Newsletter

Written by Dustin Trung Nguyen, Head of IQI VietnamVIETNAM REAL ESTATE MARKET OVERVIEWResidential MarketHo Chi Minh City (HCMC) has banned apartment owners from leasing their properties for short durations as part of efforts to curb unauthorized Airbnb-like services.Only licensed businesses offering tourism services will now be allowed to lease properties for short-term stays, although the authorities have not clearly defined what constitutes a "short" duration.With the rapid increase in apartment towers across Vietnam’s largest city, many owners have turned to short-term rentals, using platforms like Airbnb and social media to connect with customers. However, most of these rental incomes remain untaxed.The popularity of Airbnb-style rentals has led to conflicts between short-term tenants and long-term residents, who often complain about noise disturbances late at night and cleanliness issues.Rising Property Prices and Affordability ChallengesSoaring property prices have left many young people unable to rent or buy homes.According to property analyst Le Quoc Kien, young people whose parents own homes in Hanoi and HCMC often have no choice but to live with their families to save money. With average salaries ranging from VND 10-15 million, homeownership has become a distant dream.A recent Global Property Guide report ranked Hanoi as the 11th most expensive city in Asia for renting.The average rent for a two-bedroom unit in Hanoi has reached US$715, surpassing rental rates in Kuala Lumpur, Jakarta, and Mumbai.A Vietnam Association of Realtors (VARS) bulletin highlights that house prices continue to outpace income growth, making homeownership increasingly unaffordable.VARS estimates that to buy an average apartment in Hanoi, a household would need to earn VND 45-210 million per month, equivalent to 2.3 to 10 times the actual incomes of most people.Nguyen Van Dinh, chairman of VARS, attributes rising prices to a supply shortage, as developers continue to cater mainly to high-income buyers and speculators, leaving low- and middle-income buyers with limited options.A report by the Ministry of Construction stated that apartment prices in HCMC increased by 20-30% in 2024.Affordable housing, which was once priced under VND 30 million per square meter, now starts at VND 45 million.A small apartment in Thu Duc City is now priced at nearly VND 2.5 billion.Commercial MarketHanoi's Shophouses Struggle Amid E-Commerce BoomMany shophouses in downtown Hanoi have been left vacant as shop owners struggle to keep their businesses afloat due to the rise of e-commerce.Thu Phuong, a former shop owner in Hanoi, recently vacated her 70-square-meter fashion store in Cau Giay District, after closing two other outlets earlier this year.While revenues from her three stores used to be sufficient to cover rent, declining sales forced her to end her lease contracts. She is now shifting her business online and looking for a smaller store inside alleys to reduce costs.Declining Demand for Physical Retail Spaces|Hanoi’s once-bustling commercial streets are seeing an increasing number of vacant outlets, as landlords struggle to find tenants:Kim Ma Street, known for its fashion stores and restaurants, now has over 40 closed storefronts.Nguyen Thai Hoc Street is experiencing similar vacancy trends.The Changing Landscape of Retail InvestmentsDuc Huy, a property broker with five years of experience, noted that the number of available shophouses has risen by 15-20% compared to last year.A five-floor house on Kim Ma has remained vacant since August, despite rent prices being lowered by 10% compared to two years ago, now at VND 50 million (US$1,960) per month.Shifting Consumer Preferences & Market AdjustmentsIn previous years, landlords could demand high rents, and tenants were willing to pay. However, that is no longer the case.Nguyen Chi Thanh, vice chairman of the Vietnam Association of Realtors, stated that shophouses face major challenges, as consumers increasingly prefer shopping in malls or online.Many businesses are redirecting investments away from physical locations and focusing on online marketing, which attracts more customers with lower overhead costs.Some analysts also highlight that Hanoi’s shophouses often lack sufficient parking spaces, making them less convenient for customers compared to malls.Declining Profitability of Shophouse RentalsDinh Minh Tuan, business director at listing platform Batdongsan, observed that the profitability of shophouse rentals has been declining due to shifting consumer behavior and increasing online sales competition.FOR MORE UPDATE NEWSLATTER, CLICK HERE!

By Dave Platter, Global PR DirectorIQI has compiled new data on access to affordable housing, revealing that Malaysia is a leader in ASEAN.“With a population of 34 million and a per capita GDP of RM51,001, Malaysia has limited resources to allocate to affordable housing,” said Kashif Ansari, Co-Founder and Group CEO of IQI.“Yet, it still allocates a significant amount. The 2024 budget alone dedicated RM2,850 million to this issue. Only three other ASEAN nations spent more, while three spent essentially nothing.”Mr. Ansari explained that this level of spending is having a real impact. Malaysia is on track to achieve its 12th Malaysia Plan target of building 500,000 affordable homes by 2026. As of September 2024, more than 443,259 units had already been completed.“In contrast to Malaysia,” he said, “some ASEAN nations have struggled to make progress on affordable housing. The Philippines set a target of constructing 1 million homes per year. However, the program has faced challenges due to insufficient funding, forcing the Philippine government to reduce its target by 2 million homes.”“In Cambodia, the government has admirable goals for affordable housing. However, high land and construction costs have made it difficult to attract private-sector investment.”“I can’t help concluding that Malaysia’s scalable and sustainable approach ensures steady progress on housing without overburdening government finances.”click for more info!

By Dante Azarmi, Head of Business DevelopmentAs global awareness of environmental issues increases, the real estate sector is undergoing a transformative shift toward sustainability. Investors are increasingly recognizing that eco-friendly properties not only benefit the planet but also offer substantial financial rewards. Here’s why green real estate is emerging as the future of profitable investing across global markets.Lower Operating CostsOne of the most compelling advantages of green buildings is their ability to reduce operating expenses. By incorporating energy-efficient systems, water-saving fixtures, and sustainable materials, these properties consume less energy and resources. This efficiency translates to significant cost savings over time, enhancing a property’s net operating income. In regions like Europe, Asia, and North America, governments are promoting energy-efficient developments through incentives and tax benefits, making sustainable buildings even more attractive.Increased Property ValueThe demand for sustainable properties is rising among tenants and buyers who prioritize environmental responsibility. This heightened interest often leads to higher occupancy rates and rental premiums. Consequently, green buildings tend to appreciate faster than conventional properties, offering investors robust returns. Cities such as London, Singapore, and Los Angeles are witnessing a surge in demand for eco-friendly residential and commercial spaces, driving higher valuations.Government Incentives and Global PoliciesMany governments worldwide are introducing incentives to promote sustainable real estate investments. These may include tax credits, grants, or subsidies aimed at offsetting the initial costs of green construction or retrofitting. For instance, the European Union’s Green Deal provides financial incentives for energy-efficient buildings, while countries such as Australia, Canada, and the UAE offer rebates for eco-friendly developments.Regulatory Compliance and Future-ProofingAs environmental regulations tighten worldwide, properties that already meet or exceed sustainability standards are better positioned to avoid costly retrofits or fines. Countries such as Germany, Japan, and the UK have introduced aggressive carbon-neutral targets for real estate. Investing in green properties ensures compliance with evolving regulations and safeguards long-term asset value in an increasingly eco-conscious world.Enhanced Marketability and Tenant DemandSustainable buildings often provide healthier living and working environments, with improved air quality and natural lighting. These features contribute to higher tenant satisfaction and retention rates, reducing vacancy periods and turnover costs. In global financial hubs such as New York, Dubai, and Hong Kong, major corporations are prioritizing eco-certified office spaces, further driving demand for sustainable real estate.Positive Environmental and Social ImpactBeyond financial gains, green real estate contributes to global sustainability efforts by reducing carbon footprints and conserving natural resources. This alignment with environmental goals enhances a property’s reputation and appeals to socially conscious investors, businesses, and tenants. Sustainable investments are becoming an integral part of ESG (Environmental, Social, and Governance) strategies, influencing institutional investors' decision-making worldwide.ConclusionThe convergence of economic benefits and environmental responsibility makes green real estate a compelling investment choice across international markets. From North America to Europe, Asia, and the Middle East, governments, investors, and businesses are driving the shift toward sustainability. By embracing green building practices, investors not only contribute to a healthier planet but also position themselves to reap substantial financial rewards in an evolving real estate landscape.click for more info!

By Muhazrol Muhamad, GVP, Head of Bumiputra SegmentMalaysia’s property market has just shattered records, delivering its strongest performance in the past decade, according to the latest Property Market 2024 Snapshots by NAPIC. This isn’t just growth—it’s a full-blown boom, solidifying Malaysia’s reputation as a real estate powerhouse in Southeast Asia.Breaking Records: Transaction Volume & Value Skyrocket2024 was a landmark year for Malaysia’s property sector:Transaction volume surged to an all-time high of 420,545, marking a 5.4% increase from 2023.Total transaction value skyrocketed to RM232.3 billion, reflecting a remarkable 18.0% year-on-year growth.This isn’t just a rebound—it’s a clear signal that Malaysia’s property market is firing on all cylinders.Residential Sector: The Heartbeat of the MarketThe residential sector remains the backbone of Malaysia’s property market, contributing 62.0% of total transactions.260,516 residential transactions were recorded, with a total value of RM106.92 billion.What’s driving this demand? A perfect storm of factors:Government incentives – Affordable housing schemes and stamp duty exemptions are making homeownership more accessible than ever.Urban migration – Cities like Selangor, Johor, and Kuala Lumpur are buzzing with activity as more people flock to urban centers for jobs and opportunities.Stable financing – Low interest rates and flexible loan packages are encouraging both first-time buyers and seasoned investors to enter the market.Commercial & Industrial Sectors: Riding the Wave of GrowthThe commercial property market isn’t just keeping up—it’s thriving:45,985 transactions valued at RM58.06 billionThe sector claimed 25.0% of the total transaction valueDemand for office spaces and retail units is rising, fueled by Malaysia’s expanding business ecosystemMeanwhile, the industrial sector is quietly stealing the show:8,783 transactions worth RM27.86 billion, making up 12.0% of the total market valueAs Malaysia cements its position as a regional logistics hub, industrial properties—especially logistics and warehousing—are becoming a goldmine for investorsRegional Powerhouses: Who’s Leading the Charge?Some states are clearly leading the property boom:Selangor – The undisputed champion, with 77,713 transactions. It’s not just a property market—it’s a property empire.Johor – A close second with 66,894 transactions, thanks to booming industrial developments and its strategic location near Singapore.Perak – A dark horse with 46,538 transactions, showing steady growth in both residential and commercial segments.Market Value BreakdownCentral Region (Kuala Lumpur & Selangor) – RM103.27 billion, accounting for 44.5% of the total market value.Southern Region (Johor, Melaka, Negeri Sembilan) – RM63.99 billion (27.5%).Johor is emerging as a major investment hotspot, attracting both local and international buyers.What’s Next? The Future Looks BrightThe momentum isn’t slowing down. With major infrastructure projects nearing completion, property demand is expected to skyrocket:East Coast Rail Link (ECRL)West Coast Expressway (WCE)2025 OutlookAnalysts predict another record-breaking year, driven by:Economic stabilityProactive government policiesMalaysia’s growing appeal as a regional investment hubFor investors, developers, and homebuyers, the message is clear: Malaysia’s property market is where the action is. Whether you’re looking to buy your dream home, expand your portfolio, or tap into the next big opportunity, the time to act is now.click for more info!

Written by Irhamy Ahmad, Founder and Managing Director of Irhamy Valuers International Malaysia’s power sector has undergone significant transformation, shifting from a reliance on fossil fuels to a more diversified and sustainable energy mix. Concerns over environmental sustainability, energy security, and efficiency have driven efforts to modernize and repower existing power plants while prioritizing cleaner energy sources.For decades, coal-fired power plants played a crucial role in Malaysia’s electricity supply, with major facilities like the Sultan Azlan Shah Power Station (4,100 MW) in Perak and the Tanjung Bin Power Station (2,244 MW) in Johor contributing significantly to national generation. However, Malaysia has pledged to halt new coal plant construction and gradually phase out existing plants, marking a crucial step toward reducing carbon emissions and achieving a net-zero energy transition. For example, the Sejingkat Power Plant in Sarawak is set to cease operations by 2026.The Role of Hydropower in Malaysia’s Energy TransitionHydropower remains a key pillar of Malaysia’s renewable energy strategy, particularly in Sarawak. The Bakun (2,400 MW) and Murum (944 MW) dams provide a substantial share of the region’s electricity.Upcoming hydroelectric projects reflect continued investment in sustainable energy, including:Nenggiri Hydroelectric Project (300 MW) – KelantanBaleh Hydroelectric Project (1,285 MW) – SarawakThe Expansion of Cleaner Natural Gas TechnologiesIn addition to hydropower, Malaysia is expanding its Combined Cycle Gas Turbine (CCGT) technology to improve efficiency and reduce emissions. Recent and upcoming CCGT plants include:Edra Melaka (2,242 MW, 2022)Pulau Indah (1,200 MW, 2024)Pulau Bunting Power Plant (1,600 MW, upcoming)Miri Power Plant (500 MW, upcoming)Kapar Combined Cycle Power Plant (2,100 MW, 2031)These projects highlight Malaysia’s long-term commitment to a cleaner energy transition.Instead of building new fossil-fuel-based plants, Malaysia is prioritizing:Rebuilding, upgrading, and repowering existing power stations to improveefficiency and reduce emissions.Repowering projects, such as the Paka Repowering Project inTerengganu, where the Sultan Ismail Power Station (decommissioned in2019) is being repowered with advanced technology. Set for completion in2030, this project aims to increase output while minimizing environmentalimpact.Recognition & Future OutlookMalaysia’s energy transition efforts have earned regional recognition,ranking second in Southeast Asia on the Energy Transition Index in 2024.Modernization and Repowering of Existing Power PlantsMeanwhile, the decommissioning of older plants like the Sultan IsmailPower Station (1988) and the mothballed Lumut GB3 (2002) reflects effortsto modernize the energy sector.As older fossil-fuel plants are retired and new, cleaner facilities comeonline, Malaysia is advancing toward agreener, more resilient power sector. Thefocus on repowering, modernizing, andintegrating renewable enknaergy sourceswill be pivotal in securing a sustainableenergy future.click for more info!

By Shaen Saeed, IQI Chief Economist“You can’t fathom the modern world without putting chips at the center of the story. Advanced chipmaking will return to America in 2025, more than a decade after the country lost its edge in semiconductor manufacturing to TSMC. TSMC is making a huge investment of more than $100 billion in Arizona… The American government hopes that chipmakers will produce almost a fifth of all leading-edge chips domestically by 2030.”The competition is intensifying. China and the USA are vying for the top position, and semiconductors play a crucial role in shaping the global economy.Major Players in the Semiconductor Market:USAChinaGermanySouth KoreaMalaysiaNetherlandsNew Entrants in the Semiconductor Market:IndiaUAEJapanVietnamGlobal Re Balancing - Dollar At A Crossroad. History RepeatsGlobal Re Balancing - Dollar At A Crossroad. History RepeatsA graph showing the value of the stock market. In my view, we areon the brink of a global rebalancing.Historically, when the dollar enters a structural downtrend, hardassets tend to significantly outperform U.S. equities.What is the usual outcome of austerity combined with lowerrates? A weaker dollarWhile fiscal consolidation is essential for restoring investorconfidence in U.S. Treasuries and reducing long-term interestrates, one of the most immediate and effective ways to lowergovernment spending is for the Fed to cut interest rates itself.This issue likely indicates that the U.S. dollar is at a criticaljuncture in history, and the significance of the chart cannot beoverstated.USA vs. Europe – Reordering Global Financial MarketsAccording to the Financial Times, fund managers have stated thatTrump’s Make America Great Again agenda has, instead, triggereda Make Europe Great Again trade, which is reshaping globalfinancial markets.click for more info!

Written by Taco Heidinga, IQI Global Strategic AdvisorThe world’s wealthiest investors are focusing on prime international real estate destinations such as Bali, Dubai, Phuket, and Kuala Lumpur. These hotspots offer strong returns, lifestyle appeal, and long-term value appreciation.Here’s why you should consider investing alongside them.Bali: Tourism-Driven GrowthWhy Invest? High occupancy rates, growing digital nomad demand, and affordable property prices.Who’s Investing? Entrepreneurs and high-net-worth individuals.Best Investments: Villas in Canggu, beachfront properties in Uluwatu.Dubai: The Global Property HubWhy Invest? No income tax, high rental yields, and strong capital appreciation.Who’s Investing? Middle Eastern and Western investors.Best Investments: Apartments in Dubai Marina, developments in Downtown Dubai.Phuket: Luxury Island RetreatWhy Invest? High rental demand, low cost of living, and strong tourism growth.Who’s Investing? Asian and European buyers.Best Investments: Beachfront villas in Patong, luxury condos in Kamala.Kuala Lumpur: Emerging Metropolitan HotspotWhy Invest? Affordable luxury, high rental yields, and strong expat demand.Who’s Investing? Business professionals and expatriates.Best Investments: High-rise condos in KLCC, serviced apartments in Bukit Bintang.Why Invest Now?Appreciation Potential: Rising demand is driving property values higher.Passive Income: High tourism rates ensure strong rental yields.Portfolio Diversification: Global real estate investments offer protection against economic downturns.Lifestyle Perks: Enjoy luxury living while your investment grows.The wealthy are securing prime properties before prices soar. Follow their lead and be part of the next global realestate boom!click for more info!

Written by Lily Chong, Head of IQI AustraliaCoreLogic’s national Home Value Index rose by 0.3% in February, signaling an end to a brief three-month downturn that had lowered home values by 0.4%. While the increase was modest, it was widespread, with most regions except Darwin (-0.1%) and Regional Victoria (flat) experiencing growth.Key trends include:Melbourne and Hobart lead gains: Both cities saw a 0.4% rise, reversing Melbourne’s ten-month streak of declining values.Mid-sized capitals slowing: Brisbane, Perth, and Adelaide, previously the strongest markets, recorded slower monthly growth (0.2%-0.3%). While Adelaide (1.2%) and Brisbane (0.9%) still lead quarterly gains, Perth’s growth has decelerated to 0.3%.Premium market rebound: Sydney and Melbourne’s upper-tier housing markets, which faced sharp declines, are now driving growth, consistent with past trends of high-value markets responding first to rate cuts.CoreLogic’s research director, Tim Lawless, attributes the market improvement to rising buyer confidence, influenced by expectations of lower interest rates, rather than increased borrowing capacity. Auction clearance rates have also returned to long-term averages, further indicating improved market sentiment.In February, national rents increased by 0.6%, marking the strongest monthly rise since May last year. However, this remains below the 0.9% increase recorded in February 2023 and the 1.2% surge in February 2021 during the rental boom.Key trends:Seasonal influence: Rental growth typically accelerates in the first quarter due to seasonal patterns, rather than underlying market shifts.Annual growth slowing: Over the past 12 months, rents have risen by 4.1%, the slowest annual increase since early 2021. Despite this, the growth rate remains double the pre-pandemic average of 2.0%.Declining growth in key cities: Darwin saw the sharpest slowdown, with annual rent growth dropping from a peak of 25% during the pandemic to just 1.4%. Sydney, Melbourne, and Brisbane unit rents have also slowed significantly, with annual growth now at 2.7%, 3.2%, and 3.3%, respectively—down from peaks above 15%.Impact of migration and household changes: The easing of net overseas migration and a shift towards larger households have reduced rental demand, especially in major cities.Rental growth in some markets: Hobart, the ACT, and Darwin’s unit market have experienced slight rental growth improvements compared to last year, albeit from previously weak conditions.CoreLogic’s Tim Lawless attributes the overall slowdown to normalizing migration trends and changing household sizes, which have alleviated some pressure on the rental market.FOR MORE UPDATE NEWSLATTER, CLICK HERE!