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Homestay Investment: Insights From Malaysia’s Tourism Data

Homestay Investment: Insights From Malaysia’s Tourism Data

The Malaysian tourism industry is evolving, creating exciting opportunities for short-term rental investments like homestays. If you're considering purchasing a property to transform into a profitable homestay, it’s crucial to look beyond surface-level data. Here’s an in-depth analysis of the latest data on hotel occupancy rates (AOR), guest volumes, and inventories from January to June 2024 to guide your decision-making process.Data Analysis Findings:1. High Occupancy Doesn’t Always Equal High ReturnsPahang recorded the highest average occupancy rate (AOR) at 74.6% during the first half of 2024. While this suggests strong demand, Pahang also has 504 hotels with over 34,000 rooms available. The high inventory means stiff competition, particularly in popular areas like KuantanKuala Lumpur is another standout, attracting over 10 million hotel guests—a 17.7% increase from 2023—with an impressive balance of domestic and international travelers. However, the city is saturated with 455 hotels and 62,639 rooms. To succeed in this market, your homestay must offer something truly unique.2. Low Supply Equals High OpportunityMelaka, despite having a relatively modest AOR of 42.9%, presents a unique investment opportunity. With only 354 hotels and 19,997 rooms, competition is comparatively low. It's rich heritage and steady tourist inflow suggest untapped potential, particularly for properties near key attractions such as Jonker Street or A Famosa.3. Hidden Gems in the DataSmaller states like Perlis (AOR: 40.8%) and Putrajaya (AOR: 55.4%) might not immediately catch your eye, but their low hotel inventories—just 44 hotels in Perlis and 12 in Putrajaya—could mean less competition and higher chances for success in niche markets.Source: napic2.jpph.gov.my4. How to Read Between the LinesInvestors need to understand that hotel occupancy rates are just one piece of the puzzle. For example:• High occupancy rates (AOR): Reflect demand but may indicate stiff competition if hotel inventories are high.• Hotel guest volumes: Indicate tourist preferences, whether for business, leisure, or heritage travel.• Hotel inventories: Reveal market saturation, directly impacting the success of homestays inthe area.5. Example: Pahang vs. Melaka• Pahang: A 7.2% increase in total guests may seem promising, but with so many hotels available, you’ll need a standout property to compete.• Melaka: Although it experienced a smaller increase in guest numbers (2.3%), its lower hotel count creates a favorable environment for steady, long-term returns with less intense competition.While Pahang and Kuala Lumpur may appear to be obvious choices due to their high demand, factors like competition, property prices, and unique selling points should guide your decision. Conversely, Melaka and smaller states like Perlis and Putrajaya offer opportunities for niche markets, especially for properties positioned near tourist attractions or designed with distinctive features.Ultimately, the "best" location depends on your investment goals:• Seeking high footfall? Explore Kuala Lumpur or Pahang.• Looking for a quieter market with growth potential? Consider Melaka or Putrajaya.Data should inform your decision, but understanding local trends, traveler behavior, and employing creative marketing strategies can make all the difference. Homestay investment isn’t just about picking the busiest location; it’s about understanding what guests want—and offering it better than anyone else.To Continue Reading, Click Here to Download!DownloadTo get the latest news and insights on real estate, click the image below and join our Whatsapp channel!

10 December, 2024

Hong Kong Prime Rate Cut Boosts Market Recovery in 2024

Hong Kong Prime Rate Cut Boosts Market Recovery in 2024

PRIME RATE REDUCED BY 25BPS FOLLOWING RECENT US RATE CUT Residential • In October, transaction volume in the primary market rebounded to 1,611 units, while the secondary market saw an increase to 3,086 units, resulting in an overall month-on-month (m-o-m) increase of 64.9%. Mass residential capital values declined by 0.9% m-o-m in October, following a 1.3% decline in September. Retail NELSON LI Head of IQI Hong Kong • Following the US Federal Reserve’s rate cut in early November, major banks in Hong Kong reduced their Prime Rate by 0.25%, from 5.625% to 5.375%, exceeding market expectations. We anticipate that further Prime Rate reductions may be moderate, as the current cuts appear to be front-loaded. Notably, the HIBOR stood at 4.13% in mid-November, significantly higher than its level in November 2022, when the Prime Rate was raised to 5.375% and HIBOR was at 3.22%. • Market sentiment improved in November, driven by the competitive pricing of new property launches. Cullinan Sky in Kai Tak sold 95% of its units in the first phase, with 895 units snapped up across four launches in a single day. Meanwhile, Echo House in Cheung Sha Wan sold all 198 units launched on the first day. • Among major luxury transactions, a unit at Mont Verra in Beacon Hill was sold for HKD 260.0 million, equating to HKD 57,055 (~USD 7,300) per sq ft (saleable area). Source: 2024 Jones Lang LaSalle IP, Inc. Retail• Total retail sales showed signs of stabilizing, dipping by 6.9% year-on-year (y-o-y) in September, compared to a 10.0% decline in August. Most major retail categories experienced narrower sales decreases, with "jewelry, watches and clocks, and valuable gifts" moderating to a 17.9% decline, compared to the 24.4% drop in August. Meanwhile, online sales fell by 11.8%. • Restaurant receipts in Q3 2024 declined by 1.3% y-o-y, translating to a 0.3% year-to-date drop. Among restaurant categories, bars recorded the steepest receipts decline at 24.5%, while fast food shops saw an 11.1% increase in receipts. • Total inbound visitations in September approached 3.1 million, contributing to a 39.7% y-o-y year-to-date surge during the first three quarters of the year. • Swatch is set to open a new outlet at a ground-floor (G/F) shop unit (1,781 sq ft) in Mira Place on Nathan Road in Tsim Sha Tsui, for a reported monthly rental of HKD 400,000, replacing Furla as the previous tenant. Meanwhile, French apparel retailer MARITHÉ FRANÇOIS GIRBAUD has leased a G/F shop unit (1,512 sq ft) on Pak Sha Road in Causeway Bay for their first store in Hong Kong. The reported monthly rental of HKD 320,000 represents approximately a 7% increase over the rent paid by the previous tenant, Basao Tea. • In Wan Chai, several connected G/F shop units (totaling 4,300 sq ft) in the Wai Tak Building were sold for HKD 146.0 million by Allied Century Holdings Ltd to Hing Lung Properties Development Ltd at an estimated initial yield of 5.6%. The vendor is reportedly affiliated with the Tang Shing-bor family, and the property is currently tenanted by a mahjong entertainment operator.Uncover key insights into Hong Kong's December 2024 real estate trends. Find out what's driving sales, prices, and listings- read the full update here!Data extracted in December 2024Read More

9 December, 2024

Vietnam: Ho Chi Minh City Rents Surge 20% in 2024 Amid High Demand

Vietnam: Ho Chi Minh City Rents Surge 20% in 2024 Amid High Demand

This article is contributed by Dustin Trung Nguyen, Country Head of IQI VietnamThe cost of renting rooms in Ho Chi Minh City has risen by 20% in the first 10 months, reaching a minimum of VND3 million (US$118) per month, according to a report. This marks the largest increase in the past two years, based on data from property listing platform Nha Tot, which excludes "sleep boxes" and cage homes.As of last month, average rents had reached VND3.8 million, with some properties commanding up to VND6.6 million. Price hikes have been observed in most districts, from downtown areas to the suburbs. Despite the steep increases, demand for rooms and apartments in HCMC remains high. Inquiries for such accommodations in the third quarter increased by 16% to 60% compared to the previous quarter. The highest demand was recorded in Thu Duc City, home to many universities. Another property listing platform, Batdongsan, confirmed this trend, reporting a 38% year-on-year increase in inquiries for rooms in HCMC in October. Nguyen Hoang Uyen, CEO of Nha Tot, attributed the price hikes to limited supply. For example, in District 7, demand surged by 59%, but no new supply was recorded. She noted that many students are struggling to find affordable housing near their universities. "The price hikes are a major concern for students, especially those coming from other localities," she said. Dinh Minh Tuan, director of Batdongsan’s southern business division, explained that rising property prices in recent years have forced many prospective homebuyers to abandon their plans to purchase homes and opt for renting instead. This shift has increased rental rates for rooms. Additionally, authorities have tightened fire safety regulations, requiring landlords to make costly property upgrades. The average income of a Vietnamese worker in the first six months was VND7.5 million per month, a 7.4% year-on-year increase, according to the General Statistics Office.Stay updated on HCMC’s rental market trends—subscribe for expert insights and advice on navigating rising costs!read More

9 December, 2024

Six New Trump Towers Coming to India: Luxury Expansion After 2024

Six New Trump Towers Coming to India: Luxury Expansion After 2024

INDIA TO WELCOME SIX NEW TRUMP TOWERS AFTER 2024 U.S. ELECTION WIN Following Donald Trump’s recent election victory, Kalpesh Mehta, founder of Tribeca Developers and Indian partner of the Trump Organization, has announced plans to bring six new Trump-branded properties to India. These projects, estimated at Rs 15,000 crore, will make India the largest market for Trump properties outside of the United States. The six new developments—planned for Mumbai, Pune, Gurugram, Bengaluru, Hyderabad, and Noida—will include residential and commercial spaces, along with India’s first Trump-branded golf and villa complex. The Trump World Towers label, reserved for the brand’s most prestigious projects, will add ultra-luxury appeal to some of these properties. Additionally, this expansion will debut Trump’s first large-scale office project in India, located in Pune, marking the brand's entry into the Indian commercial market. These properties are scheduled for launch announcements, with official openings expected in early 2025. Members of the Trump family, including Donald Trump Jr. and Eric Trump, are anticipated to visit India to mark the opening, a gesture highlighting the family's dedication to their brand’s growth in India. With its unique positioning, this expansion not only strengthens the Trump brand in India but also deepens US-India business ties as the country becomes a go-to destination for high-end real estate investment. India’s luxury real estate market is growing swiftly, with increasing investments from HNIs, celebrities, and NRIs, and this expansion is solidifying India’s status as a global luxury real estate hub. India’s APAC Office Market: Pioneering Growth into 2025 India’s office real estate market is setting a powerful pace in the Asia-Pacific region as demand accelerates and workspace priorities shift toward adaptability, productivity, and sustainability. With a substantial 14.4 million square feet of new office space introduced in Q3 2024, India now leads the APAC market, securing over 70% of total demand this quarter. Q3 2024 alone saw office leasing reach 17.3 million square feet, marking a 41% year-on-year increase and indicating that corporate expansion and back-to-office trends are gaining strength across sectors. Vacancy rates, maintained at around 17%, reflect a healthy demand-supply balance, providing tenants with competitive options and market resilience. Demand is diverse, with global capability centers (GCCs), tech firms, and Indian corporates continuing to fuel expansion. Coworking and flexible spaces have also seen a substantial uptake, providing versatile environments that appeal to both startups and established businesses.In 2025, India’s office real estate market is set to not only support the evolving workspace landscape but also strengthen its role as a global office space leader, with rental rates being higher than pre-COVID levels, particularly in metro areas. India’s APAC office market dominance is poised to continue as flexible and sustainable workspaces gain traction.Uncover key insights into India's December 2024 real estate trends. Find out what's driving sales, prices, and listings- read the full update here!Data extracted in December 2024Read More

9 December, 2024

Canada Real Estate Insights: Toronto, Vancouver, and Quebec Market Trends

Canada Real Estate Insights: Toronto, Vancouver, and Quebec Market Trends

This article is contributed by Yousaf Iqbal, Country Head of IQI CanadaIn October 2024, the Greater Toronto Area saw a strong increase in sales and new listings, although the overall price index declined. Meanwhile, Metro Vancouver experienced a rise in sales, but home prices continued to fall. Quebec’s real estate market observed increased listings but a slight dip in sales, reflecting a shift in supply and demand dynamics. These trends indicate a dynamic market where sellers are more active, yet price adjustments are ongoing across these regions. The overall landscape reflects a balance of strong demand and evolving market conditions.TorontoGreater Toronto Area (GTA) REALTORS® reported 6,658 sales through the Toronto Regional Real Estate Board(TRREB) MLS® System in October 2024—up 44.4% compared to October 2023. New listings also increased by 4.3% during the same period. The MLS® Home Price Index (HPI) Composite benchmark dropped by 3.3% year-over-year. However, the average selling price of $1,135,215 marked a 1% increase compared to October 2023. On a seasonally adjusted month-over-month basis, both the MLS® HPI Composite and the average selling price edged up slightly compared to September 2024.VancouverThe MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver iscurrently $1,172,200. This represents a 1.9% decrease compared to October 2023 and a 0.6% decrease compared to September 2024. The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,477, a 24.8% increase from October 2023 (11,599). This is 26.2% above the 10-year seasonal average (11,475). Greater Vancouver REALTORS® (GVR) report that residential sales in the region totaled 2,632 in October 2024, a 31.9% increase from the 1,996 sales recorded in October 2023. However, this was 5.5% below the 10-year seasonal average (2,784).QuebecWant to navigate Canada’s evolving real estate market with confidence? Contact us for tailored insights and advice!Download here

9 December, 2024

Philippines Property Market 2024: Trends & Insights

Philippines Property Market 2024: Trends & Insights

PROPERTY MARKET: RESIDENTIAL A Sea Change The Metro Manila pre-selling condominium segment continues to see an extended remaining inventory life. This has compelled developers to take a more cautious stance and temper new launches in the capital region. While the central bank’s decision to cut interest rates bodes well for the sector, we do not expect the reduction to have an immediate impact on mortgage rates, which remain elevated. The headwinds in the property sector are prompting developers to continue offering innovative and attractive payment terms, as well as early move-in promos. Firms are also providing top-notch amenities and after sales service, which should help buoy demand in Metro Manila. The region continues to see a substantial number of unsold ready-for-occupancy (RFO) units. Developers are pivoting to stay afloat. More leisure-themed projects, including golf communities, are being launched from Luzon to Mindanao, injecting much-needed optimism into the residential sector, which is still suffering from elevated mortgage rates, high land values, rising prices of construction materials, and the exodus of POGOs.* RLC Buying PHP3.5 Billion Land for Taguig Project Robinsons Land Corporation (RLC) is investing PHP3.5 billion (USD 60.3 million) for the acquisition of a 61,761-square-meter (664,800-square-foot) land in Taguig City. The land will be developed into an integrated community called Bonifacio Capital District. The mixed-use project will be a joint venture partnership between RLC and the Bases Conversion and Development Authority (BCDA). Located beside the New Senate Building, the project will offer residential, commercial, office, hotel, and recreational spaces. Megaworld Allots PHP15 Billion for Ilocos Beachside Township Megaworld Corp. is investing PHP15 billion (USD 259 million) for the development of Ilocandia Coastown, an 84-hectare (208-acre) beachside township in Laoag, Ilocos Norte. The township will feature upscale residential developments, a shophouse district, a commercial district, a town center, and a 1.4-kilometer beachfront. SM Expanding Footprint in ClarkThe SM Group is allotting PHP2 billion (USD 34.5 million) for the construction of several hotels, a convention center, and a transport terminal in Clark, Pampanga. The terminal will connect SM City Clark to the upcoming North–South Commuter Railway (NSCR). Meanwhile, the group plans to add more hotels under the Park Inn brand over the next five years to complement the SMX Convention Center Clark.Uncover key insights into Philippines December 2024 real estate trends. Find out what's driving sales, prices, and listings- read the full update here!Data extracted in December 2024Read More

9 December, 2024

Western Australia Tops National Economic Growth with Strong Retail and Housing

Western Australia Tops National Economic Growth with Strong Retail and Housing

This article is contributed by Lily Chong, Country Head of IQI AustraliaWestern Australia has officially claimed the top spot in economic performance nationwide, according to the latest CommSec State of the States report. This marks WA's first top ranking since 2014, bolstered by strong indicators in retail spending, low unemployment, and record-setting population growth, which helped WA surpass all other states. WA Premier Roger Cook highlighted that the state's economic strength is a key driver of national prosperity. Currently, WA is experiencing a 3.11% annual population growth, which has contributed to a 10.5% increase in retail spending in the June quarter of 2024. The population milestone of reaching 3 million people has also spurred a rise in car sales, which are up 25% compared to the decade average. However, this growth spurt has come with its challenges: inflation in Perth is the highest in the nation at 4.6%, and the building sector remains under-resourced, putting pressure on new housing developments. Despite these challenges, WA's economic outlook remains promising. Future performance is expected to stay strong, though rising costs and market demands may influence the state’s ability to maintain this momentum. Property Market Set for Record Growth Perth’s property market is equally impressive, with forecasts from the Real Estate Institute of WA (REIWA) predicting a 25% growth in house prices and a 20% rise in unit prices by the end of 2024. This could push the median house price to $750,000 and units to above $500,000 by year-end. As of September, the median house price had reached $707,000—a 17.8% increase since December 2023—and median unit prices had hit a record $470,000. REIWA CEO Cath Hart attributes this surge to continued population growth and limited housing stock. Although home build times have improved, housing completions remain low, keeping demand strong and exerting upward pressure on prices. While factors like interest rates and upcoming elections could moderate growth, conditions remain favorable for the market's continued upward trend. Perth Rental Market Eases Amid Higher Prices Perth’s rental market shows signs of moderation, with median rent prices for houses and dwellings remaining stable at $650 per week, while unit rents have risen to $640. Vacancy rates, which increased from a low of 0.4% in March to 1.6% in September, indicate a gradual easing of rental pressures. According to Hart, further rental increases are likely to be modest as the market approaches an affordability ceiling and additional supply enters the market.Stay ahead of the curve—explore more insights on Western Australia's thriving economy and property market. Subscribe now for the latest updates!Data extracted in December 2024Read More

9 December, 2024

Pakistan Real Estate Outlook 2024: Key Trends and Opportunities

Pakistan Real Estate Outlook 2024: Key Trends and Opportunities

REPORT OF IQI KARACHI FOR MONTHLY NEWSLETTER – DECEMBER 2024The real estate investment outlook for Pakistan in 2024 is shaped by several key factors, including economic conditions, political stability, regulatory changes, and urbanization trends. Here are some of the major trends and expectations.Economic Recovery and GrowthPakistan's economy has faced challenges due to inflation, currency depreciation, and political uncertainty. However, with potential economic reforms and a focus on stabilizing the macroeconomic environment, there could be a gradual recovery, boosting investor confidence in the real estate sector.Overseas Pakistani InvestmentOverseas Pakistanis are a significant source of real estate investment. The government is likely to continue offering incentives to attract remittances into the real estate sector, such as secure and transparent online platforms for property transactions.Commercial Real Estate GrowthThe commercial real estate sector is likely to see growth in 2024, particularly in major cities. The rise of e-commerce, retail, and the service industry will drive demand for commercial spaces. Additionally, the IT and tech sectors are expanding, leading to increased demand for office spaces.Government InitiativesThe government may continue to implement policies aimed at boosting the real estate sector, such as tax incentives, amnesty schemes for real estate investors, and development projects under the China-Pakistan Economic Corridor (CPEC). These initiatives are expected to enhance infrastructure and create new investment opportunities.Emaar Pakistan – Your Next Big Investment?Emaar's projects in Karachi, Pakistan, have emerged as attractive investment opportunities, especially for overseas Pakistanis. Emaar, a global property developer known for its iconic projects like the Burj Khalifa in Dubai, brings a reputation for quality, luxury, and modern urban living to Karachi. Here's why these projects are appealing:Reputation of EmaarEmaar is a well-known and trusted brand in real estate, particularly among overseas Pakistanis familiar with their projects in the Middle East. This brand recognition instillsconfidence in the quality, timely delivery, and long-term value of their developments.Prime LocationsEmaar’s projects in Karachi are located in prime areas, offering excellent connectivity, accessibility, and proximity to key commercial and recreational hubs. These locations are attractive to both residents and investors, ensuring strong demand and potential for capital appreciation.Luxury and Modern AmenitiesEmaar's developments are known for their luxury and modern amenities. Projects like ‘Crescent Bay’ in Karachi feature high-end apartments, state-of-the-art facilities,including gyms, swimming pools, shopping centers, and scenic views of the Arabian Sea. These features make the properties desirable for those seeking a premium lifestyle.High Rental YieldsGiven the demand for high-quality living spaces in Karachi, Emaar’s properties often offer strong rental yields. Overseas Pakistanis looking for income-generating investments can benefit from the rental demand, particularly from expatriates and affluent locals.ConclusionEmaar’s projects in Karachi are highly attractive to overseas Pakistanis due to the combination of the developer’s international reputation, the strategic location of their properties, luxurious amenities, and the potential for strong returns on investment. As Karachi continues to grow and modernize, these projects are likely to remain a popular choice for those looking to invest in Pakistan's real estate marketUncover key insights into Pakistan's December 2024 real estate strend. Find out what's driving sales, prices, and listings- read the full update here!Data extracted in December 2024Read more

9 December, 2024

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