Why wealthy Chinese are losing interest in US and Singapore homes - and where they're looking instead (2025)

Picture this: not so long ago, the ultra-rich from China were rushing to snap up trophy homes in top-tier cities like New York, Los Angeles, and Singapore. These properties were prestigious symbols of success, and they often came with the tantalizing prospect of securing residency or a more convenient passport. But recently, there’s been a noticeable shift. Wealthy Chinese buyers are turning their attention to a new contender in the global property game—Malaysia. At first glance, this might raise eyebrows. After all, the United States and Singapore have long been top destinations for people seeking luxury real estate, top schools, and the excitement of a bustling metropolis. So, what’s behind this pivot?

Let’s dive into the heart of this trend and explore the factors nudging affluent Chinese investors to view Malaysia as the new place to be. From evolving lifestyle priorities to jaw-dropping cost differences, it becomes clear that Malaysia is quickly rising in the ranks and changing the real estate scene in the process.

Shifting Priorities: Lifestyle Over Emigration

One of the most interesting trends in real estate these days is the new set of priorities driving Chinese buyers. For years, one of the biggest motivations for purchasing property overseas was the opportunity to gain citizenship or permanent residency in a new country. In other words, these properties weren’t just vacation homes or investments—they were tickets to a foreign passport or a chance to plant roots somewhere else. However, this trend is losing steam.

According to research by Juwai IQI, only 3% of Chinese buyers now purchase overseas homes with the intention of emigrating. Compare that to 11% in 2019, and you see a pretty sharp drop. The reasons behind this shift are varied. In some cases, political and economic uncertainties in foreign countries have made emigrating less attractive. In other cases, buyers have simply achieved the peace of mind or security they were after and no longer feel the pull of a foreign residency card. Whatever the reason, the data is clear: fewer people are buying homes abroad as a path to emigration.

If they’re not buying to emigrate, what’s the real motivation? Again, looking at the data, 94% of Chinese buyers are focusing on properties that serve a direct family need—like a vacation home, a property for their children studying overseas, or even a potential retirement spot later on. They’re seeking places that offer not just a passport or residency perk, but also a comfortable, convenient lifestyle. And when you look at the global property market through that lens, Malaysia suddenly becomes a compelling choice.

Golden Visas Lose Their Shine

For a long time, “golden visa” programs were incredibly popular among wealthy foreigners, including many from China. Countries like Spain, Portugal, and Ireland opened their doors to investors, offering residency—and in some cases, a pathway to citizenship—in exchange for sizable real estate investments. For thousands of investors, it was a win-win: the country received foreign capital, while investors gained a foothold in Europe.

But in recent years, these programs have faced skepticism and regulatory changes. Spain, Ireland, and other countries have started shutting down or tightening their golden visa schemes. In places where you once saw lines of enthusiastic buyers waiting to qualify for permanent residency, you now see hesitation. When the residency carrot is no longer dangling in front of them, wealthy Chinese investors naturally start to rethink their strategies. If the main goal of buying that upscale apartment in Madrid or Dublin was to get a fast-tracked residency, why bother now?

This has a ripple effect on traditional property hotspots, including the United States and Singapore. While neither is exactly the same as the golden visa programs in Europe, the overall sentiment has begun to shift. If buyers can’t secure the benefits they want, they’ll start looking elsewhere—somewhere that offers not just good living conditions, but also practical perks and a sense of stability. And that’s where Malaysia steps in.

Cost Crunch: Why Malaysia Stands Out

Of course, it’s impossible to talk about real estate without talking about costs. Even ultra-wealthy buyers don’t want to pay more than they have to for a property that meets their needs. In high-priced cities like New York, Los Angeles, or Singapore, the sticker shock can be intense. Buying property in these locations might make sense if you’re determined to live in a global financial hub or have business interests nearby, but if you’re only looking for a vacation home or a place for your kids to stay while studying, you might question whether you really need to spend that kind of money.

Let’s look at some figures that illustrate Malaysia’s value proposition. In Kuala Lumpur, luxury homes sell for around US$240 per square foot. Compare that to Singapore, where luxury real estate can command as much as US$1,810 per square foot. That’s an 87% price gap. For someone looking to maximize bang for their buck, Malaysia’s lower price point is undeniably attractive.

But it’s not just about the raw cost of the home. Malaysia also offers high-quality education options, making it a great place for families who want to ensure their kids get a solid education. Then there’s the matter of lifestyle—Malaysia is known for its friendly culture, diverse culinary scene, and beautiful natural attractions. When you weigh all of that against the price tags in more traditional, high-cost property markets, it’s no wonder that more and more Chinese buyers are finding Malaysia to be the sweet spot between affordability and quality of life.

Malaysia on the Rise

The numbers don’t lie. According to data, Malaysia shot up to 4th place among luxury property hotspots in 2024. Meanwhile, the United States dropped to 7th, and Singapore slipped from 3rd to 9th. These are major shifts in a market that often seemed dominated by a handful of countries.

Why is Malaysia doing so well? Part of the answer lies in the country’s deliberate efforts to make itself more welcoming to foreign investors. Beyond the relatively low cost of property, Malaysia offers options like the “Malaysia My Second Home” (MM2H) program, which gives long-term visas to foreigners who meet certain financial criteria. These kinds of policies make it easier for someone to move in, buy a property, and settle down—whether as a seasonal vacationer, a parent of a student, or a future retiree.

Developer Drama Abroad

Another factor that can’t be overlooked is the drama surrounding some Chinese property developers operating in foreign markets. Take Greenland USA, for example, which defaulted on a US$350 million loan for a project in New York. Incidents like this generate headlines that spook both domestic and international investors. If big-name developers are facing financial trouble, buyers are bound to worry about the stability of the real estate market in those locales. This also raises questions about construction delays and whether a project will even be completed as promised.

China’s larger real estate sector has been under strain in recent years, with high-profile developer defaults capturing the public’s attention. When this turmoil spills over into overseas projects, it can erode confidence in previously rock-solid markets like the US. In contrast, Malaysia doesn’t often make headlines for massive real estate development bankruptcies or sudden project failures—another check in the pros column for investors looking for a safer bet.

The Big Takeaway

So, where does this leave us in the grand scheme of global real estate? Wealthy Chinese buyers are no longer just chasing passports or the flashiest addresses. They’re looking for value, stability, and lifestyle perks that go beyond mere status. The US, Singapore, and other traditional hotspots may continue to attract buyers who want to be in financial capitals or near certain business opportunities. However, for investors whose primary goal is to enjoy a comfortable lifestyle, a good deal on property, and decent visa or residency perks, Malaysia is becoming a real contender.

There’s every indication that this trend will continue to grow. We may see the US and Singapore adjust their own property regulations or introduce new incentives to lure back foreign investors. Alternatively, they may lean more heavily on the prestige factor—some people will always pay a premium to say they own a property in Manhattan or Marina Bay. But for many wealthy Chinese buyers, those perks and bragging rights no longer cut it when stacked against the more immediate benefits of owning a home in Malaysia.

In the end, this isn’t just a story about Malaysia stealing the spotlight—it’s a sign of how the international real estate market is evolving. Buyers are much more selective and value-driven than they were a decade ago. With global economic uncertainties on the horizon, it makes sense that more investors are turning to countries where they can get solid returns, a stable environment, and a pleasant way of life. And right now, Malaysia seems to fit the bill better than most.