Malaysia was once seen as a promising market for Chinese real estate developers. Following the disappearance of Malaysian Airlines Flight 370, that has changed – at least temporarily.
“For now, marketing homes in Malaysia is going to be a bit awkward. It’s just like how we don’t market homes in Japan to Chinese customers,” said one Beijing-based real estate consultant, who declined to be named. She was referring to another political sore spot – China’s spat with Japan over islands in the East China Sea – which has dented interest in the Japanese market among Chinese investors.
“My family and I were considering a trip to Malaysia for a holiday, but now, I think we will look elsewhere, maybe Thailand,” Tang Xue, a banker who works in Shanghai, recently told China Real Time. Ms. Tang, who owns apartments in London, said buying a home in Malaysia was not something she would consider now.
“The Malaysian authorities were dishonest from day one, why should I contribute to the Malaysian economy?” she asked.
The shift in mood has started to worry some big Chinese property developers who have already made a substantial bet on selling homes in Malaysia to mainland Chinese investors.
However, despite the significant drop in Chinese visitors to Malaysia, companies like Guangzhou R&F Properties don’t seem to concerned. Said the spokeswoman,“We feel sorry about the Malaysia Airlines tragedy. But the incident hasn’t had much impact on us so far.”