that while it focuses mainly on local property buyers, it still expects to attract the interest of foreign buyers.
“We generally build with local buyers in mind, but foreign buyers may find our Utropolis Batu Kawan integrated development in Penang interesting. We expect interest from both locals and foreigners — those who want to buy either for their stay, for their children studying at UOW Malaysia KDU, or for investment,” said its CEO Beh Chun Chong.
“Sejati Residences in Cyberjaya is one of our developments opened to the foreign market, and it is already 99% sold,” he added.