Saudi Arabia’s property sector set to surge in 2024, plus more news

For PropertyGuru’s news roundup, real estate transactions in Saudi Arabia are expected to take off in 2024. In other stories, increasing the duty-free quota for Chinese tourists to Hong Kong will help support the city’s retailers. Finally, the Philippines won the Best Ports of Call 2024 award at the 10th Asia Cruise Awards amid the government’s intensified push to boost the country’s cruise tourism.

Saudi Arabia’s real estate sector poised for growth in 2024: S&P report

Real estate transactions are set to surge in Saudi Arabia in 2024 thanks to Vision 2030 investments, according to an S&P Global report.

According to Arab News, in a report titled “GCC Real Estate How Credit Stories Have Evolved,” S&P believes the Kingdom’s property sector will also benefit from the 3 percent economic growth anticipated across the Gulf Cooperation Council region in the current year. The rise was attributed to sustained oil-related expansion and an increase of up to 5 percent in non-oil economic activity, particularly in Saudi Arabia and the UAE.

Referring to the Kingdom, the report said: “Sensitivity to high interest rates and price increases led to a reduction in real estate transactions in 2023. We expect the demand to remain robust backed by Vision 2030 investments attracting new businesses and expats to the country.”

It further explained that the decline in interest rates from the second half of 2023 is seen as a catalyst for the mortgage sector after a 35 percent drop across the whole of the year, particularly with the introduction of a new visa regime that enables foreigners to own real estate, thereby stimulating demand and spurring new construction projects.

Hong Kong retailers bank on duty-free quota hike to boost sales

An increase in the duty-free quota for Chinese tourists to Hong Kong may go some way to support the city’s retailers, but visitors from the mainland say prices still need to be more attractive.

From expanding the solo travel scheme for Chinese visitors to Hong Kong in May to bumping up the duty-free shopping quota, the Chinese and Hong Kong governments strive to lure tourists across the border.

This comes as Hong Kong residents increasingly flock to the mainland for shopping and entertainment, saying prices are generally lower and the service is better. Reuters reports that the Asia financial hub is still struggling to recover after the pandemic.

Starting on 1st July, the duty-free shopping quotas for Chinese tourists in Hong Kong were increased from CNY5,000 (USD688) per trip to CNY15,000 for those visiting via six land border control points. The new measure will be expanded to include Chinese visitors entering Hong Kong at all border control points from 1st August.

The government expects the measure to bring additional shopping spending of between HKD8.8 billion (USD1.13 billion) and HKD17.6 billion to the city.

The Philippines bags best ports of call award amid intensified cruise tourism push

The Philippines has won the prestigious Best Ports of Call 2024 award at the 10th Asia Cruise Awards in Jeju Island, South Korea amid the government’s intensified push to boost the country’s cruise tourism.

The Department of Tourism (DOT) received the award during a ceremony at the Asia Cruise Forum on 10th July.

Tourism Secretary Christina Garcia Frasco said in PNA that the award highlights the efforts of cruise tourism stakeholders in revitalizing the country’s cruise industry post-pandemic. “These accolades reaffirm our vision and validate our efforts in positioning our country as a must-visit destination for cruise enthusiasts,” she said.

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