For those looking to invest in real estate in Asia, the choice of cities can be overwhelming. Think 48 diverse countries and hundreds of cities, all with their own investment potential and level of development.

Which is why we have simplified the process with our pick of the best cities in Asia for investment right now.

While individual investors will have their own list of criteria depending upon their own unique circumstances and risk profile, this selection of cities currently offers some of the best long-term opportunities.

Alongside the stable and secure stalwarts of Singapore, Seoul and Tokyo sit countries and cities with emerging economies. In many ways, these offer the greatest investment opportunity with the growing population and rising urbanisation rates meaning demand for prime, city centre real estate is only likely to surge over time.

When it comes to investing, transparent foreign ownership laws are important too – and most of the cities listed here allow foreign investors to own freehold property in some form. While Thailand, the Philippines and Singapore will let you buy a freehold condo, but not invest in land, Malaysia and South Korea do let foreigners own land. Indonesia and Vietnam are among the countries not allowing freehold, only leasehold.

1

Tokyo​​​​​​​

Population:  37 million

Rental yield: 4-5%

Japan’s property market is known for its strength and stability, making it a popular choice for foreign investors. In fact, foreign investments into Japan’s real sector have boomed in the past year, boosted by a weak Japanese Yen and favourable lending terms, as well as policies introduced by the Japanese government to attract foreign investment, and easing of requirements for foreign entrepreneurs.

One of the world’s most populated cities, housing 37 million people in its metropolitan area, Tokyo contributes one-third of Japan’s total GDP, which is significant given Japan is the world’s third-largest economy by nominal GDP. Highly urbanised and densely populated with limited availability on land, as well as a transient population, means there is an ongoing high demand for real estate, while the country’s political stability and long period of low-interest rates has seen Tokyo’s real estate market witness significant price appreciation over the years.

The city has also seen a rebound in its tourism sector, meaning investors can capitalise on this with AirBnB rentals.

Average prices for apartments in central Toyko are around US$8-9,000 per sqm with rental yield ranging from 4-5%, pretty high compared to Singapore and to cities like New York and London. Foreigners can own freehold condos but not land.

2

Singapore​​​​​​​

Population: 6 million

Rental yield: 3%

As one of the wealthiest nations in the world, with a GDP capital exceeding US$70,000, and the second busiest port, Singapore is an ideal investment destination for those looking for safety and stability given its strong economics and resilient real estate market. Singapore offers tax incentives, great infrastructure, and a good lifestyle.

But that does mean that real estate prices are high, around US$20,000 per sqm for popular locations like Orchard and Marina Bay, which are higher than New York and London. Rental yields aren’t the highest either, at around 3%, but given that the city-nation is an attractive location for UHNWIs from across Asia, rental properties are continually in hot demand.

The only downside is that overseas investors can only own freehold condo units and other strata-titled property, not freehold land or houses. Though anything is possible, if you’re a billionaire real estate investor.

3

Seoul

Population: 10 million

Rental yield: 3%

There is plenty to recommend this East Asian city, not least its friendliness towards overseas buyers, especially compared to say China. In fact, alongside Malaysia and Japan, South Korea is one of very few countries in Asia where foreigners can own land and houses on a freehold basis in their own name. There are few restrictions here.

Stability takes centre stage here, so rather than securing quick gains and large returns, investment here delivers strong appreciation over the long-term.

The growth rate for South Korea’s economy is expected to increase by 9.9% during the next five years, good news for property investment, in providing a reliable return on investment.

Property isn't cheap in Seoul with an apartment in the city centre costing 20X that of Phnom Penh, for example, at US$19,000 per sqm. But there's a reason of course – Its urban footprint is among the largest in the world and it is also one of East Asia’s most important financial and cultural centres. Rental yields range from 1.0% to 2.0%. 

South Korea’s property taxes remain the lowest in developed Asia.

Investors may also want to check out second-tier cities such Busan, Daejeon, and Daegu, which are fast-growing cities in their own right. 

4

Bangkok

Population: 10.7 million

Rental yield: 3%

As one of the world’s most-visited cities, with annual tourist numbers that outrank London and Paris, Bangkok is up there when it comes to real estate investment. Chinese property buyers are certainly getting in on the action, driven by the increasing number of Chinese tourists travelling there.

Bangkok is considered the most liquid choice in Southeast Asia, thanks largely to the huge number of realtors and flow of foreign buyers in the market, and Thailand’s Baht is among Asia’s best currencies of late – outperforming both the Singapore Dollar and the Japanese Yen.

Foreigners can own freehold condos in Thailand, and own physical land for residential purposes but only with an investment exceeding US$1,200,000. Bangkok boasts one of the higher rental yields, with moderate returns of around 5% expected in most parts of the city like Sukhumvit, Silom and Ratchathewi.

Property taxes here are among the lowest in Asia, along with Cambodia.

5

Seoul

Population: 10 million

Rental yield: 2%

There is plenty to recommend this East Asian city, not least its friendliness towards overseas buyers, especially compared to say China. In fact, alongside Malaysia and Japan, South Korea is one of very few countries in Asia where foreigners can own land and houses on a freehold basis in their own name. There are few restrictions here.

Stability takes centre stage here, so rather than securing quick gains and large returns, investment here delivers strong appreciation over the long-term.

The growth rate for South Korea’s economy is expected to increase by 9.9% during the next five years, good news for property investment in providing a reliable return on investment. Seoul’s urban footprint is among the largest in the world and it is one of East Asia’s most important financial and cultural centres.

Like Singapore, real estate prices are high, at US$19,000 and prime rental yields range from 1.5% to 2.0%.

6

Kuala Lumpur

Population: 8.6 million

Rental yield: 4%

Malaysia is known as one of the most investor-friendly countries in Asia and one of the only Southeast Asian country where foreigners can legally buy land under their own name.

The best part is that property investment in Malaysia allows investors to secure a long-term visa courtesy of the MM2H visa programme – giving them residency as part of the package.

Despite being Southeast Asia’s third richest nation after Singapore and Brunei, Malaysia’s capital Kuala Lumpur is surprisingly inexpensive when it comes to property prices – with centrally-located luxury condos costing around US$4,000 per sqm, one-third of the price of Singapore and less expensive than Bangkok too. Rental yields are on average around 4% in central KL.

Kuala Lumpur City Centre (KLCC) is home to plenty of upscale developments in neighbourhoods including Bangsar and Mont Kiara, which offer luxurious high-rise condos and landed properties, and that attract a diverse mix of affluent locals and expats willing to pay a premium.

7

Phnom Penh

Population: 2.3 million

Rental yield: 6%

Strong demographics are behind emerging city Phnom Penh’s attraction as an investment opportunity. Along with a rapidly rising middle class, the Cambodian capital is expected to double its two million-strong population by 2030 – both factors likely to see exponential demand for central real estate long-term.

The city is also fast becoming a tourism hub, with Phnom Penh International Airport (PHN) reaching an all-time high of passenger arrivals in 2023, at 2.9 million during the first nine months of 2023, up from the previous all-time high of 2 million in 2019.

Foreigners can buy a condo on a freehold basis, and if they really want to own land, can buy physical land through a Cambodian land-holding company. Property is super-cheap by regional and global standards too, at around US$1,000 per sqm for centrally located property with high rental yields of 6%.

Another plus is that Cambodia is one of the few countries in Asia to offer a citizenship by investment programme, one of the cheapest and easiest to secure in the world – meaning investors can obtain residency for life.

Property taxes here are among the lowest in Asia, along with Thailand.

8

Manila

Population metro area: 18 million

Rental yield: 6-7%

Like Cambodia, buying a property in the Philippines is backed by demographic trends. Not only is the Philippines Southeast Asia’s second most populous country with over 100 million people, but it is the region’s fastest growing. The population is expected to increase from to 150 million by 2050, while capital city Manila will also surge, from 25 million to 35 million – delivering a metropolis size to rival Toyko.

Not just that, but the median age is 25 with most of the population, young, educated, and skilled. This is good news for investors as it will lead to higher real estate prices.

Similar to Singapore in terms of legal framework, foreigners can’t own land or buy houses in the Philippines, but they can invest in freehold condos and apartments – and there are plenty on offer. Most condos in Metro Manila are based in Quezon City, Makati and Taguig, which is where most expats and wealthier residents live and where multinationals are based.

Investors can expect to pay in the range of at least US$5,000 per sqm when buying a luxury condo in one of these three area, with rental yields of 6-7% in some parts of the city. The downside is that property tax is rather high, with offshore real estate landing a 32% tax rate.

The government is also friendly to foreigners being able to buy stocks, own a business and gain a long-term visa here.

Second-tier cities like Cebu or Davao are also worth considering for investment.

9

Ho Chi Minh City​​​​​​​

Population metro area: 9.3 million

Rental yield: 5%

As one of Asia’s most promising and fast-growing markets, Vietnam has seen its GDP increase over 7% annually for decades and is fast becoming a manufacturing hub, with multinational firms increasingly setting up shop here.

Rapid economic growth coupled with a rising middle class has turned Vietnam into a bit of a property hotspot with Ho Chi Minh City (aka Saigon), the country’s largest metro area, booming. As Vietnam’s international commerce hub, Ho Chi Minh City is especially popular among expats and investors.

Though Vietnam’s property laws are fairly strict and foreigners can’t own freehold land here, as land is state-owned, investors can obtain a long-term leasehold of up to 70 years on a condo in a special economic zone (SEZ) or up to 50 years on residential property outside of the SEZ.

Property prices remain pretty low offering huge potential for growth, with property values surging 20% between 2018 and 2019, for example. Basic apartments in the city command an average of US$2,000 per sqm while luxury condos cost upwards of US$5,000 per sqm. Rental yields are high-paying with an average of more than 5% in most parts of the city.

10

Jakarta​​​​​​​

Population metro area: 9.3 million

Rental yield: 5%

While like many Asian countries, Indonesia won’t allow foreigners to own freehold property in their own name, property laws in the country have softened in recent years and investors can now be granted leasehold property for up to 70 years.

There is vast potential for growth and development here, given Indonesia’s size and population, with capital city Jakarta delivering the second largest metro area on the planet after Tokyo with more than 30 million people.

Central and South Jakarta are most popular with real estate investors, with Menteng and the Golden Triangle in Central particularly in demand among expats and wealthy locals. While Kuningan in South Jakarta is another popular investment area.

Property costs around US$4,000 per sqm and the city offers high rental yields averaging 8%. That said, like the Philippines, property taxes are very high, with landlords collecting rent but not living in Indonesia subject to a flat 20% tax on the income, while fees for selling property come in at 2.5% of the value of the property.

Indonesia’s second-tier cities are growing even faster than Jakarta, so Surabaya and Medan are also worth considering. There is plenty of urbanisation going on here, especially given Indonesia’s first high-speed rail system now connects Surabaya and Jakarta.