Signs of Dubai real estate market’s maturity, and additional reports

For PropertyGuru’s real estate news roundup, the maturity levels of Dubai’s thriving real estate market become more apparent, with two out of every five ready-to-move-in home sales valued below AED1 million. In other headlines, an Australian developer has revealed plans for 15 substantial industrial warehouses in a key employment precinct in the north of the city of Geelong. Lastly, Cambodian real estate experts have praised the government’s decision to extend tax incentives for real estate transactions and related services.

There are signs of maturity in Dubai’s real estate market

As more information becomes available, the maturity levels of Dubai’s thriving real estate market become more apparent. PropertyNews.ae reports that according to a recent study, two out of every five ready-to-move-in home sales had values below AED1 million in the third quarter.

At 190.1 points, the ValuStrat Price Index, which measures residential capital values, increased 6.7 percent quarterly and 28.9 percent annually. The baseline of 100 points set in Q1 2021 serves as the benchmark for this valuation-based index.

Ninety-eight percent of homes in Dubai’s freehold villa communities have doubled in value since the pandemic in 2020–2021, surpassing the price peaks of a decade ago. Except for those in Palm Jumeirah, apartments, which make up more than 80 percent of Dubai’s housing stock, have not yet achieved these milestones.

Large-scale industrial warehouse plans revealed for Geelong’s north in Australia

A Geelong developer has revealed plans for 15 substantial industrial warehouses in a key employment precinct in the city’s north.

Montgomery Property is seeking planning approval for the AUD125 million development to subdivide a 26ha property at 220 Heales Rd. The land has already been subdivided into four 6ha lots at Kinetic Court, Lara. However, a leasing campaign for two lots revealed the market was keen for smaller industrial landholdings, leading the proponents back to the drawing board.

Director Dean Montgomery said the plans, which have been submitted to Geelong’s council, would see the rear two lots halved to create four 3ha lots, with the two front blocks split further to create 10. The development would include 15 industrial warehouses overall.

“We’ve had two of the four blocks on the market for quite some time and we just haven’t had anyone showing interest in lot sizes that big,” Mr Montgomery said in realcommercial.com.au. “But then we have a lot of people saying ‘Do you have two or three hectares?’”

Cambodia’s government extends tax breaks to boost real estate market recovery

Cambodian real estate experts have praised the government’s decision to extend tax incentives for real estate transactions and related services, viewing it as a crucial step to sustain and promote growth in a sector that has struggled since early 2020 due to the COVID-19 pandemic.

On 9th October, the Ministry of Economy and Finance announced the continuation and extension of these tax breaks. The notice follows the government’s decision, approved by Prime Minister Hun Manet, detailed in the special statement on the “Achievements of the First Year of the Seventh Legislature of the National Assembly” on 22nd August. It outlines a reduction in tax burdens for housing developers and property owners.

Sorn Seap, president of the Cambodian Valuers and Estate Agents Association, told The Phnom Penh Post on 10th October that this reflects the government’s continued support for the private sector, especially real estate, which has been impacted by the global crisis in recent years. “The continued tax exemption will ease the burden on developers, property owners and buyers. This will also promote a more robust property market, leading to more competitive prices,” he noted.

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