Since the Covid-19 pandemic broke out globally, major real estate agents around the world said they have received many consulting requests from Asia's richest people looking to profit even during the pandemic and can invest for the long term.
While some luxury private islands with idyllic scenery are often sold for around $100 million, some small islands costing only about $55,000 – a fraction of the cost of an apartment in Hong Kong – are becoming an attractive choice for many Asian tycoons.
Edward de Mallet Morgan - a real estate business partner of the world's leading real estate consulting and services company Knight Frank in London, specializing in real estate business in the private island sector, said the demand for owning private islands since the COVID-19 outbreak in Wuhan (China) has been increasing.
“For those who intend to own a private island, the current world situation will be a driving force to find a safe haven for themselves and their families. As well as a financial investment, private islands will certainly be a beneficial investment for health in this special time. For island owners, this is the key to bringing wealth, health, happiness to their families. It is not only the best and most beautiful locations, but also an environment that is free of pollution, the freshest air possible,” said Mr. Mallet Morgan.
A small private island in the Caribbean
The coronavirus has spurred investors to seek beautiful islands around the world, but some islands in the Americas have piqued the curiosity of many. Chris Krolow, CEO of Ontario-based Private Island, owner of the lush Barrier Reef resort Gladden Private Island, said there has been a surge in demand for private islands in recent months, especially in the Caribbean and Central America. A bonsai resort on the Barrier Reef in Belize, Caribbean, rents for about $3,695 a night.
“Asian buyers are very cautious investors, they are often looking for a safe haven during the pandemic and can make a profit later, whether to develop it or resell it. A private island is definitely a suitable option,” said Mr. Krolow.
Krolow’s company has listed nearly 700 properties, from the 2.5-hectare Half Island in Nova Scotia, priced at $59,000, to the 9-hectare Nusa Riro in the Solomon Islands, priced at $25 million. But while private islands are becoming attractive places to hide during the global pandemic, agents urge caution. Climate change and rising sea levels are among the biggest natural disaster risks investors face. Potential buyers should also consider accessibility, including weather and distance from the mainland, power and drinking water, and local building regulations. For this reason, Asian investors tend to favor islands that are already developed.
“The demand from Asian clients is huge. Over the years, we have successfully traded properties in Canada, New Zealand, Scotland, the Caribbean and the Maldives. Among them, Panamanian islands are particularly popular with mainland Chinese because of the easier visa requirements,” said Farhad Vladi, who runs the private Vladi Islands in Hamburg, Germany.
