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Thread: Chinese developers bet on Malaysia as investors turn cold on Hong Kong, Singapore

  1. #1
    Blue blood

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    Default Chinese developers bet on Malaysia as investors turn cold on Hong Kong, Singapore

    http://www.themalaymailonline.com/mo...hong-kong-sing

    HONG KONG, March 12 — 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 US$3.3 billion (RM10.85 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 US$2.7 billion in Malaysia in the past two years.
    In 2013, Chinese institutional and retail investors invested a total of US$1.9 billion into real estate in Malaysia, exceeding the US$867 million invested in Hong Kong and US$1.8 billion invested in Singapore, according to real estate consultancy Savills. The figure also topped the US$1 billion invested in Australia, but lagged Chinese investments into Britain 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 chairman, Zhang Yuliang.
    He added that Malaysia’s stable economic growth, large population demand in Johor Bahru, the city where the group is investing, its proximity to Malaysia’s major cities and Singapore, as well as the country’s established immigration policies, are reasons for the company to invest.
    Greenland is due to report 2013 earnings today. Officials with Agile and R&F could not be reached for comment.

    “Malaysia is the cheapest in the region in terms of capital city pricing,” said Tim Murphy, chief executive of property investment consultant and underwriter IP Global. “We like Malaysia also because of the strong foreign ownership level and because you can borrow money. Lenders are friendly.”
    A 15 per cent stamp duty on non-resident buyers in Hong Kong and Singapore, where cash-rich mainland Chinese have been blamed for driving up prices in the past few years, has deterred many foreign buyers, Murphy added.
    Luxury residences in Malaysia sell for between US$2,300 and US$5,600 per square metre, much lower than US$27,600 to US$33,700 in Singapore and US$43,700 to US$53,500 in Hong Kong, according to real estate consultancy Knight Frank. Average rental yields are also more attractive in Malaysia at 4 to 6 per cent, compared to 3 per cent in Singapore and 2.5 per cent in Hong Kong.
    Mortgage terms are also better for non-residents in Malaysia, with buyers able to borrow 70 per cent of a property’s value. That’s more generous than the 40 per cent to 60 per cent in Singapore and 30 per cent to 50 per cent in Hong Kong.
    Country Garden President Mo Bin said Malaysia was a more attractive market for the company than China.
    “Malaysia is a nice market, it has some edge over China,” he told an earnings briefing after the company posted today a 24 per cent increase in its 2013 net profit.
    “We don’t rule out acquiring more land there.”
    One challenge facing Chinese developers is their ability to secure land, which is tightly controlled by local governments.
    “It’s difficult to find good opportunities because the good plots of land are controlled by the local government. Only local developers, family of government officials and political affiliates can have access,” said an executive at a private equity fund who invests in Southeast Asian projects.
    PROPERTY TOURS
    Country Garden, which focuses on high-end residential housing, has three villa projects underway in Malaysia after it entered the market in early 2012. At its latest condominium project at Iskandar, five minutes from the Singapore border, the company posted contracted sales of 7 billion yuan (RM3.75 billion) last year, topping the list of its projects.
    Since the middle of last year, Country Garden has been organising subsidized tours to Malaysia for potential Chinese buyers, departing from Guangzhou, Hong Kong and Macau.
    A four-day tour costs as little as 3,610 yuan, according to information on real estate agent website, house.163.com, with the property developer sponsoring 2,000 yuan for each person.
    One morning is spent at Country Garden’s Danga Bay villa in Iskandar.
    The web page, topped with a banner that says “300,000 yuan to get residency for the whole family in a city next to Singapore”, also gives details about Malaysia’s immigration policies. — Reuters
    - See more at: http://www.themalaymailonline.com/mo....UKpiZIlA.dpuf

  2. #2
    Junior

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    They r banking on JB's proximity to Sg to draw buyers from China and elsewhere...

    But the China developers really seem to be investing big in Iskandar...

  3. #3
    Newbie

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    Quote Originally Posted by mummy View Post
    They r banking on JB's proximity to Sg to draw buyers from China and elsewhere...

    But the China developers really seem to be investing big in Iskandar...
    yeap..and still got some gongkia here think iskandar is a myth.

  4. #4
    Ultimate Underdog

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    It's not myth. But it's a different kind of risk altogether.

    High risk high gain...
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  5. #5
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    Quote Originally Posted by Kelonguni View Post
    It's not myth. But it's a different kind of risk altogether.

    High risk high gain...
    1 mil RM a risk? please la. If u cannot afford to risk 1 mil RM, continue to stay in your pigeonhole lo.

  6. #6
    Junior

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    Quote Originally Posted by polarinda View Post
    1 mil RM a risk? please la. If u cannot afford to risk 1 mil RM, continue to stay in your pigeonhole lo.
    Pigeonhole still anytime better than staying in matland...

  7. #7
    Newbie

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    Quote Originally Posted by fiat500 View Post
    Pigeonhole still anytime better than staying in matland...
    To each his own, why so kanchiong spider if others are keen, beh song go sing song lah, why kow peh kow bu, just like the khaw recently, hahaha

  8. #8
    Junior

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    Quote Originally Posted by Photogguy View Post
    To each his own, why so kanchiong spider if others are keen, beh song go sing song lah, why kow peh kow bu, just like the khaw recently, hahaha
    Nobody kpkb here... we are happy in fact taking full advantage of the strong SGD in jb....

  9. #9
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    Quote Originally Posted by fiat500 View Post
    Nobody kpkb here... we are happy in fact taking full advantage of the strong SGD in jb....
    Wah u dare go u jb? Not afraid to get rob n rapped?

  10. #10
    Junior

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    Quote Originally Posted by Photogguy View Post
    Wah u dare go u jb? Not afraid to get rob n rapped?
    What u said is so true! It is indeed very dangerous in jb..
    Hahahahahaha

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