Private islands – luxurious getaways for Asia's wealthy during the pandemic.

Since the global Covid-19 pandemic broke out, major real estate agencies around the world have reported receiving numerous requests for advice from Asia's wealthiest individuals seeking to generate profits even during the pandemic and potentially make long-term investments.

While some luxurious private islands with idyllic scenery are often listed for around $100 million, smaller islands priced at only around $55,000 – a fraction of the cost of an apartment in Hong Kong – are becoming an attractive option for many wealthy Asians.

Edward de Mallet Morgan, a real estate business partner at Knight Frank, a leading global real estate consulting and services firm based in London, specializing in private island properties, said that demand for private island ownership has been increasing since the COVID-19 outbreak in Wuhan, China.

“For those considering owning a private island, the current global situation will be a driving force in their determination to find a safe haven for themselves and their families. Like a financial investment, a private island will certainly be a beneficial investment in health during these exceptional times. For island owners, it is the key to wealth, health, and happiness for their families. It's not just about finding the best and most beautiful locations, but also about having an unpolluted environment and the cleanest air possible,” said Mallet Morgan.

The SARS-CoV-2 virus has spurred investors to seek out beautiful islands around the world, but some islands in the Americas have piqued particular interest. Chris Krolow, CEO of Private Island, based in Ontario and owner of the eco-friendly resort Gladden Private Island on the Barrier Reef, says demand for private islands has surged in recent months, particularly in the Caribbean and Central America. A bonsai resort on the Barrier Reef in Belize, Caribbean, costs around $3,695 per night to rent.

“Asian clients are very cautious investors; they often look for a safe haven during a pandemic and a place where they can profit afterward, whether developing or reselling it. A private island is certainly a suitable option,” said Krolow.

Krolow's company has listed nearly 700 properties, ranging from a 2.5-hectare Half Island in Nova Scotia, priced at $59,000, to a 9-hectare Nusa Riro in the Solomon Islands, valued at $25 million. However, while private islands are becoming attractive havens during the global pandemic, agents are also urging investors to exercise caution. Climate change and rising sea levels are among the biggest natural disaster risks investors may face. Potential buyers should also consider accessibility, including weather and distance from the mainland, electricity and drinking water supply, and local building regulations. This is why Asian investors often prefer already developed islands.

“Demand from Asian clients is huge. Over the years, we’ve successfully brokered numerous real estate deals, including islands in Canada, New Zealand, Scotland, the Caribbean, and the Maldives. Of these, islands in Panama are particularly popular with mainland Chinese due to the easier visa requirements,” said Farhad Vladi, who manages the private Vladi Islands in Hamburg, Germany.

My Tong