News & Articles M'sians high on list of real estate investors overseas
M'sians high on list of real estate investors overseas
9 Nov 2015
Malaysians are among the top from Asian countries investing in real estate in western mature markets, a study found.
This despite their home capital of Kuala Lumpur identified as one of the top five locations with potential to become a future global city, according to real estate firm Knight Frank's ‘Global Cities: The 2016 Report’.
The report found that capital outflow from Malaysia in this sector went up over the last two years, partly driven by investors wanting to diversify their real estate portfolio overseas.
“The last two years have seen a tremendous surge of capital, emanating from Asia, targeting real estate assets in mature western markets,"" said global property consultancy Knight Frank head of research for Asia Pacific Nicholas Holt, in the report released last week.
The study found Malaysia among Asian countries that have been targeting core real estate assets in Western markets, including in the United States, United Kingdom, Australia, and continental Europe, with total investments amounting to US$78.4 billion (RM342.54 billion).
From the third quarter of 2013 until the second quarter of this year, Malaysian investments in the UK totalled US$2.23 billion (RM9.75 billion), Australia (US$1.37 billion, or RM5.99 billion), continental Europe (US$1.03 billion or RM4.50 billion), and US (US$1.01 billion or RM4.41 billion).
Part of the trend is attributed to a strong desire from Malaysian investors to diversify their wealth into overseas markets, particularly in Australia.
“This has largely been driven by the value of the Malaysian ringgit relative to the AUD which has weakened 6.6 percent versus 24 percent relative to the pound,” said Knight Frank Malaysia Capital Markets executive director James Buckley.
LRT, MRT expansion a plus
On factors influencing domestic growth, Holt said the level of infrastructure in a market is a useful indicator for its potential development, as well as a comparison guide among neighbouring countries.
“Despite the slowdown of China and its impact on the region’s economies, the Asia Pacific region will still see relatively strong economic growth over the coming years.
“Coupled with the huge forces of urbanisation in India and China, the next three years are still very much a growth story for the Asian global cities,” he added.
Taking into account ongoing expansions of the LRT and MRT lines until the year 2022, the study ranked Malaysia at 10th position out of 14 cities in Asia, with 9km of metro line provided per million residents.
This was in comparison to Seoul, South Korea, which tops the chart at 40km per million residents.
The 2016 report examined the market performance of 20 global cities across the world, of which 10 are in the Asia Pacific region.
This despite their home capital of Kuala Lumpur identified as one of the top five locations with potential to become a future global city, according to real estate firm Knight Frank's ‘Global Cities: The 2016 Report’.
The report found that capital outflow from Malaysia in this sector went up over the last two years, partly driven by investors wanting to diversify their real estate portfolio overseas.
“The last two years have seen a tremendous surge of capital, emanating from Asia, targeting real estate assets in mature western markets,"" said global property consultancy Knight Frank head of research for Asia Pacific Nicholas Holt, in the report released last week.
The study found Malaysia among Asian countries that have been targeting core real estate assets in Western markets, including in the United States, United Kingdom, Australia, and continental Europe, with total investments amounting to US$78.4 billion (RM342.54 billion).
From the third quarter of 2013 until the second quarter of this year, Malaysian investments in the UK totalled US$2.23 billion (RM9.75 billion), Australia (US$1.37 billion, or RM5.99 billion), continental Europe (US$1.03 billion or RM4.50 billion), and US (US$1.01 billion or RM4.41 billion).
Part of the trend is attributed to a strong desire from Malaysian investors to diversify their wealth into overseas markets, particularly in Australia.
“This has largely been driven by the value of the Malaysian ringgit relative to the AUD which has weakened 6.6 percent versus 24 percent relative to the pound,” said Knight Frank Malaysia Capital Markets executive director James Buckley.
LRT, MRT expansion a plus
On factors influencing domestic growth, Holt said the level of infrastructure in a market is a useful indicator for its potential development, as well as a comparison guide among neighbouring countries.
“Despite the slowdown of China and its impact on the region’s economies, the Asia Pacific region will still see relatively strong economic growth over the coming years.
“Coupled with the huge forces of urbanisation in India and China, the next three years are still very much a growth story for the Asian global cities,” he added.
Taking into account ongoing expansions of the LRT and MRT lines until the year 2022, the study ranked Malaysia at 10th position out of 14 cities in Asia, with 9km of metro line provided per million residents.
This was in comparison to Seoul, South Korea, which tops the chart at 40km per million residents.
The 2016 report examined the market performance of 20 global cities across the world, of which 10 are in the Asia Pacific region.
Source: Malaysiakini.com