Knight Frank Malaysia’s group managing director Keith Ooi said there has been a notable shift in investor sentiment with the living sector topping the investor wishlist for the first time in four years.

KUALA LUMPUR (March 14): Malaysia has come third among selected Asian countries to witness significant growth in its population of ultra-high-net-worth individuals — those with a net worth of US$30 million (RM140.43 million) or more — from 2023 to 2028, according to global real estate consultancy Knight Frank.

Based on Knight Frank's wealth sizing model, Malaysia is projected for a substantial 34.6% growth in the population of ultra-high-net-worth individuals. India has led the list with 50.1%, followed closely by China at 47%.

Other Southeast Asian regional peers which are included in the analysis are Indonesia with a growth rate of 34.1%, Vietnam at 30%, Singapore at 15.7%, and Thailand at 14.7%.

“With the mobility of wealth increasing all the time, a key question is whether future growth remains within these and other high-growth markets, or whether there is a leakage of talent to Europe, Australasia or North America,” said Knight Frank in its latest wealth report.

The wealth sizing model, created by Knight Frank’s data engineering team, measures the size of high-net-worth individuals (whose net worth hits US$1 million or more), ultra-high-net-worth individuals, and billionaire cohorts in more than 200 countries and territories.

Globally, Knight Frank expected the number of wealthy individuals to rise by 28.1% during the five years, with Asia leading the growth.

“Outside Asia, strong growth is focused on the Middle East, Australasia and North America, with Europe lagging and Africa and Latin America likely to be the weakest regions,” it added.

The global rate of expansion, while positive, remained relatively slower than the 44% increase during the five years leading up to 2023.

It said the global economy will likely be impacted by higher inflation in the medium term, leading to a lower growth outcome compared to the historical trends.

Delving into Asia’s real estate landscape, Knight Frank’s head of Asia-Pacific research Christine Li pointed out that Southeast Asia, especially Thailand and Malaysia, has fallen out of favour with Chinese buyers.

She said Chinese buyers have become much more selective following the slowdown in consumer and investor confidence due to the liquidity crisis in China’s property companies.

“In contrast, Japan and UAE have seen increased Chinese purchases, while Australia maintains its position as the top choice for overseas property purchases,” she added in the report.

Touching on the Malaysian front, Knight Frank Malaysia’s group managing director Keith Ooi said there has been a notable shift in investor sentiment with the living sector topping the investor wishlist for the first time in four years.

“This surge in interest resonates globally, with strong investor enthusiasm emanating from Europe, the Middle East, North America, and Asia, signifying a remarkable opportunity for Malaysia's real estate sector to attract diverse investment,” he said in a statement on Thursday.