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THE 2025 CONDOMINIUM OVERSUPPLY IN METRO MANILA

THE 2025 CONDOMINIUM OVERSUPPLY IN METRO MANILA

written by Emanuel Andrew Venturina, Head of IQI Philippines ANALYZING LOCATION-SPECIFIC SUPPLY AND EMERGING OPPORTUNITIESThe Philippine real estate market, particularly in Metro Manila, has experienced rapid growth over the last decade, marked by a significant rise in condominium developments. However, as we approach 2025, concerns about oversupply are emerging, especially in Ready-for-Occupancy (RFO) units. This article examines the condominium oversupply in Metro Manila, explores its implications, and highlights opportunities in the Philippine real estate market, driven by favorable economic conditions such as high GDP growth, low interest rates, and low inflation. Understanding Oversupply in Metro ManilaAs of 2025, Colliers predicts that the condominium market in Metro Manila is experiencing an oversupply, with more units being developed than the current demand can absorb. This situation could lead to increased competition among property developers and downward pressure on prices, impacting investors, developers, and potential homeowners alikeHowever, it is important to emphasize that not all property segments and condominium projects are affected by the oversupply. Each project and property offer unique value and benefits, making careful selection essential for buyers and investors.Emerging Opportunities in the Philippine RealEstate Market Despite the challenges posed by oversupply, opportunities still exist for investors and homebuyers in 2025, supported by several favorable economic conditions:Low Interest RatesWith interest rates projected at 5.7% by the end of 2024, financing options remain accessible. Prospective buyers can secure loans at manageable rates, making it an opportune time to enter the market or invest in existing inventory.Low Inflation RateA stable low inflation rate (3.2% average in 2024) allows consumers to maintain their purchasing power, boosting confidence in long-term real estate investments.Increased Demand for Luxury and High-End Properties While the lower to upper mid-segment may face oversupply, there is growing demand for luxury and leisure properties, as well as horizontal developments (e.g., townhouses and landed homes).Urban Revitalization InitiativesThe government’s commitment to urban renewal and infrastructure projects will enhance connectivity and accessibility, making less congested areas more attractive for residential developments.Investment in Sustainable DevelopmentsThere is a noticeable shift towards environmentally friendly and sustainable residential solutions. Developers focusing on eco-friendly designs and green amenities may gain a competitive advantage as consumers increasingly prioritize sustainabilityConclusionAs Metro Manila navigates the complexities of a potential oversupply in the condominium market by 2025, the concentration of available units in various locations presents both challenges and opportunities. While the oversupply may put pressure on some markets, economic factors such as low interest and inflation rates provide a favorable environment for strategic investments.Homebuyers and investors can explore opportunities in:Luxury and leisure propertiesUrban revitalization projectsSustainable developmentsTo capitalize on opportunities in the Metro Manila real estate market, thorough research, expert guidance, and active market monitoring are crucial. By adapting to the evolving landscape, investors can make informed decisions and maximize returns, even in times of oversupply.For more info on global insight. cick here!

11 March

IQI KARACHI – REAL ESTATE MARKET UPDATE

IQI KARACHI – REAL ESTATE MARKET UPDATE

written by Junaid Hamid, Head of IQI Pakistan Pakistan’s real estate market is at a pivotal moment, shaped by ambitious economic reforms, transformative fiscal policies, and emerging technological innovations. As investors seek opportunities amid global uncertainty, the market presents a dynamic landscape of challenges, opportunities, and future potential. This article explores these key factors, with a special focus on Karachi, Pakistan’s financial and commercial hub.Opportunities Shaping the MarketDespite economic challenges, several transformative opportunities are emerging that promise to reshape Pakistan’s real estate sector:International Support and Fiscal IncentivesA key driver of optimism is the World Bank’s commitment to providing up to $20 billion in financial support over the next decade, contingent on Pakistan’s progress with critical economic reforms. This substantial backing is expected to boost investor confidence and drive long-term economic stability. Tax Reforms and Investor-Friendly Policies- Recent tax reform proposals aim to enhance transparency and attract more investors:- Reduction in property transaction taxes for properties valued over Rs100 million.- Lower advance tax rates for filers, from 4% to just 0.5%.- A landmark policy update from the Federal Board of Revenue (FBR) now allows non-filers to purchase property up to PKR 1 crore, increasing market transparency and broadening the investor base.Karachi’s Dynamic Market and Infrastructure Upgrades- Karachi remains Pakistan’s top investment destination, thanks to:- Strategic coastal location and a booming urban population.- Major infrastructure projects, such as the Malir Expressway, improving connectivity.- Growing demand for residential and commercial properties, driven by modern amenities and economicexpansion.PropTech & Asset Tokenization: The Future of Real EstateTechnological innovations such as asset tokenization are revolutionizing the property market. Platforms like DAO PropTech are making real estate investments more accessible by allowing properties to be traded as smaller, digital units, increasing transparency and affordability.Challenges in the Current MarketDespite positive growth indicators, the real estate sector faces several challenges that investors must navigate:Economic Uncertainty & Reform ChallengesWhile Pakistan has the potential to become a $1 trillion economy by 2035, achieving this requires sustaineddomestic economic reforms.World Bank Vice President for South Asia, Martin Raiser, emphasized that maintaining a 7% annual growth ratewill be crucial for unlocking real estate potential.Regulatory & Fiscal HurdlesThe real estate market has long struggled with opaque transactions and a reliance on undeclared funds.Government efforts to increase transparency and tax compliance are positive steps, but the transition period may create short-term market fluctuations.External Market PressuresGlobal economic volatility and geopolitical uncertainties can influence investor sentiment in cities like Karachi, known for its dynamic but fluctuating market conditions.Looking Ahead: Growth & ResilienceThe future outlook for Pakistan’s real estate sector is optimistic, supported by:Economic Transformation & StabilityWith international backing and progressive government policies, Pakistan is laying the groundwork for long-term economic stability and real estate growth.Expansion of Investment OpportunitiesEased tax restrictions and FBR’s new non-filer policy create a more inclusive investment landscape, welcoming a new wave of investors.Karachi’s Role as a Catalyst for ChangeWith massive infrastructure developments, Karachi remains the heart of Pakistan’s economic activity and is set to lead the country’s real estate boom..4. Technological Disruption in Real EstateDigital transactions and property tokenization platforms are making investments more secure, efficient, and accessible to both traditional and tech-savvy investors.ConclusionIn 2025, Pakistan’s real estate market, particularly in Karachi, presents a compelling blend of challenges and opportunities. Major reforms, regulatory changes, and technological advancements are reshaping the sector, creating unprecedented opportunities for local and international investors.For investors looking for long-term gains, the current landscape offers a unique opportunity to be part of atransformative era in Pakistan’s real estate sector. By embracing these changes, investors can position themselves for success in a more resilient, transparent, and lucrative market.

11 March

IS THE REAL ESTATE MARKET IN HANOI OR HO CHI MINH CITY MORE ATTRACTIVE TO INVESTORS?

IS THE REAL ESTATE MARKET IN HANOI OR HO CHI MINH CITY MORE ATTRACTIVE TO INVESTORS?

Written by Dustin Trung Nguyen, Head of IQI VietnamSegment 5-10 billion VND: Demand in Ho Chi Minh City is almost twice as high as in Hanoi.Segment 1-3 billion VND: Ho Chi Minh City leads, reflecting the strong appeal of affordable housing in theSouthern market.Segment 2-3 billion VND: Hanoi dominates, thanks to apartment developments that align with the financialcapabilities of most buyers.Types of Real Estate in DemandHo Chi Minh City: Private houses are the most sought-after, particularly in areas such as An Phu (District 2), Phu Huu (District 9), Thao Dien (District 2), and District 7.Hanoi: Apartments lead in search demand, notably in Nam Tu Liem (Tay Mo), Cau Giay (Trung Hoa), and satellite areas such as Gia Lam, Hoang Mai, and Ha Dong.Neighboring Provinces: Land for sale dominates, catering to investment needs and suburban infrastructure development.Rental Market: A Consistent TrendThe rental real estate market remains stable across regions. The most in-demand rental properties include apartments, boarding houses, rented rooms, and private houses, reflecting steady demand among residents and workers.Project Supply & Market RecoverySlight Recovery from Late 2024After a prolonged stagnation, real estate supply has begun to recover:Hanoi: Nearly 10 new projects were launched, including Lumi Hanoi, Imperia Sola Park, The Ninety Complex, Vinhomes Co Loa, and Grand Sunlake.Ho Chi Minh City: The market gained momentum towards the end of the year, with new developments such as Eaton Park, The Opus One, Fiato Uptown, Lavida Plus, Khai Hoan Prime, and King Crown InfinityMarket Overview and ForecastIn 2023, total market supply hit its lowest level in the past decade. However, from Q3 2024 onwards, new projects have re-entered the market, particularly in HCMC, which is experiencing a stronger recovery than Hanoi. With stable demand in the mid-range and high-end price segments, along with a resurgence in supply, the Vietnamese real estate market is expected to grow significantly in 2025, particularly in Ho Chi Minh City.The real estate revival in 2024 was fueled by growing homeownership demand and notable infrastructure improvements. These factors have accelerated transactions and investment activities, further strengthening the market.Commercial MarketChallenges in Hanoi’s Shophouse MarketMany shophouses in downtown Hanoi are being left vacant as shop owners struggle to stay afloat amid an e-commerce boom.Case Study:Thu Phuong, a store owner in Hanoi, recently vacated her 70-square-meter fashion store in Cau Giay District, after closing two other outlets earlier in the year.While revenue from her three stores once covered rent costs, declining sales forced her to terminate lease agreements.She is now shifting her business focus to online sales and looking for a smaller, lower-rent location in sidealleys.Declining Retail Demand & Rising VacanciesThe capital’s once-bustling fashion and restaurant streets are now lined with vacant storefronts, as landlords struggle to find tenants.Kim Ma Street: Over 40 stores have closed.Nguyen Thai Hoc Street: Faces a similar downturn, with an increasing number of empty commercial spacesMarket Insights:Duc Huy, a property broker with five years of experience, estimates that shophouse vacancies have risen by15-20% compared to last year.A five-story property on Kim Ma Street has remained vacant since August, even after landlords lowered rents by 10% from two years ago to VND 50 million (US$1,960) per month."A few years ago, landlords demanded high rents, and tenants were willing to pay. That is no longer the case." –Duc Huy, Property BrokerChanging Consumer Behavior & Investment ChallengesNguyen Chi Thanh, Vice Chairman of the Vietnam Association of Realtors, highlights that the shophouse segment is facing major challenges, as customers increasingly prefer shopping malls or online- Instead of investing in high-rent retail locations, businesses are shifting budgets toward online marketing,which attracts more customers.Key Drawbacks of Hanoi’s Shophouse Market:Limited Parking Spaces: Compared to shopping malls, most shophouses lack sufficient parking, making themless convenient for consumers.Declining Rental Profitability: According to Dinh Minh Tuan, Business Director at Batdongsan, shophouse rental yields remain at around 3% annually—unchanged since 2021.For more info on global insight. click here

11 March

CANADA: REAL ESTATE MARKET OVERVIEW 2025

CANADA: REAL ESTATE MARKET OVERVIEW 2025

Written by Yousaf Iqbal, Head of IQI Canada The Canadian real estate market began 2025 with strong sales activity and increased listing inventory, reflecting shifting market dynamics across key metropolitan areas. A combination of interest rate cuts in late 2024, improved affordability measures, and growing buyer confidence has contributed to heightened activity, particularly in Toronto, Vancouver, and Montreal. Greater Toronto Area (GTA)Home sales surged by 48.6% year-over-year, demonstrating renewed buyer demand.The average selling price rose by 1.5% to $1,040,994, indicating moderate price growth in line with inflation.Market analysts expect a well-supplied housing market to keep annual price appreciation steady throughout the yearThe Toronto Regional Real Estate Board (TRREB) projects that the GTA’s housing market will see moderate price growth, keeping pace with inflation. The MLS® Home Price Index Composite benchmark rose by 0.44% year-over-year in January 2025VancouverNew listings increased by 46% year-over-year, indicating growing seller confidence.The total inventory of homes for sale grew by 33.1%, providing more options for buyers.Residential sales rose by 8.8%, contributing to a balanced market environment.MontrealVReal estate transactions jumped by 36%, surpassing historical averages.This surge was primarily driven by favorable financing conditions following the recent interest rate cuts.Toronto Market UpdateThe year started with GTA REALTORS® reporting 3,847 home sales through TRREB’s MLS® System in January 2025, marking a 48.6% year-over-year increase. On a seasonally adjusted basis, January sales increased month-over-month compared to December 2024. The MLS® Home Price Index Composite benchmark rose by 0.44% year-over-year, while the average selling price of $1,040,994 was up 1.5% compared to January 2024. The TRREB Market Outlook and Year-in-Review report suggests that a well supplied housing market will keep annual home price growth aligned with inflation, leading to moderate price increases in the GTA throughout 2025Vancouver Real Estate Market – January 2025New MLS® listings in Metro Vancouver surged by 46% year-over-year in January, as sellers entered the market with renewed confidence. According to Greater Vancouver REALTORS® (GVR), residential sales in the region totaled 1,552 in January 2025, marking an 8.8% increase from 1,427 sales in January 2024. However, this figure remained 11.3% below the 10-year seasonal average of 1,749. A total of 5,566 detached, attached, and apartment properties were newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2025. This represents a 46.9% increase compared to the 3,788 properties listed in January 2024, and 31.1% above the 10-year seasonal average of 4,247.The total number of properties currently listed for sale on the MLS® system in Metro Vancouver stands at 11,494, a 33.1% increase from January 2024 (8,633), and 33.2% above the 10-year seasonal average of 8,632.Sales-to-Active Listings Ratio – January 2025Across all property types (detached, attached, and apartments), the sales-to-active listings ratio stands at 14.1%:Detached homes: 9.2%Attached properties: 18.5%Apartments: 16.5%Quebec For more info on global insight. Click here

11 March

AUSTRALIA: NATIONAL HOUSING MARKET OVERVIEW

AUSTRALIA: NATIONAL HOUSING MARKET OVERVIEW

Written by Lily Chong, Head of IQI Australia The start of the year saw national dwelling values remain steady, with only a slight dip of 0.03% in January. While capital cities experienced a collective 0.2% decline, regional areas continued to grow, reaching new record highs with a 0.4% increase. Among the capital cities, Melbourne led the declines with a 0.6% drop, followed by the ACT (-0.5%) and Sydney (-0.4%). In contrast, Brisbane and Perth maintained growth, though at a slower pace, particularly in the detached housing market. Perth’s quarterly growth rate eased from 7.1% in June 2024 to just 1.0% in the three months to January. Meanwhile, Adelaide remained resilient, leading capital city growth over the past six months with a 4.8% increase. On an annual scale, national home value growth slowed significantly, dropping from a 9.7% peak in February 2024 to 4.3% in January. Melbourne (-3.3%), the ACT (-0.5%), and Hobart (-0.4%) recorded yearly declines, while Sydney posted a modest 1.7% gain—the lowest since June 2023. Regional Victoria was the only broad regional area to see a decline over the past year (-2.6%) . Perth Property Market SnapshotPerth’s housing market remains strong, with the median house sale price rising by 1.4% in January to $750,000—an impressive 23% increase year-on-year. Units also saw positive movement, with the median price increasing by 1.0% to $500,000, reflecting a 20.5% annual rise.According to REIWA CEO Cath Hart, property prices are still on an upward trajectory but at a more measured pace compared to 2024. She noted that while some buyers are taking their time with purchasing decisions, well-presented homes in desirable locations continue to attract strong interest and sell quickly. Sellers are encouraged to set realistic prices and focus on presentation to maximize their chances in the current market. Perth Rental Market TrendsRental prices in Perth also increased, with the median dwelling rent rising 3.1% in January to $670 per week—up 8.9% from a year ago. House rents increased by 1.5% to $680 per week, marking a 6.3% annual rise, while unit rents remained steady at $650 per week, up 12.1% year-on-year.Ms. Hart highlighted that while monthly rent prices continue to fluctuate, the significant slowdown in annual growth rates suggests a more moderate rental market compared to last year. A year ago, annual rental growth was 18.3% for dwellings, 16.4% for houses, and 20.8% for units.For more global update. Click here

11 March

Juwai IQI Newsletter – Real Estate Market – MARCH 2025

Juwai IQI Newsletter – Real Estate Market – MARCH 2025

The global real estate market saw mixed results in March , with some areas improving and others struggling.What else have you missed in March 2025CLick here now! for more info

28 February

India’s Real Estate Boom: Land Acquisitions & Market Trends 2024

India’s Real Estate Boom: Land Acquisitions & Market Trends 2024

INDIA’S REAL ESTATE BOOM: A TRANSFORMATIVE YEAR FOR LAND ACQUISITIONSIndia’s real estate sector witnessed an extraordinary surge in land acquisitions in 2024, with over 2,200 acres of land transacted, marking a 47% year-on-year growth, according to recent reports. This impressive expansion reflects the evolving dynamics of the Indian economy, where demand for housing, warehousing, and industrial spaces continues to drive large-scale investments. Notably, Delhi-NCR, Bengaluru, and Mumbai were key contributors, accounting for nearly 2,000 acres of transactions. Residential projects dominated the acquisitions with 1,200 acres, while industrial and warehousing projects claimed 580 acres, and data centres accounted for 200 acres.Several factors are fueling this trend, including increased urbanization, a burgeoning middle class, and the post-pandemic recovery in demand for high-quality housing and warehousing solutions. The demand for warehousing is particularly noteworthy as India strengthens its position as a global logistics hub. E-commerce giants, quick commerce startups, and manufacturing companies are driving this growth, necessitating vast land tracts for efficient supply chain operations.The shift towards warehousing and industrial projects highlights India’s evolving economic landscape, transitioning from a service-centric economy to one with a stronger industrial base. Additionally, the data centre acquisitions point to the rising importance of India’s digital infrastructure, as businesses adapt to increasing internet penetration and demand for cloud services. As the sector grows, it is poised to create significant employment opportunities and contribute substantially to GDP growth, cementing India’s status as an economic powerhouse.Quick Commerce: Transforming Indian Real Estate with Dark Stores:Quick commerce (q-commerce) is revolutionising India’s retail and real estate sectors by promising ultra-fast deliveries—everything from groceries to electronics—often within just 10 minutes. This fast-paced shopping model thrives on efficiency and convenience, aligning with the increasing digital lifestyle of urban consumers.At the heart of this transformation are dark stores, or micro-warehouses, which are purpose-built for rapid order fulfilment rather than traditional in-store shopping. Typically ranging between 2,500 to 4,000 square feet, these mini-warehouses are strategically located in densely populated urban areas to meet last-mile delivery needs. Unlike retail outlets, dark stores prioritise logistics, making them key to cutting costs and ensuring speedy deliveries.In 2023 alone, the demand for dark store spaces in India reached an impressive 24 million square feet, fueled by the country’s burgeoning q-commerce market, which is projected to grow to $40 billion by 2030 at a staggering 45% CAGR, according to Deloitte. This growth has significantly impacted on real estate trends. Cities such as Bengaluru, Mumbai, and Delhi, along with Tier-II cities, have seen property prices soar by at least 30% in areas where q-commerce companies are expanding.As urban logistics spaces gain prominence, the use of low-value brownfield sites, such as abandoned industrial spaces, underutilized parking lots, or mixed-use buildings, has become a practical solution.These repurposed properties allow for the quick establishment of dark stores, bypassing the high costs typically associated with retail spaces in urban areas.The rise of dark stores is not only reshaping real estate but also redefining the traditional use of ground floors in buildings, which are now being optimized for q-commerce operations. The concept of “market at your fingertips” is driving this real estate shift, marking a significant evolution in how urban spaces are utilized.for more update newsletter, click here!

18 February

Expansion of Mixed-Use Developments Outside Metro Manila

Expansion of Mixed-Use Developments Outside Metro Manila

PROLIFERATION OF MIX-USED DEVELOPMENTS OUTSIDE METRO MANILAIn recent years, the proliferation of office and residential hubs outside Metro Manila, the capital region of the Philippines, has become a notable trend. This shift is driven by several factors, including the need to decongest the overcrowded metropolis, the rise of remote work and digital technologies, and government policies promoting regional development.Economic DecentralizationThe government, along with private developers, is actively pursuing economic decentralization to spread economic activity more evenly across the archipelago. This is evident in the development of new business districts and economic zones in key provinces such as Cavite, Laguna, Batangas, Pampanga, and Bulacan. These areas have seen significant investments in infrastructure, including new roads, airports, and port facilities, making them more accessible and attractive for businesses.Improved InfrastructureKey infrastructure projects, such as the North Luzon Expressway (NLEX), South Luzon Expressway (SLEX), and the ongoing Manila-Clark High-Speed Rail project, are critical to this transformation. These projects enhance connectivity between Metro Manila and surrounding provinces, making it feasible for businesses and residents to relocate outside the congested capital.Real Estate DevelopmentThe real estate sector has responded robustly to the shift, with major developers creating integrated townships that offer both residential and commercial spaces. Developments like Clark Green City in Pampanga and Nuvali in Laguna offer modern amenities, green spaces, and sustainable living options that attract both businesses and families seeking a better quality of life.Growth of Secondary CitiesCities such as Clark in Pampanga, and Cebu and Davao in the Visayas and Mindanao regions, respectively, are rising as alternative urban centers. These cities are experiencing growth due to their strategic locations, availability of skilled labor, and supportive local governance. Consequently, they are becoming focal points for outsourcing and Information Technology-Business Process Management (IT-BPM) sectors, among others.Societal ShiftsThe shift to remote and flexible work arrangements, accelerated by the COVID-19 pandemic, has reduced the necessity for proximity to traditional business districts. This has empowered more people to consider relocating to suburban and provincial areas where housing is often more affordable, and the quality of life is perceived to be higher.Challenges and Future DirectionsWhile the trend of moving outside Metro Manila is promising, it also presents challenges, such as the need for adequate infrastructure, services, and governance in new growth areas. The ongoing commitment of both the government and private sector to address these issues will be crucial to sustaining and leveraging this trend.Overall, the proliferation of office and residential hubs outside Metro Manila reflects a broader transformation in the Philippines’ urban landscape, driven by changing economic, technological, and social dynamics. This trend offers an optimistic outlook for balanced regional development, potentially alleviating the pressures faced by the national capital while stimulating growth across the nation.for more update newsletter, click here!

18 February

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