Why it’s high-time for Malaysian investors to explore global luxury properties

Seoul and Manila are leading growth in luxury property prices.

According to Knight Frank’s latest Wealth Report, cities such as Seoul (18.4%), Manila (17.9%), and Dubai (16.9%) are leading global growth in luxury property prices. As these trends unfold, Malaysian investors have a prime opportunity to diversify their portfolios by exploring international property markets, capitalizing on both capital appreciation and rental yields.

“With the ringgit remaining stable and Malaysia’s high-net-worth individuals accumulating greater wealth, now is an ideal time to consider global real estate investments,” said Enoch Khoo, Managing Director of Knight Frank Property Hub. “Prime locations in cities such as London, New York, and Sydney continue to offer strong returns, supported by limited supply and sustained demand.”

Here’s more from Knight Frank:

Global Trends Driving Luxury Property Prices  
A key driver behind rising luxury residential prices globally is the persistent imbalance between supply and demand. Major cities face ongoing shortages of new and existing prime properties, pushing values higher. This supply constraint, combined with evolving lifestyle trends and increasing demand for wealth preservation through real estate, presents an attractive opportunity for Malaysian investors seeking stable, high-value assets abroad.  

Limited Supply Continues to Push Prices Higher  
Dominic Heaton-Watson, Associate Director, International Residential at Knight Frank Property Hub, commented “On the supply side, a lack of new-build inventory is notable in many global residential markets. Supply-chain constraints, higher build-cost inflation and wage hikes have all conspired to reduce the number new luxury projects being delivered in the short-term”.

To take central London as one example, developer new-build construction activity is currently running 25% below the 10-year average.

“This reduced pipeline of luxury developments is expected to keep property values resilient, especially in tier-one global cities where Malaysian investor appetite remains strong”, added Heaton-Watson.

Investment Value and Wealth Preservation 
Despite rising prices, Malaysian buyers can still find value in select markets. Adrian Yeoh, Executive Director, International Projects at Knight Frank Property Hub, noted: “Dubai remains one of the most attractive destinations, offering significantly more space for the same investment compared to other prime global cities. For instance, US$1 million secures approximately 78 square meters of luxury real estate in Dubai, considerably more than in Hong Kong, Singapore, or Geneva.”

This affordability factor, coupled with zero capital gains tax and strong rental demand, makes Dubai a preferred destination for investors seeking passive income and long-term capital appreciation.  

Guidance for Malaysian Investors 
As affluent investors continue to seek wealth preservation strategies despite high borrowing costs, prime international residential properties remain a resilient asset class. With changing interest rate environments and shifting geopolitical landscapes, it is crucial for investors to make informed decisions.

Knight Frank Malaysia encourages investors to seek expert guidance in navigating today’s dynamic global market. Our experienced advisors can provide insights into market entry strategies, financing options, and tax considerations to maximize investment returns.