Asian Property Review talks to Chung Shan Tat, CEO of Macrolink Malaysia and Khalil Adis, founder of Khalil Adis Consultancy on why Chinese developers are venturing overseas and why Iskandar Region in Malaysia holds such a strong attraction for them.
So far, five major Chinese developers have entered Malaysia – Zhouyuan, Greenland, Country Garden, R&F and Macrolink. These are some of the biggest developers in China; for example, Macrolink Group is a publicly listed conglomerate with its core business in real estate development. Since 1992, it has developed almost 100 projects in China and Mongolia.
1. Why have Chinese developers come to Malaysia in a big way since the last few years?
Chung: There is significant competition among Chinese developers in China which has seen recordhigh growth in property development. In order to achieve continuous growth, the more capable developers have to adopt an international perspective when looking for business opportunities. Malaysia is popular with them due to several factors, among them a shared culture as 20% of the population in Malaysia are Chinese. Other factors include the lower property price in Malaysia compared to first-tier metropolises of China, the pleasant climate which is ideal for vacation and retirement, the multicultural social environment, and internationalized education.
Khalil: Chinese developers have come to Malaysia in a big way since the last few years as they are flushed with cash and are looking to offer their products in emerging markets. Malaysia, specifically Iskandar Malaysia, has been attracting Chinese investors as it is strategically located close to Singapore, has a significant Chinese population and land costs that are not as expensive as Singapore.
2. Who are they targeting as buyers? How is the response so far in terms of sales?