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.