fbpx
Connect with us

News

UTM Prof Warns Influx of Property Buyers from China Could Harm M’sian Homebuyers & Renters

Published

My Post 1 2024 10 08T111401.278
Source: 123RF & 123RF

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

There is apparently an influx of Chinese nationals buying houses in Malaysia, which has led to both positive and negative effects on the real estate market in Malaysia and the country’s economy.

The positives include the boost to the real estate market, especially in the luxury real estate segment in major cities such as Kuala Lumpur, Johor Bahru and Penang, which then contributes to economic growth, infrastructure development, large-scale projects, an increase in job opportunities in construction and real estate, and more.

According to a report by Harian Metro, the Director (Real Estate) of the Faculty of Built Environment and Surveying at the Universiti Teknologi Malaysia (UTM), Professor Madya Dr Muhammad Najib Razali shared that there is also a significant negative impact due to the influx of foreign buyers.

houses 2
Source: 123RF

This image is for illustration purposes only.

One of the main concerns is the increase in property prices, especially in the luxury segment, which will lead to difficulty for locals, especially those in the low and middle-income brackets, to buy a house.

“This also contributes to the imbalance in the real estate market. The development of premium properties may cause oversupply in that segment and there is a lack of affordable housing for locals. Additionally, the large-scale purchase of houses by foreigners can raise concerns about land sovereignty and foreign influence on local properties,”

“This, in turn, creates dissatisfaction among local communities. Furthermore, Chinese investments can encourage speculation in the real estate market where purchases are made solely for investment purposes without the intention of settling down. This increases market instability and the risk of a real estate bubble,” he said.

Overall, he believes that an increased demand for luxury properties from foreign buyers will cause an imbalance in the supply of affordable housing, which could also lead to property prices increasing and difficulty for Malaysians to own a house.

 

These purchases by foreigners may also cause issues for locals who are renting

Dr Muhammad Najib went on to explain that, if foreign buyers purchase properties for investment purposes and not to live in them, it may cause many properties to be left empty. This can affect community development and bring further instability to the real estate market.

houses 3
Source: 123RF

This image is for illustration purposes only.

On top of that, the high demand for rental units could cause rental rates to increase and lead to a higher cost of living for locals as there isn’t enough supply to meet demand.

“Overall, although the presence of foreign investors such as those from China make a positive contribution to the development of the real estate sector, it poses serious challenges to locals in terms of home ownership and cost of living,”

“It must be remembered that residential real estate is among the sectors that are quite sensitive for Malaysians because it involves national sovereignty,” he said.

What do you think about this? Do feel free to share your thoughts in the comment section.

 

Also read: PRESMA Urges Muslim Eateries to Stop Selling Cigarettes If They Want To Be Considered Fully Halal

My Post 1 2024 10 07T170020.082

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

collage 7 collage 7
News51 minutes ago

Dashcam Captures SUV Intentionally Running Over Lorry Driver in Kajang Before Fleeing, 73yo & 65yo Arrested

Dashcam footage shared by a TikTok user has been going around online showing a lorry driver getting hit in a...

collage 4 collage 4
News2 hours ago

Malaysia Successfully Deposits Rice & Vegetable Seeds in ‘Doomsday Vault’ in Norway

Through the Malaysian Agricultural Research and Development Institute (MARDI), Malaysia has contributed several types of seeds to the Svalbard Global...

collage 6 collage 6
News2 hours ago

Chinese Man Starts Exercising As Part of NY Resolution, Suffers Collapsed Lung After Doing Light Workouts

A middle-aged man ended up with a serious condition known as a collapsed lung after doing some light exercise as...

My Post 1 2025 03 03T102748.810 My Post 1 2025 03 03T102748.810
News3 hours ago

Illegal Racers Caught Using Kuching Airport Road as Race Track, PDRM Allegedly Orders Them to Do 10 Squats

The police have issued 396 summons for various traffic offences during an Op Samseng Jalanan at the Kuching Airport road...

feat image singapore vehicles feat image singapore vehicles
News3 hours ago

PDRM Issued Over 33k Summonses to Singapore-Registered Vehicles in Malaysia Since 2022, Only 4,391 Have Paid

The Royal Malaysia Police (PDRM) recently revealed that 49,598 summonses have been issued by its Traffic Investigation and Enforcement Department...

maybankft maybankft
News21 hours ago

Maybank S’pore to Provide Junior Staff with One-Time RM4K Payment to Offset Rising Living Costs

Maybank Singapore announced on February 28 that it will provide its junior employees with a one-time payment of S$1,250  (RM4,127)...

bombaft bombaft
News22 hours ago

Boy in Shah Alam Gets Stuck in Clay Jar While Bathing, Had to Be Rescued by Bomba

A young boy had a frightening experience last night when he got stuck in a large clay jar while bathing...

collage 1 collage 1
News23 hours ago

“I’m sorry, mummy” – 4yo in S’pore Brutally Abused to Death by Mother and BF, Who Burnt Her Corpse

Trigger warning: This article contains details of child abuse that readers may find upsetting. Megan Khung was severely abused. She...

Announcement

Latest Videos



TRENDING TODAY