Hong Kong is in focus everyday these days. It’s getting serious with the latest clash between the protestors and the police in some Hong Kong universities. We have been reading that Singapore is now a focus for Hong Kongers because they feel that in Singapore they feel safer, politically. There has been news that funds from Hong Kong has been moved into Singapore which is ASEAN’s most advanced financial market. Well, some of these Hong Kongers may also be putting some of their money in Malaysia. Good diversification strategy anyway. Plus, we are slightly over three times cheaper too.
Article in propertyguru.com.my Bruce Lee, VPC Realtors (JB) Sdn Bhd Asia Pacific property consultant said, “Hong Kong buyers have been coming in batches to buy the property in Malaysia. They come quietly every weekend and buy around 50 to 100 homes per batch. They have acquired more than 1,000 units in overall Malaysia to date.”
Hong Kong buyers have already bought 500 Malaysian properties from July to August 2019. Lee said that it’spossible that Hong Kongers may buy up to 10,000 units of properties in Malaysia. If the property price average is set at RM1 million, these 10,000 units will have a total value of RM10 billion.
Lee shared that even though transacted prices of commercial properties have dropped 50% in Hong Kong, the residential market will remain strong because the supply of homes in Hong Kong can never meet demand. Even if property prices there do not increase, it willnot decrease either. Article in propertyguru.com.my
By the way, if Hong Kongers really do buy up to 10,000 units here in Malaysia, then the % of foreign property purchasers in Malaysia will increase. Just need to wait for the latest update. What I hope though is that they are buying because they are coming here to stay and not be speculative buying a lot of units per person. When this happens, the market will easily be influenced by the large quantity of transactions should these Hong Kong buyers suddenly decide to sell and return the funds back to Hong Kong.
We need to remember that when foreigners need to move, their decisions are likely to be fast. This is why I personally do not like Malaysian property market to attract that high % of foreign purchasers like in Melbourne or Sydney. I do hope everything will normalise in Hong Kong in the near future. Let’s just have lots of genuine interest with Malaysian properties from Hong Kongers. Happy understanding.
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