Malaysia on international luxury homebuyers’ radar screen

A study of the world’s most affluent households by Luxury Portfolio International® (LPI) revealed that Malaysia is among the destinations in Asia that international luxury homebuyers are interested in.

Malaysia accounts for two per cent of the interest from international luxury buyers, the same as Japan, Singapore, Bali (Indonesia), and the Islands of Tahiti.

China, including Hong Kong and Taiwan, accounts for six per cent of the interest from international luxury buyers.

LPI is the luxury arm of Leading Real Estate Companies of the World®, the largest global network of residential real estate firms.

The study showed that Hawaii is the top destination among international luxury homebuyers, with one in five or 20 per cent seeking a residence in the tropical Aloha State.

It is the most popular destination by a significant margin, with the continental United States (eight per cent), France (six per cent), China (six per cent), New Zealand (five per cent), Mexico (four per cent), Greece (three per cent) and Canada (three per cent) completing the top destinations globally.

The study further revealed the primary reason for purchasing overseas is to have a better quality of life (75 per cent), followed by the investment potential from owning in the chosen country (69 per cent).

At least 58 per cent are opting for locations that offer the flexibility they may not currently enjoy, such as land ownership or a second passport.

The research also revealed proximity to city or town neighbourhoods is less important for international luxury homebuyers. They are most interested in homes close to nature, by the ocean, or in a resort community, with a lake or river view considered the most attractive.

The median projected spend among luxury buyers for their next home is US$2.75 million, with 28 per cent spending some US$5 million.

From a regional standpoint, with Hawaii as exponentially the most desired destination, the U.S./America and Caribbean account for 37 per cent of the interest from international luxury buyers, followed by Europe and the Middle East at 29 per cent, and Asia at 18 per cent.

“In Hawaii, we’re currently seeing a market that’s unlike anything we’ve ever experienced in the history of the State,” said Matt Beall, chief executive officer and principal broker of Hawaii Life Real Estate, an affiliate Member of LPI.

Beall said the firm continues to watch as inventory drops to record lows, with some markets now being down to only a month’s worth of supply.

LPI president Mickey Alam Khan said Hawaii tops the list for international property buyers and there are reasons to believe why.

“The islands boast pristine beaches, lush tropical greenery, and incredible year-round temperatures. Our report shows affluent buyers are interested in regions which provide for their needs (such as) great entertainment as well as an investment opportunity and lifestyle enrichment,” he said.

He said that in Hawaii, in terms of where international buyers are coming, Japan is at the top of the list, followed by Korea and then Singapore, while Canadian buyers continue to show strong interest in Maui and the west side of the Big Island.

“Overall, when the market fully opens up in the wake of the coronavirus pandemic, we expect to see additional buyers, further fueling an already red-hot market,” he said.

International luxury home buyers’ wish list for their new home matches modern needs for working, living, and playing at home, heightened by the pandemic over the last 12 months.

At the top of the list is excellent broadband speed and plenty of space, as well as a good quality leisure and entertainment facilities.

Investment properties are among the most popular reasons for purchasing a home (27 per cent) as well as a holiday residence.

Buyers have also indicated they are most interested in a single-family residence that is relatively new — preferably built within the past five years.

Source: NST