Newsletter

Written by Taco Heidinga, IQI Global Strategic Advisor As 2025 draws to a close, property investors are looking ahead to 2026 with cautious optimism. Shifting interest rate cycles, evolving demand patterns and structural supply constraints are shaping where capital is likely to flow next. Interest Rates, Affordability & Buyer Activity Several major economies, including the UK, are expected to see continued interest rate cuts into 2026. This should improve mortgage affordability and support a recovery in buyer activity, particularly among first-time buyers and home upgraders. Historically, lower borrowing costs have translated into higher transaction volumes and steadier price growth. Shift Toward Secondary & Emerging Cities Investor focus is increasingly moving beyond prime capital cities toward secondary and emerging urban centres. More affordable pricing, infrastructure upgrades and improved liveability are driving demand in commuter towns, satellite cities and lifestyle markets. Remote and hybrid work continues to reshape housing demand beyond traditional city cores. Sustainability & Smart Buildings Energy-efficient and green-certified buildings are gaining premium value. Buyers and tenants are prioritising lower operating costs, while governments are tightening environmental standards. Sustainability is rapidly shifting from a value-add to a baseline requirement for long-term asset performance. Inflation Hedge & Supply Constraints Real estate remains widely viewed as a hedge against inflation. At the same time, high construction costs and tighter credit conditions are restricting new supply in many markets, supporting price stability where demand remains resilient. Discover more here:Download Now!

Written by Muhazrol Muhamad, GVP, Head of Bumiputra Segment While market discussions often focus on foreign buyers or the gig economy, data points to a far larger and more stable demand base: Malaysia’s 1.3 million civil servants. From December 2024, civil servants received a salary increase of over 13 percent, the largest in public service history. This has significantly boosted purchasing power and housing loan eligibility. Despite this, only about 774,000 civil servants currently have active loans under the Public Sector Home Financing Board (LPPSA), leaving more than 500,000 potential buyers still inactive. If just 10 percent of this group enters the market in 2026 with an average purchase of RM350,000, it would inject over RM17 billion into the property market, enough to meaningfully reduce residential overhang in key states. The salary hike also expands financing capacity. An officer previously earning RM3,500 could typically qualify for around RM380,000 in financing. After the increase, income of roughly RM4,000 raises eligibility to over RM430,000, shifting buyers from apartments into landed terraced homes, which remain the preferred segment. For existing homeowners, the Second LPPSA Financing offers a further advantage. Civil servants enjoy a fixed 4.0 percent interest rate for both first and second loans, providing stability at a time when private-sector borrowers face floating rates. Heading into 2026, civil servants are positioned to be one of the most important drivers of housing demand, supported by higher incomes, fixed-rate financing, and a large pool of buyers yet to enter the market. Discover more here:Download Now!

Malaysia has emerged as Southeast Asia’s leading data centre hub, attracting US$34 billion in investment over the past four years. The sector is projected to more than triple from US$4 billion in 2024 to US$13.6 billion by 2030, driven by major AI hyperscalers including Google, AWS, Microsoft, Oracle and Nvidia via YTL Power. This rapid expansion has sparked a RM126 billion construction supercycle, with contractors such as Gamuda Bhd, IJM Corp Bhd and Sunway Construction Group Bhd leading core infrastructure development. Johor remains the epicentre, expected to account for 60% of national capacity by 2030. Rising demand for land and clean energy has prompted plantation groups SD Guthrie, KLK and IOI Corporation Bhd to allocate estates for green industrial parks and solar farms, supporting Malaysia’s National Energy Transition Roadmap target of 70% renewable energy by 2050. Figure 1: Drivers of Malaysia’s Data Centre Supercycle National utility Tenaga Nasional Berhad (TNB) is accelerating grid readiness, targeting 5 GW of data centre demand by 2035 and rolling out its Green Lane Pathway, which cuts connection times from 36 months to 12. Its 10 GW renewable energy commitment by 2030 further underpins the transition. Data centres could account for 70% to 90% of Malaysia’s electricity demand growth in 2025 and 2026. While this presents grid and energy security challenges, the boom is also creating new value chains and strengthening Malaysia’s regional technology position. Realising these gains will depend on timely grid upgrades to meet rising demand. Discover more here:Download Now!

Global economy is still looking for growth as it navigates through uncertain and tempestuous times. Equities, real estate and commodities remain favorable for smart and sophisticated global investors. Bonds may remain under pressure. Dollars are likely to stay weaker as FED stays dovish amid slowing down in US economy.    QE Comes Back in the MarketQE is coming. The Fed started cutting rates in Sep 2024 with the 30-yr yield below 4%. They've now cut 150 bps and the 30-yr is at 4.8%. The Fed may be done with inflation, but inflation isn’t done with the Fed. If long yields keep rising, they won’t admit a policy mistake - they’ll just bring back QE. In the end, all roads lead to easing. Wall Street is betting on another strong year in 2026, expecting double-digit stock gains despite fears around Big Tech’s massive AI spending and bubbling investor nerves over a possible AI-driven market surge. Investors are Asking the Key Question: Gold or Stocks, which have held its value better since 2000.    Growth Outlook of Various Economies in 2026.As per economist magazine vs Market expectation: Discover more here:Download Now!

Written by Lily Chong, Head of IQI Australia Australia’s housing market posted another month of solid momentum, with Cotality’s national Home Value Index rising 1.0% in November. This marks the third consecutive month where home values have climbed by one per cent or more. Although the pace has eased slightly from October’s 1.1% rise, the overall trend remains positive, signalling resilient buyer demand in the face of broader economic uncertainty. Perth Leads the Nation Perth continues to outperform all other capitals, recording an impressive 2.4% rise in dwelling values for November. Extremely low levels of stock—sitting more than 40% below the long-term average—combined with elevated buyer activity have created strong upward pressure on prices. This monthly growth alone added over $21,000 to the median dwelling value, equating to around $5,000 per week. Once again, Perth highlights the growing divergence between mid-sized capitals and Australia’s larger, more supply-balanced markets. Mixed Results in Sydney & Melbourne Sydney and Melbourne delivered more modest results, rising 0.5% and 0.3% respectively. These softer gains reflect increased affordability constraints, with prices already sitting at historically high levels, limiting further upward movement. Sydney’s supply levels are only slightly below its five-year average, meaning the city does not face the same supply shortages driving stronger growth elsewhere. Importantly, Sydney’s monthly growth rate appears to have peaked back in August at 0.9%, suggesting the city may be entering a more stable phase. Affordability Pressures Continue to Build Housing affordability remains a key challenge nationally. Cotality’s latest metrics show the median dwelling value is now 8.2 times higher than the annual household income—its most stretched level on record. At the same time, mortgage serviceability has climbed to 45% of household income, making it increasingly difficult for new buyers to secure finance. Auction clearance rates have also softened since mid-September, drifting below the decade average by mid-November, particularly in Sydney and Melbourne where clearance rates have held in the low 60% range. Market Outlook Looking ahead, the combination of persistent inflation and expectations that interest rates will remain elevated for longer is likely to influence buyer sentiment. With affordability challenges deepening, fewer buyers may be able to borrow at the levels required to keep pace with rising prices. Recent trends also indicate that lower-priced segments of the market are seeing the strongest value growth across most capitals, as buyers adjust to tighter lending conditions. Melbourne is the key exception, where the middle of the market is currently experiencing the fastest uplift. For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re considering selling, buying, or investing, now is the time to explore your options. Contact our team at sales@iqiwa.com.au to discuss your property goals today. Source: Cotality Research, December 2025 Discover more here:Download Now!

Looking ahead to 2026, the global outlook is broadly positive, with markets entering a more stable and confident phase after a period of adjustment.Improving financial conditions, gradual interest rate easing, and steady economic activity are supporting renewed momentum across real estate and investment sectors. While growth will differ by market, strong demand fundamentals, ongoing urbanisation, infrastructure development, and sustainability-driven investment themes are creating solid opportunities. This could make 2026 a constructive year for steady progress and long-term value creation.Discover more here:Download Now!

Written by Dave Platter, Global PR DirectorJapan’s property market has undergone a remarkable transformation over the past decade, shifting from years of stagnation to becoming one of Asia’s most appealing investment destinations. As highlighted by Juwai IQI Group CEO Kashif Ansari, Japan’s rebound is supported by a stable economy, low interest rates, major urban redevelopment and a booming tourism sector. Residential land prices in key cities such as Tokyo and Osaka have been rising steadily since 2015. Foreign demand has also surged, especially from Greater China, Singapore and Western buyers, who are purchasing second homes, rental units and hospitality assets. In 2024 alone, foreign investors poured nearly ¥740 billion (USD 5 billion) into Japanese residential real estate, driven by affordability, stability and stronger yields.Investor appetite is expected to strengthen into 2026. Japan remains uniquely attractive due tofinancing costs that stay far below global norms, even with possible future rate adjustments. The Chinese yuan’s more than 10 percent appreciation against the yen has further boosted purchasing power, while Japanese residential assets offer rental yields around 4 percent, significantly higher than Singapore or Hong Kong.Despite rising demand, new Tokyo condos remain roughly 80 percent the cost of similar units in China’s tier-one cities, reinforcing Japan’s value proposition. Although political discussions on foreign ownership are emerging, any restrictions are expected to remain limited, as Japan continues to rely on foreign investment to revitalise regional markets and support tourism. With strong domestic demand and high-quality urban living, Japan’s property market is positioned for continued momentum heading into 2026.Discover more here:Download Now!

Written by Taco Heidinga, Global Real Estate Strategist Juwai IQI & Founder, Homes in Asia As global citizens, we no longer chase only financial returns, we seek lifestyle, security, and global optionality. The world is shifting, and with it, the definition of a “safe” or “smart” investment. In 2025, three powerful trends define where capital is moving next:1. Southeast Asia: The Growth Engine of the Next Decade Why it matters: ASEAN economies are growing faster than any other region, with GDP expansion of 4.5–5.5% projected annually. Top picks: Bali, Indonesia – Tourism recovery + limited land supply = double-digit ROI on lifestyle property. New PMA ownership structures make it investor-friendly.  Malaysia – Political stability, foreign-ownership rights, and the Malaysia My Second Home (MM2H) program make Kuala Lumpur and Penang attractive for long-term investors.  Thailand – Phuket and Bangkok continue to see strong rental yields (6–10%) and luxury demand from Europe and China.  2. Europe’s Lifestyle Hubs: Value Meets Stability Why it matters: While yields are lower, European real estate offers currency stability and lifestyle diversification. Top picks: Greece – Still undervalued relative to Western Europe. The Golden Visa returns in new form, making Athens and Crete key hotspots.  Portugal & Spain – Ideal for remote-work investors and digital nomads. Short-term rental demand remains high post-visa reforms.  3. The Middle East: The Global Wealth Magnet Why it matters: The Gulf is transforming into a global capital hub, attracting entrepreneurs, investors, and family offices. Top picks: Dubai – Tax-free, safe, and cosmopolitan. Real estate remains a hedge against inflation and global volatility.  Riyadh & NEOM, Saudi Arabia – Once closed, now wide open. Massive infrastructure projects and reform are redefining the region’s investment horizon.  For more countries updates:Download Now!