Malaysia and the United States (US) are the top countries from which high-end global property buyers hailed from in 2020, according to a recent study published by Enness Global, a mortgage broker for high-net-worth individuals.
Malaysian buyers funded their purchases on properties worth an average of £6.01m ($8.2m). They also borrowed the second-largest amount, with an average loan value of 3.01m.
The US ranked second, purchasing homes with average property values of £5.063m with an average loan amount of £3.271m.
The data was gathered using Enness’ own transaction records.
“Despite the current landscape, we’ve seen high-end buyers from around the world continue to commit to property purchases while weak currencies and low-interest rates remain in their favour, said Islay Robinson, group chief executive officer of Enness Global Mortgage.
“This demand hasn’t been refined to certain pockets of the market or indeed specific nationalities and there has been a notable level of demand coming from all corners of the world from the UK, Europe, the Middle East and the United States.”
High-net-worth individuals have historically used luxury real estate as a tool in a hedge against risk through varied investment portfolios and is a trend that will continue into 2021, predicts Enness Global.
In fact, growing concerns over a global economic slowdown amid rising COVID-19 case numbers, “will no doubt see high-end buyers continue to diversify their portfolios, to ensure they have options to suit both their personal and business interests, should they need them for the coming year,” said Robinson.
Even in the UK, the property market has shown no signs of slowing down, despite successive lockdowns and the looming threat of Brexit.
Prices in prime central London remained firm throughout the year, according to Luxury London, with even some impressive sales in 2020. This includes a Knightsbridge mansion owned by the Saudi Royal family which sold to a Chinese businessman for a record £210m in January. The UK’s official departure from the EU at the end of 2020 and December’s general election have been attributed to a phenomenon called the “Boris Bounce,” an unexpected record rise in annual house price growth.