Why is UK property popular among Malaysian investors?

Being part of a Commonwealth country, Malaysia shares a deep connections with the United Kingdom. With many of its social, governance, legal and academic frameworks inherited from the British, many Malaysians are able to resonate with the UK and some of its practices left behind. Apart from the historical past, Malaysians are always on the look-out of potential investments offshore and we will discover some interesting facts on what makes London / UK properties a popular investment choice for Malaysians.

Shared history & new ventures

Malaysia’s pre-independence history as a British colony has provided Malaysia its present-day legal and financial framework. Many politicians, including a few former Malaysian Prime Ministers, have UK education backgrounds from prestigious universities such as University of Cambridge and Lincoln’s Inn. This historic bond and friendly bilateral relations are realised by both side political leaders in all aspects in trade, business, investments and many more.

There is also high interest from Malaysian based development and institutional investment companies in London property developments, quite notably the regeneration of The Battersea Power Station development jointly undertaken by SP Setia, Sime Darby & EPF, as well as more boutique London developments undertaken by Gamuda Land Berhad.

Culture, Lifestyle & Status

Whether it’s the railway engineering, fashion trends or sports, Malaysians are exposed to most of these as early as their childhood years, from the highly organised marching bands and the passion for football and badminton were introduced to Malaya by the British. It is also interesting to note that Britain’s royalty had an affinity for Malaysian-born designers, who have made a name for themselves in the fashion world, with Jimmy Choo made famous by Princess Diana, fashion designer Han Chong who owns Self-Portrait was made famous by Duchess Kate Middleton.

From BOH tea plantation to Pos Malaysia, Paddington bear to Harrods, London Bridge nursery rhyme or Mr Bean shows, these names are all too familiar to many Malaysians and have a special place in their hearts. Owning a property in London / UK signifies a status symbol for many Malaysians.

UK education

UK education have always been sought after by Malaysians as it has access and recognition to global higher education, apart from that, many professional courses and practices are also recognized in Malaysia, especially in skilled / professional practices such as medical, law, finance and engineering industries. Some UK universities, such as Nottingham University, University of Reading and Epsom College, have branches in Malaysia, on top of many other UK twinning programmes with other top education institutions within the country. Owing to this academic exchange, many Malaysian parents send their children to esteemed London / UK schools or universities for better education, with Malaysian students within the top 10 sending foreign student to the UK in 2023, according to report by Studying-in-UK.org.

Strong rental demand & access to financing in multiple currencies

As many Malaysians seek London / UK properties to satisfy their housing needs, it is also proven to be a safe investment asset for Malaysians. As we share similar property ownership laws, and the UK’s strong tenancy laws which provide check and balance for both landlords and tenants, as well as mortgage accessibility from global financial institutions to fund the purchase/investment, allows many Malaysians access to invest in London / UK properties.

Apart from UK’s financing institutions, there are also Malaysian banks who are able to finance the purchase in MYR, this allows many Malaysians afford to purchase a second-home in London. The strong rental market in London also helps with financing & holding cost, allowing to rent the property out when their children is not living in it or when it is not in used.

Wealth Preservation & Diversification

Malaysian investors who are concerned about devaluation of monetary value, especially the Ringgit’s strength in the global market, are attracted and motivated to diversify a small portion of their investment offshore. Investment in UK / London property is considered to be a safe method, which can be used to satisfy the family needs or as an investment asset, which can also be passed down to future generations.

Certain areas in London / UK are in high demand owing to redevelopment activity, which significantly improve infrastructure and connectivity between cities in the UK, spurring local demand. Some of these developments are located in regeneration areas which allows room for capital growth, hedging against inflation while waiting for transformation to take place.

Whatever the motivation or intention is, London / UK properties have always been a sought-after asset class for many Malaysians. For those who are looking to explore buying first time, or have owned, sold or building a portfolio, please reach out to us if you’re interested to know about buying procedures, ownership structures, investment hotspots, policy changes, financing options, after sales services, tax returns or others, our multi-lingual team are able to assist or guide you.

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