Overcrowding in rural property China market has prompted overseas buyers to look to other countries in south-east Asia, according to Property Frontiers.

Foreign buyers are increasingly looking to the likes of Thailand and Malaysia, which are dependant on the Chinese economy, but are not as restricted in terms of foreign investment....

Overcrowding in China's property market has prompted overseas buyers to look to other countries in south-east Asia, according to Property Frontiers.

Foreign buyers are increasingly looking to the likes of Thailand and Malaysia, which are dependant on the Chinese economy, but are not as restricted in terms of foreign investment.

Spokeswoman Marsha Lu said that China was a very successful destination for overseas investors last year, but economic and political manoeuvres effectively shut down the market.

"China's currency value was increasing, so the central bank had lots of pressure on maintaining the value of Chinese currency," she said.

"Therefore, they actually issued seven regulations last year to try to slow down foreign investment."

However, buyers interested in Thailand or Malaysia need to be "quite cautious" and make efforts to understand the political situation in these countries before making a long-term commitment.

Earlier this month, Thailand scrapped the majority of capital controls that were imposed in December. However, investors have been asked to take hedging measures to avoid profiting from fluctuations in the currency.