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USD813 million in foreign investments to PH in August, and other stories

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For PropertyGuru’s real estate news roundup, foreign direct investments net inflows amounted to USD813 million in August this year, according to the Central Bank of the Philippines. In other news, Saudi Arabia’s real estate price index rose by 2.6 percent in the third quarter of 2024 compared to the same period last year. Lastly, demand for backpacker and hostel accommodation in Queensland’s Gold Coast exceeds the supply available on the market.

Foreign direct investments (FDI) to the Philippines post USD813 million net inflow in August

Foreign direct investments (FDI) net inflows amounted to USD813 million in August this year, the Bangko Sentral ng Pilipinas (BSP) said in PNA.

Data released on Monday showed that the FDI net inflows during the month were lower by 14.5 percent than the USD951 million net inflows recorded in August 2023.

FDIs include investments by non-resident direct investors in resident enterprises whose equity capital in the latter is at least 10 percent and investments made by non-resident subsidiaries or associates in their resident direct investors. The BSP said an FDI can take the form of equity capital, reinvestment of earnings, or borrowings.

According to the BSP, the decline in FDI net inflows in August was due mainly to the 21.6 percent contraction in nonresidents’ net investments in debt instruments to USD529 million from USD675 million.

Saudi Arabia’s real estate price index rises 2.6% in Q3: GASTAT

Saudi Arabia’s real estate price index rose by 2.6 percent in the third quarter of 2024 compared to the same period last year, driven by growth in residential sector expenses, according to official data.

The General Authority for Statistics said in Arab News that residential real estate prices increased by 1.6 percent year on year in the third quarter. Meanwhile, commercial and agricultural sector property expenses rose by 6.4 percent and 8.7 percent, respectively.

Developing the real estate sector is a key component of Saudi Arabia’s Vision 2030, as the Kingdom works to become a global tourism and business destination by the decade’s end.

The Real Estate General Authority anticipates that Saudi Arabia’s property market, one of the Middle East’s fastest-growing sectors, will reach a market volume of USD69.51 billion in 2024 and USD101.62 billion by 2029, with a projected compound annual growth rate of 8 percent.

Gold Coast backpacker and hostels market sees undersupply – M3 Property

Demand for backpacker and hostel accommodation in Queensland’s Gold Coast is exceeding the supply available on the market, according to findings from the latest M3 Property research report.

The report, Gold Coast Backpacker Market Review – October 2024, analyses the current state of the backpackers and hostels market on the Gold Coast. Research shows that the market is undersupplied, with a lack of budget-priced backpacker hostels in comparison with the demand from this sector of the travel market. However, while the industry has low barriers to entry, there are some key challenges facing the sector.

These challenges include the rising price of beds due to the relative lack of competition in the sector, the popularity of accommodation-share providers such as Airbnb, and rising inflation and interest rates, which have not only driven up operator costs but also reduced real household discretionary incomes in Australia.

Despite this, there is relatively high demand for the sector. Backpacker and hostel accommodation is part of the Caravan Parks, Holiday Houses, and Other Accommodation sector, which generated Australia-wide revenue of AUD306.7 million for the 2024 financial year. Industry revenue for the sector is forecast to increase by 1.1 percent over the five years to 2029, as The Hotel Conversation reports.

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

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