Asian homebuyers grow regional property portfolios in Southeast Asia

Phnom Penh is an emerging market for buyers, offering rental yields of 8% to 10%.

Luxury homebuyers in Asia are opting to stay local, investing more in regional properties, especially in Southeast Asia, an expert said.

“They’re still buying in Europe and North America and some Middle East, but we’re seeing a rise in the volume for Southeast Asian real estate,” Andrew Grimley, head of Global Distribution at International Property Alerts, told Real Estate Asia on the sidelines of the Global Property Expo held in Singapore from 18 to 20 July.

Within Southeast Asia, Grimley said Cambodia, Thailand, the Philippines, and Bali, Indonesia, have been gaining attention from Asian buyers.

“Cambodia is a very exciting marketplace with a number of companies going in there for no capital gains tax, high rental yields, and capital appreciation,” Grimley said.

“Established markets like Thailand are still doing very well. We're seeing huge growth in Bali, and the Philippines is [gaining] a lot more interest,” he added.

Grimley pointed to Bali, Indonesia, and Thailand as top rental yield destinations in Southeast Asia. Phnom Penh, Cambodia, is also an emerging market, offering rental yields of 8% to 10%.

Beyond the region, he named Sydney and Melbourne as solid options for investors seeking strong rental income.

Grimley said investors should seek out a good management company and prioritise capital appreciation when buying properties.

“You've got to look at growth in markets, not just tourism, but growth in the economy as well,” Grimley said.