Malaysians are still interested to invest in London properties even amidst the Covid-19 pandemic.
Knight Frank Malaysia international residential project marketing associate director Dominic Heaton-Watson opined that London’s broad-based economy, transparent legal system, culture and heritage and world-class education facilities were the reasons why London continues to be Malaysia’s top overseas property investment destination despite the global health and economic crisis.
“I have seen Malaysia-based clients become even more focused on their future London property requirements with lockdown perhaps allowing time to re-evaluate and fine-tune their exact criteria,” he said in a statement.
Despite movement restrictions imposed due to Covid-19, the super-prime property market in London is seeing more purchases of properties priced above £10 mil in 2020 as compared to 2019.
According to Knight Frank’s Super-Prime Market Insight – Autumn 2020, a total of £1.13 bil was spent on London super-prime properties from January-August.
This is a 16% increase from the £977.5 mil reported for the same time period last year.
In the first eight months of the year, 56 super-prime deals were transacted, compared to 57 deals last year.
Due to travel restrictions, a higher proportion of these super-prime exchanges in 2020 involved British buyers.
The report said that in the first eight months of the year, the proportion of British buyers was 40%, the highest such figure over the last decade.
Heaton-Watson said the 16% year-on-year (Y-o-Y) increase corresponds with the higher levels of enquiries from its Malaysia-based clients.
Knight Frank global head of prime Paddy Dring said the key motivators of capital preservation, the UK education system and cheap debt were unchanged.
“The trend for more outdoor space has benefitted suburban and country markets but buyers are retaining a London investment for the long-term.
“Prices are robust with single-digit percentage discounts but no more,” he said.