Introduction: The Asian Property Landscape
Asia has long fascinated investors with its rapid urbanisation, booming middle class, and increasing global appeal. As a region comprising both powerhouse economies like China and Japan and rising stars like Vietnam and the Philippines, Asia presents a compelling mix of real estate opportunities, especially post-pandemic. Knight Frank estimates that prime property prices across the region rose by 3.2% in 2024, buoyed by a resurgence in wealth and accumulation of robust stock markets.
What’s different about property investment in Asia in 2025? One answer is: diversification. Whether it’s wealthy investors seeking wellness-led lifestyles in Thailand or foreign firms parking capital in Hong Kong amid inflation jitters, Asia’s property narrative has expanded beyond just price per square foot. Instead, it’s now about lifestyle alignment, visa perks, long-term capital growth, and – crucially – resilience.
As Victoria Allan, Founder and Managing Director of Habitat Property, succinctly puts it during an interview with BurdaLuxury: “Each market is different, and we specialise in Hong Kong. Investors need to look at local supply and demand issues and local taxes.”
What Makes Asia an Attractive Market for Real Estate Investments?
With its blend of high-growth potential, policy innovation, and lifestyle-driven development, Asia continues to attract global property investors seeking more than just returns. As markets mature and buyers become more sophisticated, the real estate value proposition has evolved, now encompassing everything from wellness to work-life flexibility.
Allan Zeman, chairman of LKF Group, tells BurdaLuxury, “The ability to align real estate with lifestyle, especially in sought-after coastal destinations, is becoming increasingly important for today’s buyers.” Asia’s appeal is multifaceted. Economic resilience, favourable demographics, and government initiatives like Thailand’s Elite and LTR visas are powerful magnets for investors.
Zeman adds, “Today’s investors are looking beyond real estate; they’re seeking spaces that align with the aspirations of a mobile, design-conscious generation.”
Micah Tamthai, COO at Minor International, supports this, telling BurdaLuxury: “Despite foreign ownership restrictions, Koh Samui continues to see strong demand… especially for international buyers looking for a hassle-free investment.” He continues, “Our branded residences are thoughtfully designed to offer a seamless ownership experience.”
Amidst robust economic growth in 2024, Asia has seen a surge in high-net-worth individuals, driving prime property prices up by 3.2%, according to Christine Li, head of research in Asia Pacific for Knight Frank. Li attributes this momentum to both the expanding wealth pool and shifting lifestyle trends, highlighting how enthusiasm around AI and easing rates have further fuelled demand for risk assets.
Li explains, “We recall that 2024 was a breakout year for equities, as easing rates fuelled bets on risk assets and enthusiasm around AI revved up tech stocks.”
Factors Affecting Property Investment in Asia
Interest rates, demand and supply, and market sentiment are universal factors that play a role in shaping real estate outcomes. But in Asia, geopolitical and cultural factors add nuance.
“Hong Kong now has a very open policy, and anyone can buy property here,” said Habitat Property’s Victoria Allan.
Christine Li warns of risks: “Policy risks, especially in developed markets, can dampen investment activity and restrain price growth.”
Ravi Chandran, Executive Director of Banyan Tree Residences Sichon, highlights the importance of infrastructure: “Airport expansions and upcoming high-speed rail links are improving access to coastal regions.”
He also notes a shift in buyer preferences: “There is growing demand for absolute beachfront villas – properties that offer immersive, high-value experiences.”
Bill Barnett, Founder and Managing Director of C9 Hotelworks, emphasises another factor: “Resort properties are emotional buys and most are not yield driven.”
Best Asian Countries for Real Estate Investment
Thailand has evolved into more than a retirement haven or second-home destination. Ravi Chandran explains: “The return of global tourism and rise of local-independent work have fuelled demand for resort homes.”
He continues, “These models have made villa ownership in resort areas both accessible and attractive to a global audience.”
Every real estate market is shaped by its own unique set of drivers, but across the region, sustained economic growth and evolving lifestyle trends have created a powerful synergy. Bill Barnett points out that Thailand’s luxury market is a favourite with international buyers while Vietnam is heavily domestic.”
“Phuket has resort-grade real estate with a market value of US$7-8 billion and probably 80% is not leveraged, meaning no finance in place,” says Barnett. “It’s an odd marketplace… most is bought in cash.”
Micah Tamthai adds that Thailand’s legal framework “restricts direct land ownership by foreign nationals,” but offers workarounds like leasehold agreements and Thai company setups. “We offer secure 90-year leasehold agreements for our branded residents,” he says.
He also highlights residency benefits: “The LTR Visa provides 10-year renewable residency for high-net-worth individuals, skilled professionals, and retirees.”
Despite high property prices and geopolitical volatility, Hong Kong remains a strategic buy. Lai Lok Yi, assistant manager at List Sotheby’s International Realty, Hong Kong, tells BurdaLuxury that recent budget initiatives have sparked renewed activity in the property market. In March, transactions surged to 6,651 – a four-month high, reflecting a 54% monthly increase. However, the year typically starts slow for the market, with many buyers adopting a wait-and-see approach as global conditions evolve. “Following the lift of the ban, there has been a significant rise in the number of properties purchased under company names, largely driven by an influx of mainland customers and the risk-reducing advantages that limited companies provide,” she says.
In short, the Hong Kong property market has demonstrated strong resilience and promising growth potential, buoyed by factors such as expected interest rate cuts and government support measures. Amid global financial instability, more investors are seizing the opportunity, looking for favourable deals in the real estate sector.
Despite challenges from the pandemic, rising interest rates, and the US-China trade war, Hong Kong’s luxury property market has created opportunities for long-term investors. With properties selling below their previous values, buyers are gaining more bargaining power and focusing on future growth. Supportive government policies are further easing conditions, making it an attractive time to invest.
Singapore is another stronghold for investors seeking safe havens. However, Christine Li points to barriers: “Most foreign buyers in Singapore face an additional 60% in stamp duties.”
Still, Singapore boasts a transparent legal system, excellent infrastructure, and stable yields.
Hong Kong’s Low Property Buying Rate
Despite challenges such as rising interest rates, geopolitical tensions, and the aftermath of the pandemic, Hong Kong’s luxury property market is showing signs of recovery. According to Victoria Allan, property prices in Hong Kong have started to recover, and we can expect this trend to continue.
In the first three quarters of 2024, mainland Chinese buyers purchased 8,133 new and second-hand homes, accounting for 24% of total sales, with a total value of HK$90.6 billion, according to a Centaline survey. This represents a 68% increase in transaction volume and a 43% increase in value compared to the previous year.
While challenges persist, the current market conditions present opportunities for long-term investors seeking to capitalise on Hong Kong’s strategic position and potential for growth.
Tips for Making Real Estate Investments in Asia
When making real estate investments in Asia, it’s important to first understand the local ownership structures. In some countries, foreigners may be limited in terms of property ownership, often restricted to a certain percentage of a building or development. Legal due diligence is also crucial, especially when structuring ownership through local companies, which must comply with specific regulations. It’s advisable to buy from trusted developers, as some off-plan developments can carry added risks. For resort properties, while they can be emotionally driven purchases, investors should focus on long-term capital appreciation rather than immediate returns. Additionally, some countries offer visa opportunities for property investors, providing long-term residency options with additional benefits. Lastly, diversifying risk by choosing projects from reputable developers with strong financial backing can help ensure successful and secure investment.
BurdaLuxury’s Lens
Asia’s property market is more than an investment – it’s a strategic bet on the region’s future. With governments opening up lifestyle visas, cities building mega-infrastructure, and developers offering turnkey solutions, there’s arguably never been a more dynamic time to invest across Asia. The key? Think long-term, stay informed, and know that property here isn’t just about where you live – it’s about where the world is headed.
Whether you’re chasing yield, hedging inflation, or planning your forever home, Asia’s real estate landscape offers the scale, diversity, and opportunity to match your ambition. Just remember – behind every promising skyline is a checklist of fine print, and a regional expert who knows the ropes.
