[News] Wealthy Buyers Rush to Luxury Condominiums as an Inflation Hedge
Image for illustrative purposes only. Photo courtesy of Unsplash (ZR Lin).
As economic uncertainty and global geopolitical risks continue to rise, Malaysia’s property market—particularly the luxury segment—is experiencing an exceptional boom.
According to RHB Investment Bank, demand for high-end residential properties remains remarkably strong. In prime areas of Kuala Lumpur and the Iskandar region of Johor, luxury homes are reportedly being snapped up almost as soon as they are put on the market.
In light of this trend, the bank has maintained its “Overweight” rating on the property sector and identified Sime Darby Property and Eco World as its top investment picks.
Luxury Real Estate Emerges as a “Safe Haven” for Assets
According to the report, many high-net-worth individuals view real estate as a hedge against inflation, making luxury properties a safe haven for preserving wealth.
The most sought-after locations include:
- Mont Kiara
- Damansara Heights
- KLCC (Kuala Lumpur City Centre)
- Prime areas in Iskandar, Johor Despite rising prices for newly launched properties, buying interest remains exceptionally strong. Premium developments such as ParkCity Damansara and Pavilion Damansara Heights continue to command high prices, with little sign of any decline.
The market is primarily driven by three groups of buyers:
- Foreign investors
- Homebuyers upgrading to better residences
- Affluent seniors seeking to downsize while moving to more prestigious locations
Johor Property Boom Accelerates Amid RM13 Billion REIT Listing Plans
As the completion of the Rapid Transit System (RTS) linking Singapore and Johor approaches, Johor’s property boom continues to intensify. Demand is rising not only for residential properties but also for data center land, with prices repeatedly hitting record highs.
Although the Malaysian ringgit has strengthened recently, persistently high living costs and inflation in Singapore have led many Singaporeans to continue spending, buying property, and residing long-term in Johor.
Against this backdrop, property developers are accelerating plans to list real estate investment trusts (REITs) backed by assets worth approximately RM13 billion. Major developers such as Sime Darby Property and SP Setia are expected to inject these assets into REITs and list them within the next two years.
Meanwhile, the current interest rate environment remains favorable for buyers, further supporting demand.
Recent commercial property projects have recorded take-up rates exceeding 90%, with developments such as Aspira Place by UEM Sunrise in Johor and the REKA commercial project in Elmina, Selangor, by Sime Darby Property being almost fully sold shortly after launch.
Source：富人转买豪宅抗通胀 高端房产“推出就抢”(e南洋)ー2026年5月11日 https://www.enanyang.my/news/20260703/International/1302195
