Stronger ringgit opens door for Malaysians investing in Australian property

KUALA LUMPUR: A STRONGER ringgit is creating new opportunities for Malaysian investors eyeing the Australian property market, despite a temporary ban on foreign purchases of existing homes until 2027, according to Knight Frank Malaysia.

Trading at RM2.75 to the Australian dollar (AUD) s of Feb 24, from a high of RM3.18 in July 2024, the trend primarily benefits purchasers with ringgit-denominated loans, the firm said.

Although the ringgit has edged slightly weaker in recent weeks to about RM2.78 per AUD, it remains at relatively favourable levels, continuing to support outbound investment and property acquisitions in Australia.

"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 Jenny Neoh Channing, associate director, Australian Properties, Knight Frank Penang.

Malaysia comprised the ninth largest source of foreign investment into residential land in Australia, amounting to AUS$111.6 million 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 6.0 per cent 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 9.0 per cent increase is targeted for international students in 2026, following the Australian government's designation of Southeast Asia as a significant priority region.

Neoh said that 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 per cent withholding tax for non-residents, and annual land tax and absentee surcharges.

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