Interest In Local Residential Investment Remains Resilient

April 16, 2021

Interest In Local Residential Investment Remains Resilient

Despite the movement restrictions brought about by the COVID-19 pandemic. interest in local residential investment continued to be resilient.

The trend is backed by wealth growth within Malaysia, with the country registering an increase of 8% from 2015 to 2020, said Knight Frank’s Managing Director Sarkunan Subramaniam, citing the firm’s “Wealth Report: Asia-Pacific Perspective”.

“Despite the decrease of 8.3% from the year 2019 to 2020 that was possibly caused by the uncertainties during the pandemic period, we foresee there will be a significant recovery of 36% in the growth of wealth for Malaysians, specifically high-net-worth-individuals (HNWI) in the upcoming five years,” he said as quoted by Bernama.

Knight Frank’s survey showed that the global response to the COVID-19 pandemic supported the wealthy, prompting an investment and real estate behavioural shift.

With the low interest rate environment, surge in asset prices and increase in fiscal stimulus, the world’s ultra-high-net-worth population rose 2.4% in the last 12 months.

Moreover, the Knight Frank Wealth Sizing Model expects the global population of ultra high net worth individuals (UHNWIs) to grow in the next five years. Asia is forecasted to register the fastest growth in UHNWIs at 39%, up from the global average of 27%, while the number of millionaires is projected to increase 41%, reported Bernama.

Through that, the upsurge in interest for post-pandemic investment significantly increased to 76%, said Knight Frank.

The global uncertainties caused by the pandemic also prompted the ultra-wealthy to change their strategy, with many intending to invest in additional residential properties domestically, followed by second homes in countries and cities that suit their lifestyle and requirements in the new normal.

 

Have a question about the property market? Post them on AskGuru and let our experts help you!

POST COMMENT

You may also like these articles

Continuing To Serve You As Malaysia's No.1 Property Website

 In this edition:In our previous article, and as reported in Yahoo! news, we celebrated our milestone of becoming Malaysia's new No. 1 Property Website together with you. Today, we're p

Continue ReadingMarch 31, 2021

REHDA Survey: Property Developers Hopes Govt To Extend HOC to December 2021

Property developers are hoping the government to extend the Home Ownership Campaign (HOC) to December this year in order to accelerate the recovery in the property market, said Real Estate & Housi

Continue ReadingMarch 31, 2021

Bursa Malaysia’s Property Index Hit One-Year High Despite Weak Market Sentiment

Despite the weak sentiments on the property market, Bursa Malaysia’s Property Index climbed to a one-year high of 788.15 points on Wednesday (7 April).The property index has been registering steady

Continue ReadingApril 9, 2021

NAPIC Expects Property Market To Rebound In H2 2021

The National Property Information Centre (NAPIC) expects the property market to witness a soft upturn in the second half of 2021, with recovery mainly dependent on the economic and financial outlook o

Continue ReadingApril 13, 2021

Feedback