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GTA Home Sales Up 40% in November 2024

GTA Home Sales Up 40% in November 2024

In November 2024, Canada’s real estate market demonstrated strong growth, driven by lower borrowing costs and robust population increases. National home sales rose 7.7% month-over-month in October, with a 30% increase compared to the previous year. Theaverage home price reached $696,166, marking a 4% monthly and 6% annual rise, although the MLS Benchmark price showed slight declines.Regionally, the Greater Toronto Area experienced consistent sales growth and a 0.8% monthly price increase to $1.09 million. Alberta set new price records, with Calgary and Edmonton showing significant annual growth of 13.8% and 11%, respectively. Interest rate cuts by the Bank of Canada fueled buyer activity, while population growth of 3% year-over year continued to drive demand. The outlook remains positive, although potential supply shortages may place further pressure on prices.TorontoVancouver Quebec In November 2024, GTA REALTORS® reported 5,875 home sales through TRREB’s MLS® System, marking a 40.1% increase from the 4,194 sales recorded in November 2023. New listings entered into the MLS® System totaled 11,592, reflecting a 6.6% year-over-year increase. Seasonally adjusted figures showed that November sales increased compared to October.The MLS® Home Price Index (HPI) Composite Benchmark declined by 1.2% year-over-year in November 2024, representing a smaller annual decrease than in previous months. Meanwhile, the average selling price rose by 2.6% from November 2023, reaching $1,106,050. The stronger growth in the average price, compared to the HPI Composite Benchmark, is attributed to a higher proportion of detached home sales this year. On a seasonally adjusted basis, the average selling price experienced a slight decline compared to October.VancouverIn November 2024, Metro Vancouver's real estate market experienced a 28% year-over-year increase in home sales, continuing the strong demand observed in October. A total of 2,181 residential sales were recorded, though this figure remained 12.8% below the 10-year seasonal average. New listings rose 10.6% year-over-year to 3,725, slightly exceeding the seasonal average, while active listings reached 13,245, reflecting a 21.2% annual increase.The sales-to-active listings ratio stood at 17.1%, with detached homes at 12.7%, attached homes at 23.1%, and apartments at 18.7%. This balance kept prices stable; however, continued demand could exert upward pressure if listings fail to keep pace.Benchmark prices were $1,172,100 for all homes (-0.9% YoY, stable MoM), $1,997,400 for detached homes (+1% YoY), $752,800 for apartments (-1.2% YoY), and $1,117,600 for townhouses (+1.8% YoY). Townhouses demonstrated the strongest sales growth, rising 42.7% year-over-year. Explore the latest market insights and discover what’s driving real estate trends in November 2024—read the article now!Data extracted in January 2025Read more

14 January

Weakest Housing Growth Since January 2023: CoreLogic

Weakest Housing Growth Since January 2023: CoreLogic

CoreLogic's National Home Value Index (HVI) inched up by just 0.1% in November, marking the weakest nationwide result since January 2023. Although this represents 22 consecutive months of growth, the current cycle may be nearing its end."The slowdown is becoming evident in Melbourne and Sydney," said Tim Lawless, CoreLogic’s Research Director. "Even the mid-sized capitals, which have driven recent growth, are starting to lose momentum."In Melbourne, housing values have declined in ten of the last twelve months, with a monthly drop of -0.4% in November, bringing the annual decrease to -2.3%. In Sydney, housing values plateaued in September after peaking in August, then fell by -0.2% in both October and November.Quarterly figures reveal that four of the eight capitals are now experiencing declines in values, with Melbourne leading the trend (-1.0%), followed by Darwin (-0.7%), Sydney (-0.5%), and Canberra (-0.3%)."The mid-sized capitals and many regional markets continue to provide some support to the national index, but it’s clear their momentum is also waning," added Mr. Lawless.Perth remains the nation’s frontrunner for capital growth, with values rising 1.1% in November and 3.0% over the past three months. However, this marks its slowest quarterly growth since April 2023 and reflects less than half the rate of the June quarter's 6.7% increase.CoreLogic's latest data shows that the rental market is also experiencing a slowdown. The national rental index edged up by just 0.2% in November, with rents rising 5.3% over the past year—the slowest annual increase since April 2021. A year ago, rental growth stood at 8.1% annually and had exceeded 9% over the prior two years.“At 5.3% annual growth, rents are still climbing at more than double the pre-pandemic decade average of 2.0%, but with such weak monthly increases, the annual trend is likely to decelerate further,” noted Mr. Lawless. “The first quarter of 2025, which is seasonally strong for the rental market, will reveal whether growth rebounds, but it appears increasingly clear that the rental boom is coming to an end.”Perth continues to lead in rental growth among the capitals, with unit rents surging by 9.7% annually, although this is a significant slowdown from the peak of 16.6% recorded in late 2023 and early 2024. Perth also leads in house rental growth, with an 8.7% increase over the past year.Despite Perth's leading position in both property value and rental growth, the broader market slowdown is evident, with weaker growth across other capitals and regions. This suggests the national property market, including both sales and rentals, is transitioning into a new phase of subdued momentum.Stay ahead of market trends—explore CoreLogic's full report for the latest insights on housing and rental growth.Data extracted in January 2025Read more

14 January

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, 2024

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, 2024

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, 2024

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

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