Newsletter

Property Fundamentals Pass the Mid-Year TestThe first half of 2026 tested global property markets through regional security tensions, temporary repricing and changing financing conditions.What followed was a rapid recovery and a clearer investment picture. Capital is now moving towards markets supported by demographics, infrastructure and policy, rather than short-term speculation.The United Arab Emirates demonstrated strong resilience. Dubai recorded approximately AED 286 billion in property sales during H1 2026, the second-highest first-half result on record. Rental yields remain near 7%, while freehold ownership, tax-free rental income and Golden Visa eligibility continue to attract international investors.Saudi Arabia is emerging as a new foreign investment destination following the introduction of its non-Saudi property ownership law in January 2026. Riyadh offers gross yields of around 7% to 9%, while apartment rents have risen nearly 20% year-on-year. More than 780 multinational companies have also committed to establishing regional headquarters in the Kingdom. Malaysia and Japan Offer Different StrengthsMalaysia remains one of ASEAN’s most accessible growth markets. Property transactions reached RM241.9 billion in 2025, while Johor attracted a record RM110 billion in approved investment.The upcoming Rapid Transit System Link between Johor Bahru and Singapore is strengthening interest near station locations, where selected units have already appreciated 18% to 20%. Prime transit-linked properties in the Klang Valley continue to offer yields of approximately 4% to 5%.Japan provides a more defensive opportunity. The average price of a new condominium in Tokyo’s 23 wards reached ¥137.8 million, up 18.5%, while supply fell to its lowest level since 1973. High occupancy, transparent ownership rules and a weaker yen continue to support demand.OutlookThe strongest property opportunities in the second half of 2026 are likely to be found in markets where policy reform, infrastructure investment and genuine demand support long-term returns.The UAE and Saudi Arabia offer stronger yields, Malaysia provides accessible growth, while Japan remains a stable portfolio anchor.Download to see insights from other country marketsDownload

Vietnam’s Housing Market Enters a Selective ResetVietnam’s residential market entered August 2026 in a period of consolidation. Prices remain relatively firm, but transaction activity is slower as buyers become more selective and borrowing costs stay elevated.During Q2 2026, developers launched approximately 12,000 primary condominiums across the enlarged Ho Chi Minh City market and more than 4,000 units in Hanoi. However, luxury absorption remained below 30% in Ho Chi Minh City, while Hanoi’s take-up rate eased to around 20%.Inner-city primary prices reached approximately USD 5,400 to USD 9,500 per square metre. Pressure was more visible in the secondary market, where prices declined 5% to 8% in Ho Chi Minh City and by as much as 12% in parts of Hanoi.Floating mortgage rates of 13% to 16% are encouraging some owners to lower asking prices. However, the market has not experienced widespread distress, while the new land-price framework is helping maintain a floor under development costs and headline prices. Infrastructure Redirects Property DemandVietnam has approximately 234 major infrastructure projects worth VND 3.4 quadrillion underway. These investments are shifting demand from crowded central districts towards better-connected suburban and regional corridors.In the south, growth is concentrating around the Ho Chi Minh City and Dong Nai corridor, supported by Long Thanh International Airport, new ring roads, expressways and Metro Line 1.Northern demand is moving towards Hanoi’s gateway districts and neighbouring Hung Yen and Bac Ninh. Da Nang is also showing stronger primary-market activity, supported by limited prime coastal supply.OutlookVietnam’s next property cycle is expected to favour patience and careful asset selection rather than short-term speculation.With average gross rental yields near 3.85%, investment returns will depend increasingly on infrastructure-led capital appreciation. Legally clear projects with strong connectivity and genuine end-user demand should remain best positioned, particularly for buyers with sufficient holding power and a multi-year investment horizon.Download to see insights from other country marketsDownload

Bangkok Retail Market Enters a New PhaseBangkok’s retail property market is evolving as developers place greater emphasis on transit-oriented locations, experiential concepts and asset repositioning.Total retail supply reached 9.27 million square metres in Q1 2026, recording only a marginal 0.12% quarter-on-quarter decline. This reflects a relatively stable market despite wider economic uncertainty and a fresh pipeline of new space.Retail development is becoming increasingly divided between neighbourhood-focused community malls and larger shopping centres connected to mass-transit networks. Another 300,000 square metres of retail space is scheduled for completion during 2026, increasing competition among existing and upcoming projects. Occupancy Improves as Tenant Demand ShiftsBangkok’s overall retail occupancy rate rose to 89% in Q1 2026, compared with 85% a year earlier and around 84% throughout much of 2024.Demand remains strongest among luxury brands, food and beverage operators, wellness providers and experience-led tenants. Higher-performing malls are allocating more space to leisure, lifestyle services and community activities that encourage repeat visits.CBD shopping mall rents averaged 2,852 baht per square metre per month, above the northern fringe at 2,230 bahtand the eastern fringe at 2,300 baht.Community malls remained more affordable, with average CBD rents of 1,755 baht per square metre, compared with 1,200 baht in the northern fringe and 1,250 baht in the eastern fringe.OutlookCompetition may place pressure on average occupancy as consumers become more selective about where they spend their time and money.Projects combining strong transit access, distinctive experiences and a clear market identity are expected to perform best. Retail centres that respond to changing consumer habits through wellness, dining, entertainment and community-focused concepts should remain better positioned as new supply enters the Bangkok market.Download to see insights from other country marketsDownload

Vision 2030 Continues to Drive Market MomentumSaudi Arabia’s real estate market maintained strong momentum in June 2026, supported by Vision 2030, major infrastructure investment and continued population growth.Demand remains healthy across the residential, commercial, hospitality and logistics sectors, particularly in Riyadh, Jeddah and Dammam.Large government-backed developments, including NEOM, Diriyah Gate, The Red Sea and Qiddiya, continue to attract domestic and international capital. These projects are also creating long-term demand for housing, offices, hospitality assets and supporting infrastructure. Residential and Office Sectors Lead GrowthResidential property remains the market’s largest segment, accounting for an estimated 45% of investment activity. Demand is being supported by homeownership programmes, improved mortgage accessibility and rising urbanisation.Commercial property represents around 25% of investment, while hospitality accounts for 15%. Industrial assets contribute approximately 10%, with mixed-use projects making up the remaining 5%.Office leasing activity is strengthening as corporations expand and multinational companies establish regional headquarters in Riyadh. Industrial and logistics properties are also benefiting from e-commerce growth and increased supply chain investment.Among major cities, Riyadh recorded the highest investment activity index at 100, followed by Jeddah at 82 and Dammam at 65. Makkah and Madinah recorded indices of 58 and 50 respectively.OutlookSaudi Arabia’s property outlook for 2026 to 2028 remains positive.Prime residential locations are expected to record further price appreciation, while office demand should remain supported by regional headquarters expansion. Logistics and industrial developments may outperform as supply chains and e-commerce activity grow.Continued regulatory reforms and Vision 2030 projects are also expected to support higher foreign investment, transaction activity and stable rental growth over the medium term.Download to see insights from other country marketsDownload

Inflation Eases as Market Conditions ImproveThe Philippines property market entered the second half of 2026 with a gradually improving economic outlook.Inflation declined for a second consecutive month, falling from 7.2% in April to 6.4% in June. Lower fuel and transport costs supported the improvement, while monthly inflation recorded its first decline in a year at -0.3%.The Bangko Sentral ng Pilipinas raised its policy rate to 4.75%, but inflation is expected to ease further through 2028. Economic growth is also forecast to strengthen from 2.8% in Q1 2026 to 4.4% for the full year, supporting future consumption, investment and property demand. Industrial Property Offers the Strongest ProspectsMetro Manila condominiums remain a buyer’s market, creating opportunities for buyers seeking discounted properties. New condominium completions are expected to average only 3,600 units annually from 2026 to 2028, significantly below the 13,000-unit annual average recorded between 2017 and 2019.This lower supply pipeline could gradually reduce excess inventory. Developer incentives, strong overseas Filipino worker remittances and projected national price appreciation of 25% to 35% by 2031 may support long-term residential demand.Metro Manila’s office vacancy rate improved to 19%, supported by limited new supply and demand beyond the business process outsourcing sector. Retail vacancy is also expected to fall below 10% as household spending recovers.Industrial property remains the strongest segment, led by Central Luzon and the Clark corridor. Rising rents, logistics improvements, e-commerce growth and demand for energy-resilient facilities continue to strengthen investment fundamentals.OutlookIndustrial and Clark corridor assets offer the strongest risk-adjusted opportunities.Selected CBD offices, retail properties and discounted condominiums also present improving prospects. Investors should remain selective, prioritising quality assets, strong locations and longer holding periods while monitoring inflation, electricity costs and geopolitical risks.Juwai IQI Newsletter August 2026Download

Lower Oil Prices Bring Economic ReliefGlobal financial conditions are showing signs of improvement after a turbulent start to 2026. Oil prices fell by more than 20% in June, declining from US$105 to around US$73 per barrel as tensions between the United States and Iran eased and key shipping routes gradually reopened.Lower oil prices could reduce pressure on transport, food and manufacturing costs, offering some relief to households. The global economy is also expected to remain resilient, with projected growth of 2.8% in 2026 and a stronger recovery anticipated in 2027.Gold has also retreated from its January record of US$5,595 to approximately US$4,000. However, forecasts cited in the guide suggest prices could reach between US$4,900 and US$6,000 by year-end, keeping gold relevant as part of a diversified portfolio. Capital Moves Towards Asia-Pacific PropertyInvestors placed a record US$47 billion into Asia-Pacific property during the first quarter of 2026, representing a 31% year-on-year increase.The region’s appeal is supported by stronger potential returns. Savings accounts provide roughly 2.5% annually, while government bonds offer around 4%. In comparison, selected rental properties across Bali, Turkey, Thailand, Malaysia and Vietnam may generate approximately 5% to 8.5% in annual rental yields, before any capital appreciation.Southeast Asia’s projected growth of 4.3% further strengthens its appeal as one of the world’s faster-growing regions.OutlookThe improving economic environment supports a balanced financial strategy rather than concentrating money in one asset.A practical approach may include income-generating property, selected gold exposure and sufficient emergency cash. With energy costs easing and investment activity strengthening across Asia-Pacific, disciplined diversification may help investors capture growth while remaining prepared for future uncertainty.Download to see insights from other country marketsDownload

Karachi Enters a More Disciplined Market PhaseKarachi’s real estate market is moving towards a more stable and yield-driven investment environment, supported by macroeconomic improvements and major fiscal reforms.As of June 2026, the State Bank of Pakistan maintained its policy rate at 11.50%, while inflation stood at 11.70%. Foreign exchange reserves reached USD 22.04 billion, helping the Pakistani rupee stabilise at approximately PKR 278.16 per US dollar.The FY2026-27 Federal Budget also removed the Section 7E deemed income tax on undeveloped land and reduced the combined transaction withholding tax for active filers to 4.0%. For a PKR 100 million property transaction, this represents potential tax savings of PKR 4 million, lowering entry and exit costs for investors. Yields and Infrastructure Support Investor InterestKarachi’s residential market recorded an average gross rental yield of 6.67% in Q1 2026, reinforcing the city’s appeal to income-focused investors.Selected locations have delivered stronger results. Clifton’s average residential valuation reached PKR 15.6 crore, following 16% year-on-year appreciation. In DHA Phase 8, commercial properties generated estimated net yields of 11% to 13%.DHA Phase 6 also recorded an average net profit of 22% for buy, renovate and resell strategies. Meanwhile, Naya Nazimabad achieved cumulative capital appreciation of 461% between January 2016 and June 2026.Infrastructure remains another important driver, with PKR 100.19 billion allocated to 816 development schemes across Karachi.OutlookPakistan’s property market is becoming more predictable, but investors are likely to remain focused on rental income, established locations and transaction efficiency.Karachi assets offering strong yields, infrastructure access and measurable demand should be better positioned as the market moves away from speculation and towards disciplined, income-led growth.Download to see insights from other country marketsDownload

Malaysia’s Market Shifts in Favour of BuyersMalaysia’s property market entered the second half of 2026 with a clearer focus on value, affordability and financial discipline.Targeted fuel subsidies and higher living costs have reduced the appeal of speculative property purchases. Instead, the market increasingly rewards buyers who study pricing, location fundamentals and long-term affordability before making a decision.Slower house price growth has also encouraged sellers to set more realistic asking prices. This creates a stronger negotiating position for informed buyers seeking competitively priced assets.Maturing suburban corridors such as Kajang and Bangi South may offer opportunities where pricing, infrastructure and future demand are aligned. The market is not experiencing a broad collapse, but it has become more selective and buyer-friendly. Transit Access and Cash Flow Take PriorityThe rationalisation of fuel subsidies is also changing how Malaysians evaluate property locations. Buyers and tenants are placing greater importance on public transport access, rather than measuring convenience by distance alone.Transit-oriented developments are therefore becoming more important. Properties connected to rail networks may attract stronger rental demand while helping residents reduce their exposure to rising transport costs.Financial management is equally critical. Investors are being encouraged to review existing loans, improve cash flow and avoid excessive borrowing before adding another property to their portfolio.Maintaining sufficient liquidity allows investors to respond when below-market opportunities appear without placing unnecessary pressure on their monthly finances.OutlookThe second half of 2026 is likely to favour the analytical and financially prepared buyer.Properties with realistic pricing, reliable transit access and sustainable holding costs should remain better positioned. Buyers who manage debt carefully and prioritise long-term fundamentals can use the current market adjustment to build a stronger and more resilient property portfolio.Download to see insights from other country marketsDownload