Demand for prime properties soars as HNWIs increase in Malaysia

KUALA LUMPUR: Amid the global trend of rising wealth, the growing number of high-net-worth individuals (HNWIs) in Malaysia is driving increased demand for luxury real estate and prime commercial properties, according to Knight Frank’s Wealth Report. It’s a trend that is reshaping the local real estate market, said Knight Frank associate director Dominic Heaton-Watson.

According to the report, HNWIs worldwide increased by 4.4 per cent last year, with North America leading at 5.2 per cent, followed by Asia at 5 per cent. Africa recorded a 4.7 per cent rise, while Australasia saw 3.9 per cent growth. The Middle East, Latin America, and Europe also reported smaller but steady gains.

Malay Mail reported that Malaysia is one of the key markets benefiting from this trend, with more wealthy investors buying luxury homes and commercial properties in Kuala Lumpur. Penang and Johor Bahru are also seeing more interest in industrial and hospitality properties.

Private capital has driven Malaysia’s commercial real estate market, with institutional investors putting large sums into offices and logistics properties.

Knight Frank Malaysia’s group managing director Keith Ooi said more strategic acquisitions are expected as the economy steadies and borrowing costs drop, especially in key cities like Kuala Lumpur, Penang, and Johor Bahru.

As HNWIs diversify their portfolios, more money is expected to flow into Malaysia’s office, logistics, and hospitality sectors, strengthening its position as an investment hub.

The government has supported this growth through tax incentives in the Forest City Special Financial Zone (FCSFZ), with some commentators suggesting last year that it could turn Johor into a financial hub. /TISG

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