Asia-Pacific Cross-Border Residential Property Buying
Trends Report: Q1 2024
INTRODUCTION
The Asia-Pacific Cross-Border Residential Property Buying Trends Report for Q1 2024 analyses international real estate investment trends in the region. Asian buyers are leading the post-pandemic surge in cross-border transactions, and this report highlights top destinations and source markets.
Australia is the top choice for Asian investors. Canada and the United States remain popular, and Southeast Asian markets like Vietnam, Indonesia, and the Philippines are also on regional buyers’ top-10 list.
• Australia’s Strong Appeal: Australia is a top destination across multiple Asian countries and a focal point for Asian residential real estate investment due to its proximity, lifestyle, large immigration intake, and educational opportunities.
• Variety in Preferences: While Australia, Canada, and the United States are popular with Asian buyers, these buyers also show strong interest in the United Kingdom, Japan, and emerging markets in Southeast Asia.
• Top Buyer Source Economies: Mainland China, Hong Kong, and Malaysia are the sources of the greatest number of outbound buyer enquiries, making these the most important markets for property vendors.
TOP FOREIGN BUYER TARGET MARKETS
Australia’s Leading Position
Australia is the top destination for foreign buyers from mainland China, Hong Kong, Malaysia, and Thailand. Its stable and attractive real estate market appeals to Asian investors due to its strong economy, high quality of life, and favourable investment conditions.
Most buyers are in fact, not outright, investors, but purchasing for a combination of their own use and investment purposes. Relatively high purchasing and holding costs for non-residents make pure investment less attractive than in prior years. Australia’s large annual intake of overseas students and migrants helps create new demand for purchases. As the federal government limits foreign students with a goal of cutting net overseas migration, this could weaken.
Consistent interest in Australian residential property underscores the country’s strategic position in the Asia-Pacific real estate market and its future growth potential.
Canada’s Consistent Popularity
Canada is a preferred destination for buyers from mainland China (ranked second) and Hong Kong (ranked fourth). This reflects Canada’s reputation as a welcoming and secure environment for migrants and students from Asia. Despite Canada’s ban on foreign buyers, enquiries come from families planning to move there with existing residency or citizenship.
The country’s stable economy, high quality of life, and strong educational institutions make it attractive. Canada has diverse property options and a transparent legal system, providing confidence to investors. This consistent popularity highlights Canada’s enduring appeal and potential for continued growth in the real estate market.
United States Remains Major Destination
The United States remains a prominent destination for buyers from Hong Kong (ranked third) and mainland China (ranked fourth), although it no longer holds, it’s warmer rank as the single most popular destination for these buyers. Its large market, economic opportunities, migrant intake, educational sector, and diverse property offerings drive this interest.
The U.S. will have a permanent position as a top market for international residential real estate investors. And, the country offers these buyers a range of markets, from relatively inexpensive and high yield southern cities, to more expensive and longer established markets on the coasts.
Emerging Destinations
Countries like Vietnam, Indonesia, and the Philippines are becoming notable destinations for Asian real estate buyers. Vietnam is attracting attention due to its rapid economic growth, favourable investment climate, and infrastructure investment program. Its vibrant property market oers diverse opportunities for investors seeking high returns at a relatively low cost, even by Asian standards.
Indonesia, with its large population, economic development, and growing middle class, presents significant potential for real estate investment, although it has not yet moved into the first rank of buyer destinations. The country oers a range of options for oshore buyers, from beach villas that can serve as income producing vacation homes, to urban investments in Jakarta, one of the world’s great cities.
The Philippines is also drawing interest with its robust economic growth and more than US$33.3 billion of annual remittances that help support local property prices. The government’s investments in new infrastructure and creating a business-friendly environment also contribute to its attractiveness. Like Indonesia, in the Philippines investors may choose from beach properties and urban apartments.
Regional Preferences
Mainland China buyers show notable interest in the United Kingdom, ranked third, and Japan, ranked fifth. The UK’s strong economy, stable property market, and cultural appeal make it attractive. Japan’s safe environment, advanced infrastructure, and unique lifestyle oerings also draw Chinese buyers.
Hong Kong buyers favour Thailand, ranked second, and Vietnam, ranked sixth. Thailand’s aordable property prices, tropical climate, and welcoming policies for foreign investors are key attractions. Vietnam’s rapid economic growth and emerging real estate market make it an appealing option for Hong Kong investors seeking new opportunities.
Singapore buyers prefer nearby countries like Malaysia, ranked second, and Vietnam, ranked third. Malaysia’s close proximity, cultural similarities, and favourable investment conditions make it a top choice. Vietnam’s dynamic market and economic potential continue to attract Singaporean buyers looking for profitable investments.
These regional preferences highlight the diverse interests of dierent categories of Asian buyers, which helps explain their widespread activity across the globe.
TOP CROSS-BORDER BUYER SOURCE COUNTRIES
Buyers from Mainland China acquire more overseas real estate than any others, because of its large population, desire for diversification from limited domestic investment opportunities, and cultural preference for property investment. China is also the most populous country in the world and the second largest economy.
Hong Kong, China ranks second, showcasing its active participation in the global real estate market despite its relatively small size. This high activity level indicates a robust interest in securing properties abroad and the flow of a significant amount of capital from the mainland.
Malaysia ranks third, demonstrating the growing buying power of Malaysian consumers and their increasing interest in cross-border property investment.
Thailand is the fourth ranked source of outbound buyers. Singapore is ranked fifth, although Singapore would likely rank higher by investment value because of the greater purchasing power of its consumers.
SPECIAL FOCUS: MALAYSIA
Malaysia plays a growing role in the cross-border property market, as an attractive destination for foreign investors and —increasingly— also as a source of outbound buyers active in other markets
Malaysian investors are the third most-active buyers of overseas property among the Asian locations we have looked at in this report. Their top destinations are Thailand, Australia, and Vietnam.
Several key factors contribute to this interest in buying overseas real estate. Economic growth and a rising middle class have increased disposable income, enabling more individuals to invest internationally. Malaysians seek to diversify their investment portfolios by acquiring properties abroad. Many invest in countries with high-quality education systems and superior lifestyle amenities, such as Australia and the United States.
A Popular Destination
Malaysia is a popular destination for foreign investors. It is the second most popular destination for buyers from Singapore, sixth for Hong Kong buyers, and seventh for buyers from mainland China.
The factors driving foreign buyer interest in Malaysian residential real estate include the country’s strategic location, significant new infrastructure projects, favourable investment climate, reasonably high yields, and the appeal of its diverse property market.
Increased Affordability for Regional Buyers:
Over the past two years, Malaysian property has become more affordable to many of its most active overseas buyers due to the appreciation of overseas currencies.
Chinese buyers are the most active from among our Asian cohort. The ringgit has remained better than even against the Chinese yuan (with the yuan losing one percent against the ringgit over the past two years).
However, the ringgit has lost value against the Hong Kong and Singapore dollars. Hong Kong dollar has appreciated by 10%, and the Singaporean dollar by 13%, over the past two years against the Ringgit. On a MYR 2 million home, that appreciation gives buyers from those countries the equivalent of discount worth at least a MYR 200,000.
As we will see in an upcoming report from Juwai IQI, Malaysia’s educational system is becoming increasingly competitive on the global stage, and this also is a pull-factor that attracts some international buyers to the country.
— end of press release —
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