Newsletter

Policy Reform Takes Centre StageVietnam’s residential market is entering the final quarter of 2026 with policy, rather than pricing, driving the conversation. Resolution 21-NQ/TW is set to shape the next round of Land Law and housing amendments, including proposals linking apartment use to a building’s service life and placing greater reconstruction obligations on owners. The changes could also introduce heavier taxation on excess property profits and vacant or unused assets, while land allocation may increasingly favour commercial apartment supply. MBS Research expects some new apartment projects could shift toward 50–99-year tenures, although implementing rules have not yet been issued. Despite the uncertainty, activity remains substantial. Nearly 34,000 new homes were launched nationwide in Q2, with around 19,600 units sold, equivalent to an absorption rate of approximately 58%. Average primary apartment prices reached around VND 80 million per sqm, up 10% from 2025. Strong Economy Meets Financing PressureHanoi illustrates the market’s growing divide. Q2 sales fell 45% year-on-year, even as luxury-led launches pushed primary prices up 36% to about US$4,659 per sqm. Mortgage rates of 12–14% remain the biggest obstacle for first-time buyers. At the same time, Vietnam’s macroeconomic backdrop remains strong. GDP grew 8.39% year-on-year in Q2, while registered FDI reached US$40.63 billion in the first eight months, up 55.4%. Of this, US$5.32 billion was committed to real estate. OutlookVietnam is likely to remain a selective, end-user-led market rather than enter a broad rally. High financing costs and new legal considerations will make cash strength, legal clarity and land-backed assets increasingly important.For buyers and investors, due diligence around ownership structure, land-use rights and project legality will matter as much as location and product quality. Vietnam, October 2026The contents of this article were contributed by Dustin Trung Nguyen, Head of IQI Vietnam.Download to see insights from other country marketsDownload

Luxury Segment Drives Bangkok Condominium ActivityDowntown Bangkok recorded more new condominium launches in H1 2026 than during the same period a year earlier, with luxury and super-luxury developments emerging as the main drivers of new supply. Completed condominium projects achieved an average sales rate of 93%, led by the luxury segment at 95%. Projects still under construction recorded a lower average sales rate of 52%, although the super-luxury segment significantly outperformed at 85%. The figures suggest that buyers are becoming more cautious, but demand remains strong for premium developments offering the right combination of location, product quality and brand strength. This reinforces the increasingly selective nature of Bangkok’s upper-end property market.Foreign Buyer Demand and Branded Residences Gain MomentumForeign participation is becoming a more important component of central Bangkok condominium demand. Thai buyers accounted for 68% of purchases, while foreign buyers represented 32%—well above the average 18% foreign-buyer share recorded between 2021 and 2025. In the super-luxury segment, the leading overseas buyers came from Japan, the United Kingdom, Taiwan and Russia. Branded residences are also becoming an increasingly important market driver, strengthening international recognition and helping developments differentiate themselves through reputation, service and perceived value. OutlookThailand’s premium residential market is likely to remain selective but resilient, with the strongest demand focused on well-located, differentiated projects. As competition intensifies, success in the luxury and super-luxury segments will depend less on price alone and more on brand, product quality, location and overall value.The contents of this article were contributed by Somsak Chutisilp, Head of IQI Thailand.Download to see insights from other country marketsDownload

New Home Sales Rebound SharplySingapore’s private residential market started the second half of 2026 on a stronger note, with new home sales rebounding after two consecutive months of decline.According to URA data, new private home sales jumped from 156 units in June to 731 units in July 2026, more than quadrupling month-on-month. However, sales were still 22.2% lower year-on-year compared with the 940 units sold in July 2025. The rebound was driven mainly by two major launches: Dunearn House in the Core Central Region and Lentor Gardens Residences in the Outside Central Region. The projects achieved healthy take-up rates of 55.8% and 54.1%, respectively. Dunearn House benefited from its first-mover position in the new Turf City Precinct, while Lentor Gardens Residences attracted buyers with efficient layouts, accessible pricing and proximity to Lentor MRT and Lentor Modern Mall. Suburban Demand Leads Developer SalesThe Outside Central Region accounted for 45.7% of July developer sales, or 334 units, making it the strongest-performing market segment. The Core Central Region contributed 32.1%, while the Rest of Central Region accounted for 22.2%. Luxury demand also remained present, including a S$17.3 million unit at Skywaters Residences, sold at S$5,880 per sq ft. OutlookThe strong performances at Dunearn House and Lentor Gardens Residences have given Singapore’s residential market a positive start to H2 2026. Buyer demand should remain selective, with well-located and competitively priced launches likely to perform best.Upcoming projects such as Amberwood at Holland and Lucerne Grand will be key launches to watch as the year progresses. The contents of this article were contributed by Raymond Khoo, Vice President, Orange Tee & Tie.Download to see insights from other country marketsDownload

Market Growth Becomes More SelectiveSaudi Arabia’s property market entered the second half of 2026 in a period of recalibration. Long-term fundamentals remain strong, but residential demand is becoming increasingly price- and affordability-sensitive, favouring well-located and correctly priced projects over broad market speculation. Real estate transaction value reached SAR 112 billion in Q1 2026, up 6.8% year-on-year, while Q2 recorded 53,663 transactions worth SAR 72.3 billion. Residential prices increased 1.3% year-on-year, but financing conditions and affordability are playing a larger role in buyer decisions. Demand remains structurally supported by population growth, household formation and Saudi Arabia’s homeownership agenda, although buyers are becoming more selective about value, location and end-user demand. Riyadh Office Market Remains a StandoutRiyadh continues to offer one of the strongest commercial property stories. Prime office rents reached SAR 3,320 per sqm in Q2 2026, up 3% year-on-year, while Grade A occupancy remained near full capacity. Limited high-quality supply, corporate expansion and continued Vision 2030 investment are supporting office demand. Broader opportunities are also emerging across hospitality, logistics, industrial, mixed-use and infrastructure-linked assets, supported by tourism development, economic diversification and major construction activity. OutlookSaudi Arabia remains a positive long-term growth market, but investment is shifting toward a more fundamentals-driven approach. Riyadh is likely to remain the strongest opportunity, while investors should prioritise location, tenant or end-user demand, cash flow visibility and development execution.Affordability pressure, financing conditions and differences between prime and secondary locations remain key risks, reinforcing the need for a selective rather than broad-based investment strategy.The contents of this article were contributed by Shareef Ghaleb Kattan, Head of IQI Saudi Arabia.Download to see insights from other country marketsDownload

Residential Recovery Moves Into Clearer ViewThe Philippine property market is showing stronger signs of recovery, led by a sharp improvement in residential absorption.In Metro Manila, preselling net take-up surged 765% year-on-year in Q1 2026, driven mainly by the economic and affordable segments. As a result, remaining inventory life fell to 6.8 years, down from a peak of 13.4 years in mid-2025. Developers are now prioritising the clearance of ready-for-occupancy stock before launching new projects, while completions are expected to decline from 2027 onward. Vacancy is still projected to reach 25.6% by year-end, but this largely reflects earlier supply decisions rather than current demand conditions. Demand also remains healthy in well-priced fringe locations such as the C5 Corridor and Katipunan, reinforcing the importance of the right combination of product, location and pricing. Commercial and Industrial Demand Adds DepthThe recovery is also being supported by stronger commercial demand. The Philippines is ranked as the world’s second-largest GCC delivery location, with the GCC workforce projected to reach around 289,000 professionals across approximately 200 centres in 2026. This is supporting demand for prime CBD offices and key provincial markets. Tourism has also improved, with 3.16 million international arrivals in H1 2026, up 5.4%, while hotel average daily rates rose 2.4%. Industrial remains another strong segment, supported by new logistics supply and PHP 81.4 billion in approved foreign manufacturing pledges. OutlookThe Philippines appears to be entering a confirmed recovery phase, but opportunities remain selective. With buyer-friendly pricing gradually being absorbed and future supply becoming more constrained, well-located residential, office and industrial assets may benefit most as the market continues to improve.The contents of this article were contributed by Dara Ko-Saavedra, Head of IQI Philippines.Download to see insights from other country marketsDownload

Asia Pacific Defies Global ExpectationsThe global economy has remained more resilient than expected in 2026 despite persistent inflation and elevated energy prices. The IMF projects global growth of 3.0% in 2026, rising to 3.4% in 2027, while Southeast Asia’s five largest emerging economies are expected to grow 4.1% this year. Asia Pacific is performing particularly strongly. CBRE raised its 2026 regional growth forecast from 3.9% to 4.3%, supported by demand for AI-related products and semiconductors. Commercial real estate investment across the region also increased 27% in the first half of 2026, despite higher interest rates in several markets. Property investment momentum remains robust. JLL recorded US$47 billion in Asia Pacific property investment in Q1 2026, the strongest first quarter on record, followed by a second quarter in which investment rose 38% year-on-year. Property and Gold Remain Key Portfolio AnchorsRental returns continue to support the investment case for selected property markets. Gross rental yields were approximately 5.3% in Malaysia, 6.5% in Thailand, 7.9% in Turkey and 8.2% in Indonesia, highlighting the income potential available across different markets. Gold also remains a defensive asset, trading around US$4,315 per ounce in mid-September, roughly 18% higher than a year earlier. OutlookAsia Pacific’s resilience is increasingly visible in both economic and property-market data. For investors, the focus remains on maintaining liquidity, preserving stability through diversification and selecting property with strong fundamentals. Southeast Asia and Turkey continue to stand out for their combination of growth, rental income and long-term investment potential. The contents of this article were contributed by Hamid R. Azarmi, Head of Business Development.Download to see insights from other country marketsDownload

Karachi Market Holds Firm Amid High Interest RatesKarachi’s property market is demonstrating resilience amid improving macroeconomic stability, with activity increasingly driven by genuine, value-oriented buyers rather than speculative leverage.The State Bank of Pakistan’s 11.50% policy rate has helped moderate speculative activity, while premium residential values remain relatively firm. The market benchmark for 350–400 sq yd premium homes stands at approximately US$320,000, supporting the view that selected high-quality assets continue to serve as a store of value. At the same time, Karachi’s citywide gross residential yield is around 6.67%, well below prevailing interest rates. While this creates a negative yield spread, the report views current conditions as a potentially attractive entry point for investors focused on long-term capital appreciation as the monetary cycle eventually adjusts. Location and Property Type Drive PerformanceKarachi remains a highly segmented market. Premium detached homes continue to command a significant valuation advantage over vertical apartments, while rental yields vary considerably across different districts and property types. The market is also being shaped by replacement-cost inflation, tax changes and infrastructure investment. Transport improvements are strengthening accessibility in selected suburban areas, while delays in other infrastructure corridors continue to influence commercial and residential performance.The valuation table on page 2 highlights the importance of micro-market selection, with areas such as DHA, Clifton, Gulshan-e-Jauhar, Scheme 33 and Bahria Town Karachi offering different combinations of pricing, rental yields and demand drivers. OutlookKarachi’s near-term market is likely to remain selective but resilient. High financing costs may continue to limit speculative demand, while well-located properties supported by genuine occupancy, infrastructure and long-term capital preservation should remain better positioned for future appreciation.The contents of this article were contributed by Junaid Hamid, Head of IQI Karachi Pakistan.Download to see insights from other country marketsDownload

Luxury Property Defies the Broader SlowdownMalaysia’s property market is moving through a clear cooling phase. In the first half of 2026, total transaction volume across all property sectors declined 4.5%. However, properties priced above RM1 million were the only segment to record positive transaction growth, rising 2.2%. The divergence highlights the resilience of the premium segment. High-net-worth buyers are increasingly focusing on tangible, high-quality assets in prime locations, particularly during periods of inflation and wider economic uncertainty. According to the report, luxury real estate is being viewed as a wealth-preservation asset and a potential hedge against macroeconomic volatility. International demand is also contributing to the segment’s strength. Malaysia remains attractive to regional and overseas investors seeking stable yields and favourable exchange-rate conditions, making global visibility and strong international networks increasingly important for high-value property transactions.Scarcity Supports Genuine Premium AssetsWhile the wider market continues to face unsold inventory, truly premium properties remain comparatively scarce. The report defines genuine luxury through irreplaceable locations, ultra-low density and strong strata management, rather than price alone. The current slowdown is also giving well-capitalised buyers greater room to negotiate for selected assets, with the expectation that prime properties may be well positioned when the next market upcycle arrives. OutlookMalaysia’s property market is likely to remain highly segmented. While the 4.5% contraction calls for caution in the mass market, the 2.2% growth in the luxury tier points to more selective opportunities. Investors and property professionals may benefit from focusing on high-quality assets, data-driven decisions and platforms that connect local properties with global wealth. The contents of this article were contributed by Muhazrol Muhammad, GVP, Head of Bumiputera Segment.Download to see insights from other country marketsDownload