In the global asset allocation wave, real estate has become a focus for investors due to its characteristics such as inflation protection and stable returns. Southeast Asia and Europe and the United States, as two popular regions, present distinctly different investment logics: the former attracts emerging investors with “high rental returns and low entry barriers,” while the latter wins over high-net-worth individuals with “asset preservation and educational and medical resources.” However, the choice is not simply a comparison of return figures, but requires a comprehensive decision based on individual needs, risk appetite, and long-term planning. This article will analyze from the dimensions of investment objectives, liquidity, holding costs, and policy risks to help you find the most suitable overseas real estate allocation plan.
If “maximizing rental income” is the core objective, Southeast Asian real estate often has a greater advantage. Taking Bangkok, Thailand, and Manila, Philippines as examples, the rental yield of apartments in their core areas is generally between 5% and 7%, far exceeding that of major European and American cities. One apartment project in Bangkok’s Sukhumvit area can generate a monthly rent of 8,000 RMB, with an annual return of 6.2%, while London properties in the same price range typically have a rental yield of less than 3%. This difference stems from Southeast Asia’s demographic structure and urbanization process: a high proportion of young people and a dense concentration of migrant workers drive sustained strong rental demand. Furthermore, Southeast Asian properties are generally cheaper; a fully furnished apartment in Bangkok can be purchased for as little as 2 million RMB, while comparable properties in Europe and America often cost double, further amplifying the rental yield gap. For investors seeking cash flow, Southeast Asia is a more pragmatic choice.
If “asset preservation and inheritance” is the primary consideration, the stability of European and American properties is more prominent. The real estate markets of the United States, the United Kingdom, and Australia have undergone a century of development, boasting well-established legal systems, clear property rights, and a long-term correlation with inflation. For example, the average annual increase in property prices in core US cities has been around 5% over the past decade, lower than some emerging markets in Southeast Asia, but with lower volatility, demonstrating stronger resilience, especially during economic crises. Moreover, the “hidden value” of European and American properties cannot be ignored: holding US property allows for low-interest loans and optimized global asset allocation; UK property can serve as a springboard for children’s education and immigration, allowing them to enjoy local educational and medical resources. A Shanghai family purchased a one-bedroom apartment in London, not only covering their child’s overseas education expenses through rental income but also successfully reselling it after graduation, achieving a double return on asset appreciation and educational investment.
Holding costs and policy risks are “hidden variables” in decision-making. Southeast Asian real estate generally has lower holding costs. For example, in Malaysia, property tax is only 0.4%-1% of the property price, and there is no inheritance tax. In contrast, holding costs for European and American real estate are higher. In the US, property tax averages 1%-3%, while in the UK, council tax and stamp duty are required. Regarding policy risks, some Southeast Asian countries restrict foreign property purchases (e.g., Thailand prohibits foreigners from buying land), and the efficiency of law enforcement varies. While European and American countries have transparent policies, some cities recently (e.g., Vancouver, Canada; Sydney, Australia) have imposed additional taxes on foreign property purchases, requiring close monitoring of policy developments. For example, one investor, unaware of the restrictions on foreign property ownership in the Philippines, encountered a title dispute after purchasing an apartment, ultimately suffering significant losses. Therefore, thorough research into local laws and tax policies is essential before making a purchase.
There is no absolute superiority or inferiority between Southeast Asian and European/American real estate; the key lies in matching investment objectives. If you’re looking for high cash flow and low barriers to entry, Southeast Asia is an ideal starting point; if you prioritize asset preservation and access to education and healthcare resources, Europe and the US are more worthwhile investments. For beginners, it’s recommended to start in Southeast Asia, gain experience, and then gradually expand to the European and American markets. The upcoming Shanghai Global Real Estate Exhibition will be an important reference for your decision-making: the exhibition brings together developers, real estate agencies, and legal experts from over 50 popular cities in Southeast Asia and Europe and the US, providing a one-stop service from project selection and legal consultation to tax planning. Face-to-face communication with professional institutions allows for more precise matching of needs and avoids the risks of information asymmetry. In the era of global asset allocation, rational choices are more important than blindly following trends, and a professional real estate exhibition may be the key step you take to begin global wealth management.
