With the return of vaccinated international students to the city of Sydney, many believe it will significantly impact the apartment market.

A boost for both landlords and vendors, the absence of international students has impaired the real estate market since the Federal Government shut the international borders in March 2020.

Their absence directly affected landlords who had hoped to lease apartments to students and often to their families.

Sydney saw increased vacancies and lower rents, especially in the inner ring and other tertiary education precincts, despite many other rental markets tightening.

Also, property prices have experienced a boom everywhere but apartment markets which are the typical accommodation for overseas student buyers.

According to the Asian property portal Juwai, the company have noted that universities have enrolled more than 100,000 students living overseas and studying remotely.

Yet, none of these offshore students occupies Australian apartments.

Juwai IQI Executive Chairman Georg Chimel shares;

“Universities have lost hundreds of millions, but Australian landlords have yielded an even larger share of foreign student rental income.

Our best estimate is that Australia will get back to 75 per cent of 2019’s resident international student population in 2022, but that getting back to 100 per cent will take until 2024 or 2025.”

Currently, three out of five international students hail from countries not considered safe for the early resumption of fully vaccinated travel. Still, these could return via Queensland, given the Palaszczuk government’s foresight in building the Wellcamp quarantine facility near Toowoomba.

Mr Chmiel noted that metropolitan suburb profiles had significantly changed during the pandemic.

Click here to read more about Sydney’s current apartment boom.

Source: The Daily Telegraph

Seeking a place to call home while pursuing your studies in Perth, Sydney or Brisbane? No worries, we got the right team to help you with your findings. Have a chat with IQI Australia and find the ideal home!

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Cross-border buyers, with the majority from Asia, purchased 500,000 homes in the G7 countries last year, worth an aggregate value of US$250 billion, says property portal Juwai.com.

While the largest number of cross-border property buyers originate in mainland China, significant numbers also come from the Chinese territories of Hong Kong and Taiwan, and Singapore, India, Japan, Korea, and Malaysia.

Juwai.com said Asia is the scene of wealth creation at a pace not seen anywhere else.

“Asia now has nearly the same number of ultra-high net worth individuals as Europe, but its population of the wealthy is growing at almost twice the rate as is Europe’s, that is 44 per cent versus 23 per cent, respectively,” the firm said.

Juwai IQI executive chairman Georg Chmiel said while the coronavirus pandemic has dealt a painful blow to economies all over the world, the virus has also given added motivation to cross-border buyers from Asia.

In a survey conducted before the pandemic, the top five countries where wealthy Asians look at to purchase residential property are the US, UK, Singapore, Australia, and Canada.

Juwai.com said non-China Asian buyers account for 20 per cent of the real estate buying enquiries that it receives, compared to China’s 71 per cent, the Americas’ four per cent, Europe’s three per cent, and the Middle East and Africa’s one per cent.

In Malaysia, eight of the top 10 foreign real estate investor groups hail from other parts of Asia.

Official data on participation in Malaysia My 2nd Home visa program reveals that citizens from the mainland, Hong Kong, Taiwan, China, Japan, Bangladesh, Korea, and Singapore acquire more visas and likely also more Malaysian real estate than other nations.

Singapore is a popular destination market for other Asian buyers, especially wealthy professionals and business owners due to its political stability and stable markets.

“Investment by less well-heeled buyers is discouraged by Singapore’s high 20 per cent foreign buyer stamp duty. Foreigners acquired 315 apartments in Singapore’s prime core central region in the first nine months of 2019,” said Juwai.com.

Click here to read more about it. 

Source: New Straits Times

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Will 2020 be the boom-time for Malaysian real estate?

Residential real estate prices, rents, and sales numbers will increase significantly in 2020 and 2021, both nationally and in the eight states preferred for investment, according to a survey of 386 Malaysian real estate agents. The survey was conducted in November 2019 by Juwai IQI, which is one of the largest real estate groups in Southeast Asia with more than 7,000 agents.

Kashif Ansari, Group Executive Director of Juwai IQI, said:

“This survey is the first large-scale effort to quantify and forecast trends in the Malaysian real estate industry by asking industry experts. We hope it will become a trusted and important for decision-makers as similar indexes in other industries, such as the Purchasing Managers’ Index.

We share the positive outlook reported in the survey, within rational bounds.

“Agents have a very strong, positive outlook on the future of the residential real estate sector over the next 12 and 24 months.

“The survey findings show that the states with the most robust price-growth outlook are Kuantan and Ipoh. Respondents predict prices in Kuantan will grow 9.4% over the next 12 months. Prices in Ipoh are pegged to grow 7.6% over 12 months. The states with the weakest outlook for price growth are Penang, with 2.1% forecast growth, and Sarawak with forecast growth of 3.4%.

“When it comes to the rental market, the findings show that Ipoh has the highest growth forecast of any state, with rents expected to swell by 12.25%. Overall, Ipoh has the most positive outlook. One-hundred per cent of respondents in Ipoh expect local first-time buyers to buy more properties in the state over the next 12 months than in the past 12 months. At the same time, 87.5% of respondents predict local upgrade buyers will also make more property purchases in the coming year.

“Of the various buyer groups, the buyers with the most bullish forecast are local first-time buyers. Nearly two-thirds of respondents, or 64.7%, believe first-time buyers will increase the number of transactions they complete in the coming year, versus only 6% who think they will not. Local first-time buyers are the largest buyer group in the new-build market and the third-largest in the subsale/secondary market.

“The buyer group with the largest share of nation-wide subsale/secondary market is local upgrade buyers. By contrast, relatively few local upgrade buyers purchase in the new-build market. They have the lowest share of transactions nation-wide of any domestic buyer group.

“Foreign buyers often seem to get more public attention than other buyer groups, but they account by far for the smallest share of all transactions. Foreign buyers purchase many fewer homes than do local first-time buyers, local investors, or local upgrade buyers. That is true in both the new-build and subsale/secondary markets. Respondents report that foreign buyers account for 19.3% of new-build transactions and 19.7% of subsale/secondary sales.

“Industry experts expect all buyer groups to purchase more real estate in the year to come. Nationally, 64.7% of respondents expect local first-time buyers to close more transactions over the next 12 months. Local upgrade buyers are expected to purchase more property in the coming year by 61.2% of respondents, local investors by 65% of respondents, and foreign buyers by 79.7% of respondents. Note that these forecasts do not specify the scale of the increase in transaction numbers.”

Juwai.com Executive Chairman Georg Chmiel said:

“In 2020, we expect the economy to grow by 4.3% to 4.8%, even in the current unsettled global environment. Malaysia’s exports and trade surplus will grow in 2020. The country is attracting companies and operations that otherwise might have gone to China.

“The lower price threshold for foreign buyer purchasing will also help absorb some of the unsold inventory that has been weighing on the market. While the price thresholds are only being lowered for one year, hopefully, that will give foreign investors enough time to purchase. For the market to be healthy, developers need to sell those unwanted units so they can build more projects that are suitable for local buyers. Our recent survey of hundreds of agents found that 71% approve of the lower foreign buyer price threshold.

“We expect all these factors to support the residential real estate market in 2020.”

Source: Markets Insider

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Juwai IQI a newly merged entity will provide greater access for Chinese property investors to buy homes in the Asia Pacific region via the website or offline marketing by IQI Global.

As Asia’s largest property technology group, the company aims to connect more potential property buyers from China to the Asia Pacific market.

Juwai.com currently reaches 3.3 million users monthly with 2.8 million listings from 91 countries.

IQI Global has more than 5,000 salespeople in 25 offices across 15 countries.

IQI Global CEO Kashif Ansari said Malaysian properties are not marketed well compared to regional peers, and the Juwai IQI synergy is poised to address the issue.

For the Malaysian property market, Chmiel said about 75% of visitors to the website are from China, while the remainder is Chinese nationals abroad. He said Juwai.com’s focus is to advertise properties valued US$250,000 (RM1.02 million) and above.

He said the merger will also provide access to cross-border property buyers from ASEAN, with over 600 million population, and the Middle East the world’s two biggest sources of cross-border buyers.

Juwai IQI operates under two separate brands, Juwai.com for online advertising and media services, while IQI Global undertakes project marketing, sales of property developments and secondary market properties.

Chmiel said real estate developers can benefit from the combined Juwai IQI through the integrated online marketing and offline sales functions for new developments.

He said Juwai IQI will continue feeding the leads directly to real estate agents of newly-developed properties and resale of existing properties.

Buyers from abroad interested in a development project across the world can look at the online promotions and the transaction can be completed using IQI Global’s house sales agents in the country.

SOURCE: The Malaysian Reserve

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Real estate companies Juwai.com, China’s largest online marketplace for overseas properties and IQI Global announced a merger to form Juwai-IQI, a global proptech group specialized in new development properties.

Juwai.com currently reaches 3.3 million monthly users with its 2.8 million listings from 91 countries, and IQI Global has more than 5,000 salespeople in 25 offices across 15 countries

With the merger, the two companies will be able to combine online marketing and offline sales functions for new developments.

Juwai-IQI will operate under two separate brands: Juwai for online advertising and media services and IQI Global for project marketing, property development sales, and secondary market properties. Its platform will provide real estate agents access to property buyers in Southeast Asia and the Middle East, in addition to potential customers in greater China.

It will also offer end-to-end solutions for new property developers – creating buyer interest in a development project by promoting to millions of consumers online and completing transactions through its in-house sales agents.

Source: TechAsia / KopiandProperty / AIMGroup

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