KUALA LUMPUR, March 16 — A 2,142 square feet luxury property in Malaysia cost RM4,173,450 (US$1 million), based on current prime residential prices, according to The Wealth Report 2016.
The report, compiled by global property consultancy firm, Knight Frank, said with the same amount, luxury properties can be purchased in major cities throughout the world.
“For example in New York, a luxury property of 290.626 sq. ft can be bought for one million US dollars while in Hong Kong at 215.278 sq. ft, Singapore at 452.084 sq. ft, Tokyo at 893.405 sq. ft and Cape Town at 2,744.8 sq. ft.
Knight Frank Asia Pacific Head of Research Nicholas Holt said in the past 10 years, the huge growth in wealth and its movement around the globe has helped to fuel the property market.
“Political risk, diversification, safe haven flows, education and lifestyle have all been key drivers.
“Despite the sharp decrease of 15% in the number of Malaysian ultra-high-net-worth-individual (UHNWIs), property remained an important element of their portfolio.
“Malaysians ultra-rich own more properties on average 4.7 compared to the Asian average of 3.92 and the global average of 3.7,” said Holt recently.
He said Malaysia’s UHNWIs showed the biggest appetite for property assets in Asia with a 65% increase and forecast for a similar growth in the decade to come.
“This is followed by Singapore with 61%, Australia with 58% and China with 53 per cent for the past 10 years.
“This year, despite global challenges, 39% of Malaysian UHNWIs are considering residential purchase compared to the 29 per cent of UHNWIs worldwide,” Holt said.
Meanwhile, Knight Frank Malaysia Managing Director Sarkunan Subramaniam said the ultra-rich Malaysians continued to invest in such properties as it had given them excellent returns in the last 10 years.
This trend is expected to continue in the next decade.
“Besides London and Singapore, the top choice of Malaysian ultra-rich for residential properties was Australia which offered education, employment, favourable exchange rate for the ringgit and good returns on property investment,” he said.