News roundup: Saudi Arabia’s real estate sector contributes 5.9 percent to GDP, and other news

For PropertyGuru’s real estate news roundup, real estate activities in Saudi Arabia continue to grow, contributing 5.9 percent to the Saudi GDP in the fourth quarter of 2023. In other headlines, China’s uneven recovery sees exports accelerating but imports slowing down. Finally, the vacancy rate in the once-hot industrial sector is headed higher as Australia’s economy slows down.

Saudi real estate sector contributes 5.9 percent to GDP, hits USD169.5 billion in transactions

Real estate activities in Saudi Arabia have continued to grow since the beginning of 2024, recording more than 280,000 transactions worth more than SAR636 billion (USD169.5 billion), and extending over a total area of more than two billion square meters.

According to Economy Middle East, the sector’s contribution to the Saudi GDP reached 5.9 percent in the fourth quarter of 2023.

During the last week ending 22nd June 2024, the real estate stock exchange witnessed 518 deals, with a transaction value exceeding SAR331.7 million, and a trading area of about 900,000 square meters. The highest recorded price per square meter reached about SAR15,000, while the average price was SAR371.

China’s uneven economic recovery continues as exports jump in May but imports slow

China’s exports accelerated far more than expected in May but imports slowed, official figures showed Friday, in further evidence of an uneven recovery for the world’s number two economy.

Overseas shipments surged 7.6 percent on-year in dollar terms, the General Administration of Customs said — much better than April’s 1.5 percent and also beating the 5.7 percent forecast in a Bloomberg survey of analysts. Exports have historically served as an important economic engine in China, with overseas sales performance having a direct impact on employment for thousands of companies.

HKFP reports that the latest figures represent a second consecutive month of growth, following a brief year-on-year decline of 7.5 percent in March.

Industrial vacancy spike to hit as slow economy affects key precincts in Australia

The vacancy rate in the once-hot industrial sector is headed higher as the economy slows and the sector gets back to pre-pandemic conditions, but it won’t double this year, a leading forecaster says in realcommercial.com.au.

The sector was transformed by the rapid growth of e-commerce during the pandemic, but developers are now building a series of new warehouses in major markets and many large tenants are also looking to sublease space.

While pressures are expected to rise as the economy slows, Australia remains among the most attractive markets in the world due to its relatively tight metrics.

The Property Report editors wrote this article. For more information, email: [email protected].