Best Countries For Real Estate Investment In Asia

Asia is a region of diverse cultures, exotic cuisine, and stunning natural beauty. In recent years, it's also become a hotspot for young expats and investors looking to buy property. Whether you're looking to escape the rat race or simply bask in the sunshine, Asia has something for everyone.

Singapore

Local real-world conditions drive the performance of a country's economy, so national statistics are useful for predicting trends in the real-world performance of the real, local economy.

Property investment in Singapore is still widely considered an excellent choice and place as it is a safe country with a stable economy, strong infrastructure, and excellent schools. Singapore also has no natural disasters, making it one of the most desirable places in Asia to live.

If you bought a luxury condo in one Singapore neighborhood ten years ago, your investment has probably increased by at least 20-30% in value.

While Singapore's housing prices are the highest in the world due to its limited land supply, however, there are still affordable new condos for sale in Singapore available.

Upcoming new property development launches in Singapore include The Continuum, a new freehold residential development located at the prestigious District 15 of Singapore's east coast and marine parade. For investors looking for a development that is nearer to nature, Terra Hill is an upcoming property sale located on Singapore's west coast just beside the serene and green Kent Ridge Park.

Bangkok

Bangkok is one of Asia's top tourism destinations. It has been named by many travel guides as one of the top travel experiences in the world.

There are approximately 35 million foreign visitors per year who come to Thailand on average. Therefore, Thailand is usually their first experience with emerging Asian countries.

It's probably no accident that soaring Chinese tourist numbers coincided with record-high condo prices and transaction volumes in central Bangkok. The Thai capital became one of China's most popular destinations for overseas property investors.

Because of its abundance of real estate agents and a fresh influx of foreign investors, Thailand's property market is probably your best option in Southeast Asia.

Also, remember: you're not just buying a property or a condo unit when you buy an offshore one. You hold a stake in the foreign country's local fiat (or crypto currency) too.

Kuala Lumpur

Kuala Lumpur, while often overshadowed by Bangkok, arguably has the most affordable real estate market in Southeast Asia.

Foreigners are allowed to purchase land in Malaysia, which makes it Southeast Asia's only country where nonlocals can legally purchase land under their names.

If you own foreign real estate, you may be eligible for a permanent residence permit under Malaysia My Second Home Program.

You might think that properties in Kuala Lumpur are more expensive than in other cities listed here.

If you want to live in a premium condo in the heart of Kuala Lumpur, you can get one for about $4,000 per square foot. It's cheaper than Bangkok and about the cost of living in Manila.

These factors make Kuala Lampur one of the best Asian destinations for real estate. It offers a variety of options at reasonable prices. Its lack of foreign ownership restrictions makes it an attractive option for expats looking to buy property overseas.

Cambodia: Phnom Penh

Among Southeast Asian countries, Cambodia has one of the fastest-rising populations. With its fast-paced urbanization and high birth rate, the country's population is expected to double from 2 million today to 4 million in 2030.

As the Cambodian economy continues to grow, there will be more people living in the city.

Cambodia's financial district has more than a dozen international banks, including ICBC, Bank of China, and ANZ. While AEON Group from japan just finished building two huge shopping malls, with each of them reaching full capacity and thousands of daily visits.

ASEAN conglomerate AEON's largest shopping mall in Southeast Asia is situated in Cambodia's northern suburbs - a testimony to its growth potential.

As Cambodia's tourism industry continues to grow, so too has its airport.

Despite obvious opportunities for appreciation and yield, prime real estate in Cambodia still costs less than $1,000 per square foot in most cases.

For property prices in nearby capitals like Jakarta and Hanoï, where foreigners can't buy freehold land, they're way above $US4,000 per square meter compared to New York City.

Philippines: Manila

Manila has already become one of the largest cities on the entire planet, with over 25 million people residing within its metropolitan area.

It will continue to grow. By 2050, Manila is expected to have a population of at least 35 million people, which would put it ahead of both Tokyo and Beijing.

As the population of the Philippines increases from 105 million to 150 million by 2050, there will be an inevitable rise in real estate values.

Manilans prospects are comparable to other countries on our lists, such as Malaysia and Cambodia. However, there is one big difference between Manila and its competitors: its sheer population. Both now and in the future, Manila has a huge population compared to its competitors.

Kuala Lumpur and Phom Penh, though undergoing rapid transformation themselves, aren't likely to become major cities or leading global economic powerhouses any time soon.

Manila is already a "Tokyo of the 21st century," as improbable as it might sound right now.

One downside of buying real estate in the Philippines is there's no option for foreign buyers. If you're not a local, however, you can buy condos or apartments in the country without restrictions.

Korea: Seoul

Seoul has some unique advantages compared to its two neighbors, China and Japan.

Along with Kuala Lumpur, Seoul has been recognized by the United Nations as having some of the best real estate markets for foreigners. There are no restrictions for foreign buyers in South Korea.

If you are considering purchasing a house in Seoul, or buying a freehold property, there may be a good option for foreigners too. South Korea's real estate is valued in a historically stable Korean Won, which should appreciate strongly over time.

Seoul is one of the few cities on our list where you won't get outsized returns compared to the cost of living. However, if you're looking for stability, then Seoul is probably the best place for you.

As for Seoul, it has far better economic and demographic conditions than neighboring Tokyo. Its population is aging at a slower rate, and overall, its economy is stronger than Japan's.

Are you looking for yield or wealth protection? If so, then real estate in Seoul is an excellent choice because it offers both growth and security.

Yield-seeking international investors may be interested in investing in Asian frontier markets.

There are common factors among the top real estate cities in Asia.

With the exception of Singapore, which is in an advanced economy, all of the countries on our list are either emerging or frontier markets.

Countries where these two factors are both high, tend to see their economies grow faster than those where they're not.

Foreign investors can buy both freehold properties (land) and condominiums in any of these cities.

Buying property abroad is often more difficult for foreigners than buying property in their own country. However, there are some select few nations where owning real estate is easier for foreigners than others.

For example, in Thailand and the Philippines, you can purchase an apartment without having to pay any transfer taxes. However, in Malaysia and South Korea, there may be restrictions on foreign property ownership.

Leasehold properties are depreciating assets because they're considered to be a timer on a countdown for 70 years or whatever the length of the leasehold period is.

If you want to sell the house before the lease term ends, either rent out the apartment yourself or find someone else who wants to buy the place and then sell it to them at a price lower than what you paid for it. Or, if you're lucky enough to be able to get an extremely low-interest rate from a bank, use the proceeds from selling the house to pay off the mortgage.

So, in short: the best Asian markets for buying real estate benefit from natural population growth and open foreign ownership rules.

Conclusion

We hope you've found this guide useful, and that it has helped you gain a better understanding of the process of buying property in Asia. It's important to keep in mind that there are many different factors that go into choosing where and what kind of property for sale you want to buy, so we encourage you to do your due diligence before making any big decisions.