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Global Economic Outlook 2025: New Rules of Engagement in Trade and Commerce

Global Economic Outlook 2025: New Rules of Engagement in Trade and Commerce

This article is contributed by Shan Saeed, Chief Economist at Juwai IQIThe global economy is witnessing a significant shift. President Trump secured victory in the November 5 election, paving the way for complete control of both houses of Congress. His presidency has already made a notable impact on equity and currency markets. A "Trump premium" in the dollar is expected to result in a 3% appreciation in the dollar index. As of November 14, 11:00 AM KL time, the dollar index is trading at 106.6. Investors generally expect the swift implementation of trade tariffs and tax cuts. However, these measures are likely to exert inflationary pressure on the U.S. economy, complicating the Federal Reserve's ability to cut rates rapidly and transition to an accommodative monetary policy as desired by the market. The 10-year Treasury yields are signaling to the market that inflation is poised to make a strong comeback.TOP 100 BANKS BY MARKET CAPITALIZATION The "Global Systemically Important Banks" (G-SIBs) have outperformed both the Nasdaq-100 and S&P 500 in 2024. Year-to-date (YTD) performance of leading ETFs:QQQ: +21%SPY: +21.8%GSIB: +25.6%Despite concerns about an economic slowdown, these banks have excelled due to:Rising interest rates, which have boosted loanprofitability.Improved credit quality and low loan default rates.Strong demand for investment banking services.Big banks are effectively capitalizing on the benefits of higher interest rates, solidifying their strong performance in 2024.For more info and upadates! Download now!

11 December

Malaysia's Three-Storey Shops Market: A 2020-2024 Overview

Malaysia's Three-Storey Shops Market: A 2020-2024 Overview

This article is contributed by Irhamy Ahmad MRICS, Founder & Managing Director of Irhamy Valuers InternationalIn Malaysia, three-story shops are a prominent part of the commercial real estate landscape, serving as flexible business solutions in both urban and suburban areas. These buildings typically offer three levels, each adaptable for various types of tenants and purposes. A comparison of three-storey shop transactions between 2020 and 2024 reveals notable trends and price changes in Malaysia's real estate market.These properties have undergone significant shifts from 2020 to 2024, shaped by the economic impact of the COVID-19 pandemic, changing consumer behavior, and new commercial trends. Central to Malaysia’s retail and business landscape, three-storey shops have seen transformations in transaction volume, pricing, tenant mix, usage, and investment appeal.The pandemic had a profound impact on pricing in 2020, particularly in urban centers where businesses werestruggling to survive amid lower foot traffic and lockdown restrictions. Property prices in secondary locations also dropped, as investors were hesitant to commit amid economic uncertainties. However, by 2024, property prices have generally stabilized with slight increases as businesses returned to full operation and foot traffic resumed, especially in high-demand areas. Suburban areas near newly developed residential projects also saw increased demand for neighborhood commercial spaces.The following transactions represent preferred addresses for many buyers, synonymous with the middle andupper-middle class, indicating a high level of business activity. They present a general picture of prices during and post-pandemic. The tables also show transaction data, offering a self-explanatory view of these trends.In conclusion, the evolution of the three-storey shop market from 2020 to 2024 reflects its adaptability. The recovery from pandemic lows has brought a demand for flexible, tech-integrated, and sustainable spaces, making these properties in Malaysia valuable for both tenants and investors. The rebound signals growth potential, with an increased focus on suburban areas and community-centric businesses shaping the future of commercial real estate in Malaysia. For more info and update! Download now!

11 December

Strategies To Manage Inflation Risk in International Real Estate Investments

Strategies To Manage Inflation Risk in International Real Estate Investments

Inflation erodes purchasing power, posing challenges for investors. However, real estate is widely recognized as an effective inflation hedge, as property values and rental income often rise in tandem with inflation. With that;Here Are 5 Strategies to Help International Real Estate Investors Manage Inflation Risk.1. Invest Markets with Stable or Controlled Inflation.Some countries maintain moderate inflation levels due to strong economic policies and stable property markets. For example, Malaysia, the United Arab Emirates, and Portugal often experience less volatile inflation, offering investors more predictable returns. This stability reduces exposure to sudden inflationary spikes that could erode property values, making these markets attractive for risk-conscious investors.2. Focus on Real Estate Sectors Less Vulnerable to InflationDifferent property sectors respond to inflation differently. Residential rental properties tend to perform well during inflationary periods, as rental rates can be periodically adjusted to match rising costs. In contrast, commercial properties with long-term leases may lack such flexibility. High-demand sectors like warehouses, logistics facilities, and mixed-use developments in growth regions such as Southeast Asia and Latin America often withstand inflation effectively. These sectors benefit from strong e-commerce and manufacturing demand, supporting long-term property value appreciation.3. Consider Inflation-Linked Rental AgreementsInflation-linked leases and rental agreements are becoming more common in international markets. These agreements adjust rental rates automatically based on an inflation index, protecting investor income from erosion. Countries like Thailand and Turkey frequently offer such arrangements, making them appealing for safeguarding rental income. Additionally, investing in Real Estate Investment Trusts (REITs) focused on inflation-resistant sectors provides exposure to inflation-protected assets without requiring full property ownership, offering a diversified approach to inflation management.4. Invest in High-Demand, Low-Supply MarketsProperty markets with constrained supply and high demand often outperform inflation, as property values in these areas typically appreciate faster than inflation rates. Major urban centers in Australia and developing cities across the Middle East exemplify such markets. Investing in these regions helps ensure property values rise even as inflation increases, providing a built-in safeguard against inflationary pressures. Understanding demand-supply dynamics within specific cities or regions allows investors to capitalize on markets where property prices are likely to grow with or outpace inflation.5. Balance Local and International InvestmentsVersifying investments across local and international properties can further mitigate inflation risk. For example, properties in controlled-inflation markets like New Zealand and Turkey can offset risks from assets in higher-inflation economies. This international diversification reduces reliance on a single economy, enhancing resilience against localized economic challenges and inflation-related issues. A balanced portfolio, incorporating properties in both stable and growth-oriented markets, helps protect purchasing power while ensuring overall portfolio stability.Inflation is an unavoidable economic force, but investors don’t have to succumb to its effects. By selecting markets strategically, focusing on inflation-resistant property types, using inflation-linked agreements, and diversifying internationally, investors can manage inflation risk effectively. As the global economy fluctuates, these strategies can help international real estate investors build portfolios that remain stable, resilient, and profitable despite inflationary pressures.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

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

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

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

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

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

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