AIAIG Overseas Property Investment Weekly Report: Global Price and Rent...

Week 51 falls within the typical year-end trading window: transaction pace naturally slows down, and the market enters a phase of 'inventory and repricing.' From a global perspective, the real estate market at the end of 2025 resembles more of a 'differentiation confirmation period': • Europe and the United States: Under high interest rates and stricter regulatory environments, transaction volumes are weak, but core assets have not experienced a systemic plunge. • Southeast Asia: More reflects a cash flow logic of 'strong rents and stable prices.' • Japan: Low volatility characteristics are strengthening, being used by more funds as a portfolio anchor. • Dubai: High returns coexist with cycle awareness, and investors are increasingly focusing on sector and product quality. AIAIG Viewpoint: The key to success in 2026 is not 'betting on a single market,' but 'using a portfolio to capitalize on differentiation.'

The common characteristic of Southeast Asia by the end of 2025 is that rental demand is more certain than buying sentiment. • Thailand: The overlap of short-term and long-term rental demand during the peak tourist season makes it easier for rents to rise in hotspot cities. • Vietnam: Against the backdrop of increased regulatory focus on 'housing affordability,' prices are less likely to be quickly driven up by speculative sentiment, and the market leans more towards 'slow variables.' • Malaysia: Sectors supported by owner-occupation and study-abroad demand are more stable, with price elasticity typically not as strong as rental elasticity. AIAIG reminder: For long-term allocation in Southeast Asia, the core is not 'buying at the lowest point,' but 'buying on the sustainable rental demand line' (strong demand can be formed by selecting two out of four factors: transportation, employment, education, and tourism).

Japan's key advantage by the end of 2025 is not high returns, but low volatility and regulatory certainty. With the advancement of reforms in foreign investment property purchase declaration and registration information this week, Japan's market logic is more likely to move towards: • Greater asset transparency (easier to be counted and governed) • More controllable risks (policy tools are more refined, rather than crude) AIAIG View: Japan is more like a 'stabilizer' for cross-border asset portfolios, particularly suitable for complementing more volatile markets such as Southeast Asia/Dubai.

Dubai's rental yield advantage remains significant, but the investment experience increasingly depends on two things: 1) Financing efficiency: Mortgage channels, interest rates, and approval speed directly affect acquisition costs. 2) Market timing: Year-end often sees reduced liquidity and more divergent pricing, with high-quality assets being more resilient, while general assets are more likely to offer room for negotiation. This week's launch of a digital mortgage platform is a typical move to 'improve financing efficiency.' Meanwhile, the stable threshold for the Golden Visa (common anchor point being property value reaching 2 million AED) continues to provide institutional certainty for medium- to long-term residency and asset allocation. AIAIG reminder: Dubai is more suitable for investors focused on 'cash flow + medium- to long-term residency planning'; if your goal is short-term price differentials, you should more carefully evaluate entry timing and sector popularity.

For cross-border allocation, the most important background variable by the end of 2025 remains the expected path of U.S. dollar interest rates: • Prolonged high interest rates in Europe and the U.S. will continue to suppress high-leverage buying and short-term trading. • In the Gulf region, due to currency pegs to the U.S. dollar, the interest rate background also transmits to its financial markets and mortgage costs. This week's high sensitivity of Gulf markets to the Federal Reserve's path also reflects from the side: global assets are still waiting for "a clearer pace of interest rate cuts." Real estate, as a high-duration asset, will continue to be influenced by interest rate expectations in the future.

AIAIG's Reusable Framework for Investors (Applicable to Cross-Border Allocation Before 2026): 1) Base Layer (Low Volatility, Clear Rules): Represented by markets like Japan, with the core goal being stability and predictability. 2) Cash Flow Layer (Stronger Rental Certainty): Represented by high-demand cities in Southeast Asia, focusing on assets that "can be rented out." 3) Elasticity Layer (High Returns but More Timing-Dependent): Represented by Dubai, prioritizing sector and product quality, while controlling cyclical risks. The significance of this framework lies in: When the world enters an era of divergence, you don't need to bet on the only correct answer; instead, use a structured portfolio to achieve reasonable returns across multiple answers.

The biggest revelation for investors in Week 51 is: global real estate has shifted from a 'rise and fall together' macro-cycle into a multi-polar differentiation era determined by 'regulations, population, industry, and finance'. In such an era, the most important capability is not predicting short-term fluctuations, but rather: • Using markets with clear regulations as a base position • Using rental certainty for cash flow • Using flexible markets for return enhancement AIAIG Perspective: By 2026, good investors will resemble 'asset allocators' more than 'single-market bettors'.