A CLOSER LOOK INTO THE PRIVATE HOUSING SUPPLYRecent market dynamics reveal a complex interplay between strengthening demand indicators and persistent supply concerns. While robust rental growth, population inflows, and moderating mortgage rates signal a recovery in demand, the price war in the primary market and mixed sales performance highlight ongoing supply pressures. The critical question remains: will this supply overhang outweigh the emerging demand recovery?The Housing Bureau projects 108,000 private residential units to be available in the next three to four years—a modest 10% increase from 2021's peak market levels when the home price index reached its historic high. A more meaningful assessment of market balance can be derived by analyzing the "months of supply" metric, which relates unsold units in completed projects and projects under construction to the primary transaction volume over the past 12 months.This indicator has traced a revealing pattern: from 54.4 months in December 2021, it rose significantly to 95.4 months in 2022 and peaked at 101.6 months in 2023, reflecting the downturn phase of the cycle. Recent data shows a moderation to 78.2 months as of September 2024, suggesting improving absorption dynamics. Looking ahead to 2025, assuming primary market transaction volumes normalize to 18,000 units annually (less than 10% above the projected 2024 level), the months of supply could moderate to 58.0 months by December 2025—approaching levels observed during more balanced periods, notably in 2021.While current inventory metrics indicate elevated levels of unsold units in completed projects and those under construction, forward-looking supply indicators present a contrasting picture. Most notably, the volume of potential units from disposed sites—where construction could commence immediately—has declined to 10,000 units as of September 2024, the lowest level since data collection began in 2012 and a marked decrease from 25,000 units in March 2023. This structural shift in the supply pipeline suggests potential moderation in medium term inventory growth, even as the market works through current stock levels.Meanwhile, developers' active management of their development pipelines suggests that the effective housing supply may prove more moderate than aggregate statistics indicate. Supply management strategies have emerged across multiple channels, including adjustments to construction timelines, project repurposing, and optimizing project launch schedules. SHKP's modification of its So Kwun Wat project timeline, citing design changes, exemplifies this trend. Additionally, in 2024, at least seven residential developments released a portion of their unsold units for leasing, representing an adjustment to the disposal pipeline. These strategic responses to market conditions introduce meaningful divergence between headline supply figures and realized inventory, potentially accelerating the convergence toward healthy inventory levels beyond current projections.Looking ahead, key macroeconomic headwinds that have pressured Hong Kong's residential market show signs of moderation, though geopolitical uncertainties—particularly the potential escalation of the US-China trade war—remain a primary concern. While current market conditions suggest a complex path to recovery, improving fundamentals indicate potential for market stabilization.Want to gain deeper insights into the housing market and what the future holds for you? Contact us today for personalized advice and stay ahead of the curve!Data extracted in January 2025Read more

India’s real estate sector is undergoing a transformative shift, driven by regulatory reforms and advancements in PropTech. Initiatives such as the Real Estate (Regulation & Development) Act, 2016 (RERA) and the Digital India Land Records Modernisation Program (DILRMP) are bringing much-needed transparency and accountability to the industry. These efforts are not only empowering buyers and streamlining processes but also instilling investor confidence, paving the way for PropTech’s rapid growth. With investments in this sector expected to reach $16 billion by 2030, PropTech is redefining the industry, making it smarter, more efficient, and customer-centric.India’s emergence as the sixth-largest global market for PropTech deals highlights its growing prominence in the digital real estate ecosystem. PropTech innovations are addressing critical challenges such as affordable housing, urban sustainability, and operational inefficiencies. From digital land registries to AI-driven property management tools, technology is enabling faster transactions, smarter investments, and greener developments. As India progresses towards becoming a $10 trillion economy by 2047, PropTech will play a pivotal role in shaping sustainable urban landscapes, bridging the housing gap, and redefining the future of real estate.With regulatory momentum and technological innovation driving the sector, India’s real estate market is on track to achieve unprecedented growth and modernization. Indians Now the Largest Group of Property Owners in LondonIndians have emerged as the largest group of property owners in London, encompassing diverse categories such as long-time UK residents of Indian origin, non-resident Indians (NRIs), foreign investors, students, and families migrating for education. According to a report by Barratt London, this demographic shift highlights India's growing influence in London’s real estate market. Indians now account for 7-8% of foreign buyers, willing to invest between GBP 290,000 and GBP 450,000 in one- to three-bedroom homes.The city's established infrastructure and stable market make it a preferred choice for investors seeking rental income, with 30% of purchases aimed at rental opportunities. Additionally, the UK’s appeal lies in its Global Reputation as an Educational and Financial Hub.The competitive exchange rates and perceived safety of the UK residential market further enhance its attractiveness compared to alternatives for Indians. London’s property market has historically been a symbol of stability and growth. With demand consistently outpacing supply, especially for rental properties, Indian investors see this as a safe and lucrative avenue to diversify their portfolios.For Indian investors, owning property in London isn't just about the city itself. It also serves as a gateway to Europe, providing access to a broader global market for both personal and professional pursuits.Explore the future of India’s real estate sector and seize investment opportunities in London. Start your journey today!Data extracted in January 2025read more

CONSISTENT PH ECONOMIC GROWTHThe Philippines outperformed most Asian economies in 2024, posting a solid 5.8% growth in the first three quarters.Its growth outpaced key regional economies, including Malaysia (5.2%), Indonesia (5.0%), China (4.8%), and Singapore (3.8%). The third-quarter expansion of 5.2% came on the back of robust capital formation and accelerated government spending. The National Economic and Development Authority (NEDA) noted the resilience of the economy, especially in the face of weather-related disruptions such as El Niño drought and severe typhoons, highlighting the strength of the country's recovery.It said inflation, which averaged 6.0% in 2023, eased to 3.2% by November 2024, within the government's target range. The moderation in inflation was led by a drop in rice prices, which fell from 22.5% in June to 5.1% in November, following the implementation of Executive Order (EO) 62 that lowered rice import tariffs.Opportunities in Metro Manila Condo OversupplyRecently, Colliers Philippines has shared a report that there is an oversupply of condominiums worth 34-months while this might sound concerning, we see that this could be a temporary correction in the market and a possible shift to “buyer’s market”.The Metro Manila real estate is known for it’s great capital appreciation with an average of 15% annually in which made the prices really high. While this benefited investors who have purchased properties on the earlier stage this also made it difficult for those who want to invest today.As there are more properties available in the market, we can see a transition to a market more favorable to the buyers with potential discounted price for the secondary market. During pandemic, the developers also provided discounts and more flexible payment terms than enable the market to pick up.With the exodus of Philippines Offshore Gaming Operators or POGO which occupied almost 20% of office supplies and around 10% of residential properties, we also see a potential decline in rental rates which offers an opportunity to others.Ready to invest in the Philippines' thriving economy and real estate market? Explore opportunities in Metro Manila condos today!Data extracted in January 2025read more

In Pakistan, investors often face a daunting task when deciding where to allocate their resources. While banking deposits and other investment avenues are available, real estate stands out as a superior option. This article examines the reasons why real estate investment outperforms banking deposits and other investment options in Pakistan.Higher Returns on InvestmentReal estate investments in Pakistan offer significantly higher returns compared to banking deposits. According to data from the Pakistan Bureau of Statistics, the average annual return on real estate investments in Pakistan ranges between 15% and 20%. In contrast, banking deposits typically offer interest rates ranging from 5% to 8% per annum. Long-Term AppreciationReal estate values in Pakistan have consistently appreciated over the long term, providing investors with a reliable source of wealth creation. A report by the Pakistan Real Estate Investment Trust (PREIT)Rental IncomeInvesting in real estate also generates a steady stream of rental income, which can help offset mortgage payments and other expenses. According to data from Zameen.com, a leading real estate portal in Pakistan, rental yields in major cities range from 4% to 6% perannum.Tax BenefitsReal estate investments in Pakistan come with attractive tax benefits, including exemptions on capital gains tax and deductions on mortgage interest payments. The Federal Board of Revenue (FBR) allows investors to claim a deduction of up to PKR 2 million (approximately USD 12,000) on mortgage interest payments.Diversification BenefitsReal estate offers diversification benefits, as property prices are not directly correlated with stock market fluctuations or other investment options. A report by the National Bureau of Statistics highlights that the correlation coefficient between real estate prices and stock market returns in Pakistan is approximately 0.2, indicating a low level of correlation. ConclusionIn conclusion, real estate investment is a superior option for investors in Pakistan, offering higher returns, long-term appreciation, rental income, tax benefits, and diversification opportunities. While banking deposits and other investment options are available, real estate stands out as a stable and lucrative investment avenue.Unlock the potential of real estate investment in Pakistan—visit IQI Global for expert insights and opportunities!Data extracted in January 2025Read more