May 03, 2021
If you do your research well and you partner with a good real estate agency firm, having properties abroad can help you diversify your investment portfolio and secure your wealth.
There are plenty of great opportunities in markets overseas, but deciding where to go and what to invest in can be difficult.
Hence, we have selected five top international property investment destinations that still offer huge potential in investing for you to ponder.
UK, especially London is still one of the most popular property investment destinations among Malaysians, despite the uncertainty about Brexit is hampering the market sentiment.
This is because many still believe the country will remain as one of the top global financial centres and more importantly, the British housing market is showing a high level of resilience as driven by strong local demand
As many would know, one of the UK’s biggest issues has been the critical lack of housing — research shows that the UK is facing a shortage of 4 million homes and there is a need to build approximately 340,000 houses a year until 2031 to balance demand and supply.
At present, the construction sector is only able to build 200,000 houses a year. This has been driving housing values across the country, resulting in maintained growth even in the face of Brexit and thus offering opportunities for overseas property investors.
In view of the weakness in GBP recently, it could be one of the best times to invest in the UK housing sector as there are plenty of opportunities for overseas investors to maximise their value for money in the country.
Currently, the pound has depreciated from the previous high of RM7 to around RM5 against ringgit, which makes UK investments more affordable.
Moreover, the UK property market has proven itself as arguably the most stable, high-yielding asset amid the current volatility, offering a more stable and long-term investment alternative for discerning investors.
Vietnam’s economy, and especially Ho Chi Minh City’s, is one of the fastest-growing in the world, averaging at 6% to 7%.
Despite the Covid-19 pandemic that dampened the global economic growth, the country is targeting a gross domestic product growth of 2.0%-2.5% in 2020 and 6.7% next year.
This reflects the resilience in the country’s economy, which bode well for its property industry.
In fact, Vietnam is famous for having some of the best yields in the region, with rental yields ranging between 6% and 8%. Some developers even offer guaranteed yields as high as 8% to 12% for condo-hotels and villas in tourist hotspots, such as Phú Quốc, Nha Trang and Danang.
Furthermore, it is much easier to invest in the Vietnamese property market today. Prior to 2015, foreigners were only allowed to own one condominium unit and for self-dwelling purposes only.
However, with the new Law on Residential Housing (LRH) introduced in 2015, foreigners can buy property by simply having a tourist visa, and buy as many condo units as they want, as long as the number of units in a building is 70% owned by Vietnamese citizens.
Some experts have forecast that the Vietnamese property market is expected to slow down in 2020 due to the pandemic, with prices starting to drop by the end of the year and hitting the bottom by mid-2021, creating opportunities for buyers sitting on cash.
Last but not least, Cambodia is another diamond in the rough for property investors in the region.
This is because the country has been experiencing strong economic expansion over the past few decades.
According to data from the World Bank, Cambodia’s average economic growth was 8% between 1998 and 2018, making it one of the fastest-growing economies in the world. The country’s GDP growth reached 7.1% in 2019, one of the highest in the region.
The country has adopted an open-door policy on foreign investment, which has managed to turn the country into one of the most highly sought-after destinations for property investments among Southeast Asia countries.
Today, foreigners can 100% own a freehold strata-titled property in Cambodia and property prices are still relatively affordable in Cambodia.
The average price of a high-end condominium in the Phnom Penh city centre is about USD 301 psf (RM1,251 psf), lower than the average price of RM2,000 in Kuala Lumpur city centre.
Some of the residential properties in various key areas in the country are offering huge potential in long term value appreciation and yield return. According to some seasoned property investors, there is a good chance that these houses will bring their owners 10% to 15% appreciation per annum plus up to 7% rental yield.
Get independent valuation and professional services
Nevertheless, obtaining an independent valuation and professional services are some of the fundamental parts of any property investment overseas. While these will occur at an additional cost to investors, it is important to remember that any costs are a small price to pay to protect a larger investment.
As one of the most active real estate agencies in the region, PropNex is representing numerous established international developers in bringing their properties and investment opportunities to Malaysia and its regional investors.
The search for your overseas home or investment has never been easier with PropNex. Contact us at +603 7954 2233 or [email protected] to find out more today.