Mainland Chinese groups have emerged as the top property investors in Malaysia, with US$2.1 billion (RM9.25 billion) of completed transactions over the last three years.

Singapore's Financial Times reported that this was in comparison with US$985 million (RM4.34 billion) invested by Singaporean companies over the same period.

The report quoted figures from Real Capital Analytics, which was based on completed transactions of US$10 million and above.

According to the report, Malaysia emerged as a favoured destination for mainland Chinese investors seeking a cheaper alternative to Australia and Hong Kong.

It further stated that Singapore has traditionally been one of the biggest outbound real estate investors in Asia and the biggest foreign investor in Malaysia, but China has stepped up its investment at a time when warmer political ties between Beijing and Kuala Lumpur have eased commercial relations.

"The Chinese investor today has a lot more options and has become more comfortable going to Europe and the US, but not everyone has the same options - Malaysia is much more affordable," said Sigrid Zialcita, managing director of Asia-Pacific research at Cushman & Wakefield.

"If you compare prices, even between Malaysia and China, you are looking at a significant difference," she is quoted as saying.

Among others, FT cited property prices in Chinese cities such as Beijing, Shanghai and Shenzhen as currently being some of the most expensive in the world.

The rise in Chinese investments in Malaysia's property market can be seen across the causeway from Singapore, where the Forest City development project is being built on 1,400ha of reclaimed land.

Project developer Country Garden had previously said the first phase of apartments at Forest City, marketed almost exclusively to buyers from China, will be completed by the end of this year.

Reports of capital control imposed by China, however, have raised concerns over viability of payments to be made for the properties.

The FT report also noted that close economic ties between Malaysia and China were underlined this week when online trading giant Alibaba Group announced it would set up a regional logistics hub near Kuala Lumpur airport.

The logistics hub was a part of a digital free trade zone launched by Prime Minister Najib Abdul Razak and Alibaba founder Jack Ma.

Globally, China’s overseas investment in residential, commercial and industrial property reached a new high last year with a recorded total of US$33 billion (RM145.6 billion), according to real estate group JLL.

From the figure, the US was the most popular destination for investment, with US$14.3 billion (RM63.1 billion), followed by Hong Kong, Malaysia and Australia, while the UK was in fifth place.