KUALA LUMPUR: A strengthening ringgit presents attractive opportunities for  Malaysian investors in the Australian property market, despite a temporary ban on foreign ownership for existing housing till 2027, says Knight Frank Malaysia. 

Trading at RM2.75 to the Australian dollar as of Feb 24, from a high of RM3.18 in July 2024, the trend primarily benefits purchasers with ringgit-denominated loans. The ringgit is expected to maintain its upwards trajectory against other currencies till year-end, with analysts such as  MUFG projecting a peak of RM3.70 to the US dollar. 

“A ringgit-based buyer today requires significantly less capital to acquire the same Australian asset compared to five years ago. This difference alone can equate to several years of rental income or materially lower leverage, while mitigating the effects of currency fluctuations on loans for newly-built homes and vacant land,” said Knight Frank Penang's Australian properties associate director Jenny Neoh Channing. 

Sustained interest

Malaysia comprised the ninth largest source of foreign investment into residential land in  Australia, amounting to A$111.6mil (RM308.5mil) from July 2023 to June 2024,  according to the Australian Tax Office’s latest Register of Foreign Ownership of Australian  Assets report. 

Domestic interest in Australian properties is driven by Malaysia’s close ties with the APAC  nation. The Australian Bureau of Statistics' latest census registered 165,616 Malaysian-born residents as of 2021, backed by substantial migration flows. 

“The latest migration data reveals a significant surge in confidence. Between January and  September 2025, Australia saw a record-breaking 415,760 net permanent and long-term arrivals – the highest in history for that period. This reflects a 6% increase over the previous record set in 2024. For Malaysian investors and property seekers, these numbers aren't just statistics: they are proof of a robust, welcoming economy,” said Neoh. 

Australia also continues to attract Malaysian students, with over 13,000 enrolled in Australian institutions in 2025. A 9% increase is targeted for international students in 2026, following the  Australian Government’s designation of Southeast Asia as a significant priority region. 

BTR developments maturing as asset class 

Incoming foreign investment into new dwellings was focused in Victoria, New South Wales and  Queensland. This concentration underscores positive liveability and residential property growth in cities such as Melbourne and Sydney, which have consistently achieved top 10 rankings among worldwide liveability studies.  

Here, build-to-rent (BTR) projects are maturing as an asset class, comprising large-scale professionally managed developments purpose-built for long-term rental, rather than sale.  According to Knight Frank’s Australia Horizon Report 2026, 4,660 BTR units were delivered across the country in 2024, with 6,000 units estimated in 2025 and 4,000 forecast for completion in 2026. 

“With multiple global and local groups eager to build out a BTR platform to take advantage of  Australia’s structural undersupply of rental accommodation and demographic tailwinds, we anticipate that BTR developments will continue to perform as a segment, while easing ongoing housing shortage concerns,” said Neoh. 

While currency growth and macroeconomic factors align to present an attractive entry point into Australian properties, prospective foreign purchasers must contend with a tighter tax and regulatory environment to safeguard their investments. 

These include the temporary ban on foreigners buying existing homes introduced in 2025, as well as stricter Foreign Investment Review Board oversight and fees, higher stamp duty costs, a  15% withholding tax for non-residents, and annual land tax and absentee surcharges. 

“Despite recent policy changes, due compliance will allow Malaysians to leverage on Australia as an investment haven, given its economic and political stability, population growth, low vacancy rates and high rental demand,” added Neoh. 

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