Local residential investment interest remains resilient
KUALA LUMPUR: Interest in residential investment remains resilient in the local property market despite movement restrictions due to the Covid-19 pandemic, according to Knight Frank Malaysia.
Its managing director Sarkunan Subramaniam referring to the company’s ‘Wealth Report: Asia-Pacific Perspective’ said the trend is backed by wealth growth in Malaysia which showed a healthy increase of eight per cent from the year 2015 to 2020.
“Despite the decrease of 8.3 per cent 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 per cent in the growth of wealth for Malaysians, specifically high-net-worth-individuals (HNWI) in the upcoming five years,” he said in a statement.
Knight Frank’s survey found that global response to the pandemic has supported the wealthy, prompting a real estate and investment behavioural shift.
The low-interest-rate environment, increase in fiscal stimulus, and surge in asset prices have resulted in the world’s ultra-high-net-worth population increasing by 2.4 per cent higher over the past 12 months.
The Knight Frank Wealth Sizing Model also predicts that the global population of the ultra-high-net-worth will grow over the next five years with Asia emerging as the fastest growth in UHNWI at 39 per cent compared to the 27 per cent global average, while the number of millionaires is forecast to rise by 41 per cent.
Through that, the upsurge of interest for post-pandemic investment has increased significantly to 76 per cent, said the independent real estate consultancy.
Due to global uncertainty caused by Covid-19 pandemic, it also said there has been change in strategy for the ultra-wealthy, with many planning to invest in additional homes domestically, followed by second homes in cities and countries that fit their requirement and lifestyle in the new normal. — Bernama
Despite the decrease of 8.3 per cent 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 per cent in the growth of wealth for Malaysians, specifically high-net-worth-individuals (HNWI) in the upcoming five years. Sarkunan Subramaniam