How we plan to add value in 2025!

Last week, I was interviewed by Max Chernov, a well-known YouTuber in Singapore who talks about expat life in Asia. In this interview, I also talk about how home equity loans are used for liquidity around the world – worth a listen.

We have decided to stop our Global Investor Weekly and focus on more value-added content regarding investment strategies, loan programs and other useful information.

To start the year, I want to quickly talk about our key offerings that help our global real estate investors.

  1. International Residential Mortgages
  2. Global Home Equity/Bridging Loans
  3. Referral Partner Program

1. International Residential Mortgages

While we offer residential mortgages to many countries, our core strength is offering U.S. mortgages to overseas Expats and Foreign Nationals. The U.S. continues to exhibit the strongest price appreciation for any G20 countries, with rental yields in the mid-teens on average. Download our recent eBook on the Highest Rental Yield cities globally.

2. Global Home Equity/Bridging Loans

Get access to cash quickly by tapping your home equity in the U.S., Canada, London, Australia and Singapore. In Singapore, we have funded over $400M over the past 2 years, illustrating the lack of traditional bank financing available when the need for cash arises.    

Given the flexibility of these loans, we have clients who use the funds for: 

  • Buying more property
  • Golden Visas
  • Crypto
  • Tuition
  • Healthcare costs
  • Investment opportunities
  • Working capital company level
  • Insurance premium
  • Pay down high-cost debt
  • And the list goes on

3. Global Referral Partners

Our team works with partners globally, primarily mortgage brokers, client advisors, private bankers, and even influencers! We pay a generous referral fee for any successful funding.

Housekeeping – If you want to receive content from our U.S. subsidiary, America Mortgages, please reply 'yes', and we will add you to that distribution list. This content will focus exclusively on U.S.-related topics, strategies, and loan programs.

All the best in 2025!

[email protected]

Global Property Investor – Singapore Landed Home Sales Jump 18.6% in 2024

Mortgage Broker Singapore

USA

Mortgage applications in the U.S. increased by 33.3% for the week ending January 10, 2025. This marked the largest rise in a month, driven by both purchase and refinance applications. Refinance applications saw a 44% increase, while purchase applications grew by 27%. Refinance applications also saw an increase in share, rising to 42.7%.

Source: Mortgage Applications Increase in Latest MBA Weekly Survey

U.K.

In November 2024, U.K. house prices rose 3.3% year-over-year, the fastest increase since February 2023. This follows a 3.0% rise in October. Despite high borrowing costs, the property market remains strong. Private-sector rents also increased by 9.0% in December, with London seeing the highest increase at 11.5%. Investors expect further interest rate cuts from the Bank of England in 2025 after a surprise drop in inflation.

Source: House prices in UK rise by most since February 2023

Canada

In Q4 2024, Canadian home prices rose 3.8%, with the average price reaching $819,600. The median price for single-family homes increased 4.9% to $855,900, while condos saw a 1.5% rise to $592,700. Housing market activity picked up, especially in major cities, as buyers regained confidence, helped by interest rate cuts and mortgage rule changes. The market is expected to continue recovering, with a projected 6% increase in home prices by the end of 2025.

Source: Canada real estate: Home prices rose 3.8% in Q4 as sluggish market starts to pick up

Australia

Australia’s housing market showed resilience in 2024, with cities like Perth, Adelaide, and Brisbane reaching record highs in house and apartment prices. Perth led with a 19.5% rise in house prices, and apartment prices saw a 28.2% increase. However, growth slowed in the second half of the year, indicating market stabilization. Listings increased, favoring buyers, with Sydney seeing its highest number of listings in three years.

Source: Australian housing market: Record highs amid slowing growth

Dubai

Dubai’s real estate market saw $136 billion in transactions in 2024, a 27% increase. Investors earned $27.36 billion, with strong demand in Palm Jumeirah, Downtown Dubai, and Dubai Marina. Key factors driving growth include 3.3% economic growth, high rental yields in areas like Dubai Investments Park and Discovery Gardens, and a strong population growth of 4.66% in 2024.

Source: Dubai investors earn $27.36 billion from real estate sector in 2024

Singapore

In 2024, landed home sales in Singapore rose 18.6%, reaching S$6.1 billion. While prices for landed homes grew slightly by 0.1%, demand remained stable despite a 0.9% quarterly decline in Q4 2024. The Good Class Bungalow (GCB) segment also saw more transactions, with 14 GCBs sold in the second half of the year, 45% more than in the first half of 2024. Buyers continued to pay high prices, with the average unit land price rising to S$1,971 per square foot. Prices are expected to rise by 3% in 2025.

Source: Singapore landed home sales up 18.6% to S$6.1b in 2024

Frequently Asked Questions

Q1: Why did Singapore’s landed home sales rise so strongly in 2024?

A: The increase came from steady demand, growing interest in Good Class Bungalows, and buyers willing to pay premium prices. Global Mortgage Group notes that high net worth buyers continue to view landed homes as long term wealth assets.

Q2: How does Singapore’s performance compare to other global property markets?

A: While many countries saw price recovery, Singapore’s landed segment stood out with an 18.6 percent jump in sales. This stability makes Singapore attractive for overseas investors working with Global Mortgage Group.

Q3: Are landed home prices in Singapore expected to rise further in 2025?

A: Yes, analysts expect prices to grow by around 3 percent in 2025 as demand remains consistent and supply stays limited. Investors use Global Mortgage Group insights to time market entry.

Q4: Why is the Good Class Bungalow segment drawing more buyers?

A: GCBs offer exclusivity and long term value, and transactions grew sharply in the second half of 2024. This segment remains a preferred choice for affluent clients seeking premium real estate opportunities.

Q5: How can overseas buyers invest in Singapore property during market growth?

A: Foreign investors often rely on tailored financing such as international mortgage programs from Global Mortgage Group, which help them navigate regulatory requirements and secure strong assets in competitive areas.

Buy property where CHIPS Act will add 500K jobs

PREVIEW: The CHIPS Act will add over 500,000 new jobs. As a property investor, you want to own in areas where employment will be robust with high-wage renters. 

The CHIPS and Science Act is a U.S. federal law enacted in August 2022 to bolster the domestic semiconductor industry, enhance technological innovation, and strengthen national security by bringing manufacturing onshore. 

Total funding, investment and spending is expected to be $500 billion.

More importantly, creating over 500,000 jobs over the next 5-10 years.

As a property investor, you want to own in areas where employment will be robust with high-wage renters. Learn which specific U.S. states will benefit the most.

THE HOUSING MARKET

The CHIPS and Science Act could have significant effects on the U.S. housing market due to its focus on stimulating domestic semiconductor manufacturing and fostering economic growth. 

Here's how the act might influence the housing market:

1. Increased Demand for Housing in Manufacturing Hubs

  • Job Creation: The CHIPS Act is expected to create 500,000 high-paying jobs in semiconductor manufacturing, research, and related sectors. This influx of employment will drive housing demand in areas surrounding major chip production facilities, such as:
    – Arizona (Phoenix)
    – Texas (Austin, Taylor)
    – New York (Clay, Albany)
    – Ohio (New Albany)
    – Oregon (Hillsboro)
  • Population Growth: Migration to these regions for employment opportunities will increase the need for housing, potentially driving up home prices and rents.

2. Boosted Construction Activity

  • Residential Development: Increased demand for housing near semiconductor facilities could spur residential construction projects to accommodate the growing workforce.
  • Infrastructure Expansion: Investments in roads, utilities, and public amenities to support these facilities may also enhance local real estate markets.

3. Rising Property Values

  • Economic Growth: The influx of jobs and investments is likely to enhance local economies, increasing property values and attracting real estate investors to these regions.
  • Regional Hot Spots: Cities and states benefiting from the CHIPS Act could experience accelerated growth in property values, creating new real estate hot spots.

4. Rental Market Growth

  • Short-Term Demand: Many workers relocating for semiconductor jobs may initially rent before purchasing homes, boosting rental market activity.
  • Corporate Housing: Companies building semiconductor facilities may also increase demand for temporary housing for contractors and employees.

5. Housing Affordability Challenges

  • Pressure on Supply: A surge in demand without corresponding increases in housing supply could exacerbate affordability issues in regions with already tight housing markets.
  • Gentrification Risks: Rapid economic growth could lead to higher housing costs, displacing lower-income residents in affected areas.
  • This is a perfect scenario for investors and rents are bid-up in these areas.

6. Long-Term National Impacts

  • Economic Stability: By strengthening the U.S. economy and ensuring supply chain resilience, the CHIPS Act may contribute to long-term stability in the national housing market.

STATES TO SEE THE BIGGEST IMPACT

1. Arizona

  • Major Projects: Intel’s expansion in Chandler and Taiwan Semiconductor Manufacturing Co. (TSMC) in Phoenix.
  • Investment: TSMC’s facility represents over $6.6 billion in funding, while Intel's expansion accounts for $7.87 billion.

=> Jobs: Intel's projects in Arizona are expected to create up to 30,000 jobs across multiple states, including Arizona, New Mexico, Ohio, and Oregon. 

2. New York

  • Major Projects: Micron Technology’s $100 billion commitment to a new chip factory in Clay, New York.
  • Incentives: $5.5 billion in state tax credits and $825 million in federal funding for Albany NanoTech.

=> Jobs: Micron's investment in Clay, New York, is projected to create approximately 20,000 jobs. 

3. Ohio

  • Major Projects: Intel’s semiconductor manufacturing expansion in New Albany.
  • Investment: Billions are allocated to develop a state-of-the-art chip production facility.

=> Jobs: Intel’s expansion in Ohio is part of a broader initiative expected to generate up to 30,000 jobs across multiple states. 

4. Texas

  • Major Projects: Samsung Electronics in Taylor and Texas Instruments across multiple locations.
  • Investment: Samsung has committed $17 billion, Texas Instruments $30 billion.

=> Jobs: Approximately 10,000-15,000 direct jobs in semiconductor manufacturing and an estimated 6,500 construction jobs during the build-out phase.

5. Oregon

  • Major Projects: Intel’s ongoing investment in Hillsboro as part of its U.S. manufacturing network.

=> Jobs: Intel's activities in Oregon are included in the company's expansion plans, which are expected to create up to 30,000 jobs.

6. Utah

  • Major Projects: Texas Instruments’ semiconductor wafer plant.
  • Investment: Part of Texas Instruments’ $1.6 billion allocation shared with Texas.

=> Jobs: Expected to create 500 to 800 direct jobs in manufacturing and engineering roles at the Lehi plant.

THE UPSHOT

The CHIPS Act aims to:

  • Reduce U.S. reliance on foreign semiconductor manufacturing.
  • Create high-paying jobs across the country.
  • Boost local economies in states with large manufacturing investments.

The CHIPS Act will likely stimulate regional housing markets near semiconductor manufacturing hubs through job creation and population growth. While it brings opportunities for investment and development, it may also pose challenges, such as affordability concerns and supply pressures, requiring proactive measures from policymakers and local governments to ensure balanced growth.

These states, due to existing infrastructure, workforce capabilities, and favorable policies, are emerging as leaders in the domestic semiconductor resurgence.

Over 500,000 total jobs are expected to be created over the next 5-10 years comprising of:

  • Direct and Indirect Jobs: 100,000–150,000 permanent jobs.
  • Construction Jobs: 100,000 temporary jobs.
  • Grand Total: 200,000–250,000 jobs 

The Housing Market

The CHIPS and Science Act could have a significant positive impact on the U.S. housing market due to its focus on stimulating domestic semiconductor manufacturing and fostering economic growth.

Here's how:

1. Increased Demand for Housing in Manufacturing Hubs

  • Job Creation: The CHIPS Act is expected to create 500,000 high-paying jobs in semiconductor manufacturing, research, and related sectors. This influx of employment will drive housing demand in areas surrounding major chip production facilities, such as:
    – Arizona (Phoenix)
    – Texas (Austin, Taylor)
    – New York (Clay, Albany)
    – Ohio (New Albany)
    – Oregon (Hillsboro)
  • Population Growth: Migration to these regions for employment opportunities will increase the need for housing, potentially driving up home prices and rents.

2. Boosted Construction Activity

  • Residential Development: Increased demand for housing near semiconductor facilities could spur residential construction projects to accommodate the growing workforce.
  • Infrastructure Expansion: Investments in roads, utilities, and public amenities to support these facilities may also enhance local real estate markets.

3. Rising Property Values

  • Economic Growth: The influx of jobs and investments is likely to enhance local economies, increasing property values and attracting real estate investors to these regions.
  • Regional Hot Spots: Cities and states benefiting from the CHIPS Act could experience accelerated growth in property values, creating new real estate hot spots.

4. Rental Market Growth

  • Short-Term Demand: Many workers relocating for semiconductor jobs may initially rent before purchasing homes, boosting rental market activity.
  • Corporate Housing: Companies building semiconductor facilities may also increase demand for temporary housing for contractors and employees.

5. Housing Affordability Challenges

  • Pressure on Supply: A surge in demand without corresponding increases in housing supply could exacerbate affordability issues in regions with already tight housing markets.
  • Gentrification Risks: Rapid economic growth could lead to higher housing costs, displacing lower-income residents in affected areas.
  • This is a perfect scenario for investors and rents are bid-up in these areas.

6. Long-Term National Impacts

  • Economic Stability: By strengthening the U.S. economy and ensuring supply chain resilience, the CHIPS Act may contribute to long-term stability in the national housing market.

STATES TO SEE THE BIGGEST IMPACT

1. Arizona

  • Major Projects: Intel’s expansion in Chandler and Taiwan Semiconductor Manufacturing Co. (TSMC) in Phoenix.
  • Investment: TSMC’s facility represents over $6.6 billion in funding, while Intel's expansion accounts for $7.87 billion.

=> Jobs: Intel's projects in Arizona are expected to create up to 30,000 jobs across multiple states, including Arizona, New Mexico, Ohio, and Oregon.

2. New York

  • Major Projects: Micron Technology’s $100 billion commitment to a new chip factory in Clay, New York.
  • Incentives: $5.5 billion in state tax credits and $825 million in federal funding for Albany NanoTech.

=> Jobs: Micron's investment in Clay, New York, is projected to create approximately 20,000 jobs. 

3. Ohio

  • Major Projects: Intel’s semiconductor manufacturing expansion in New Albany.
  • Investment: Billions are allocated to develop a state-of-the-art chip production facility.

=> Jobs: Intel’s expansion in Ohio is part of a broader initiative expected to generate up to 30,000 jobs across multiple states. 

4. Texas

  • Major Projects: Samsung Electronics in Taylor and Texas Instruments across multiple locations.
  • Investment: Samsung has committed $17 billion, Texas Instruments $30 billion.

=> Jobs: Approximately 10,000-15,000 direct jobs in semiconductor manufacturing and an estimated 6,500 construction jobs during the build-out phase.

5. Oregon

  • Major Projects: Intel’s ongoing investment in Hillsboro as part of its U.S. manufacturing network.

=> Jobs: Intel's activities in Oregon are included in the company's expansion plans, which are expected to create up to 30,000 jobs.

6. Utah

  • Major Projects: Texas Instruments’ semiconductor wafer plant.
  • Investment: Part of Texas Instruments’ $1.6 billion allocation shared with Texas.

=> Jobs: Expected to create 500 to 800 direct jobs in manufacturing and engineering roles at the Lehi plant.

THE UPSHOT

The CHIPS Act aims to:

  • Reduce U.S. reliance on foreign semiconductor manufacturing.
  • Create high-paying jobs across the country.
  • Boost local economies in states with large manufacturing investments.

The CHIPS Act will likely stimulate regional housing markets near semiconductor manufacturing hubs through job creation and population growth.

We are happy to introduce you to realtors and property managers in these areas. If there’s further interest, we’re happy to explore expanding these services.

These states, due to existing infrastructure, workforce capabilities, and favorable policies, are emerging as leaders in the domestic semiconductor resurgence.

Global Mortgage Group is ready to help you navigate these exciting opportunities. Whether you're an investor targeting high-demand markets or a homeowner exploring financing options, we provide tailored solutions to meet your needs.  

Contact us at [email protected], or visit www.gmg.asia to get started. Let us help you achieve your investment goals with expert guidance and customized mortgage solutions!

Frequently Asked Questions

Q1: How will the CHIPS Act create new real estate opportunities for investors?

A: The CHIPS Act will generate more than 500,000 high paying jobs, which increases demand for homes and rentals in states with major semiconductor projects. Global Mortgage Group helps investors identify these growth markets.

Q2: Which states are expected to benefit the most from CHIPS Act investments?

A: States with major semiconductor expansions include Arizona, Texas, New York, Ohio, Oregon, and Utah. These regions are likely to see stronger housing demand and rising property values.

Q3: Why are rental markets expected to grow in chip manufacturing hubs?

A: Incoming workers often rent before buying a home, and companies also require temporary housing for contractors. This boosts rental activity and can improve returns for investors working with Global Mortgage Group.

Q4: Could the CHIPS Act affect housing affordability in certain areas?

A: Yes. Rapid job growth may increase housing demand faster than supply, which can push prices up in high growth cities. Investors should evaluate affordability trends before purchasing.

Q5: How can Global Mortgage Group support investors entering CHIPS Act regions?

A: Global Mortgage Group connects investors with financing solutions and local real estate partners. This helps buyers secure property in high demand markets influenced by semiconductor expansion.

Global Property Investor – Dubai Real Estate Transactions Hit $136 Billion in 2024

UK Resident Buying Property in USA

USA

U.S. property prices rose nearly 5% year-over-year, according to Green Street. The industrial and residential sectors continue to perform well, and retail properties are also improving. Despite ongoing affordability and inventory challenges, analysts expect the market to remain strong for both domestic and international investors.

Source: U.S. Property Prices Up Nearly 5% Year-Over-Year

U.K.

U.K. house prices increased by 0.7% in December 2024 compared to November and by 4.7% year-over-year, with the average price reaching £269,426. The rise is mainly due to buyers rushing to complete purchases ahead of the planned April 2025 stamp duty increase. However, affordability remains an issue, particularly for first-time buyers in London.

Source: London first-time buyers: is 2025 your year to buy a home?

Canada

In 2025, Canada's housing market faces a need for investment in older rental properties, with many units built before 2000. Upgrading these properties is key to addressing the growing demand for affordable rentals. Experts also predict slightly lower mortgage rates this year, which may ease financial pressures for buyers and renters.

Source: Mortgage outlook 2025: Canadians can expect lower rates, deals this year

Australia

Queensland stands out in Australia's housing market for its affordability and growth potential. Nationally, house prices fell 0.2% in December 2024, marking the first decline in nearly two years. Sydney and Melbourne recorded decreases, while Perth and Adelaide saw slight gains. High interest rates and affordability challenges continue to impact the market overall.

Source: Queensland on fire: Is Australia's Sunshine State the next buying opportunity?

Dubai

Dubai's real estate market saw property transactions exceed $136 billion in 2024. Key investment areas include Palm Jumeirah, Downtown Dubai, and Dubai Marina, with demand driven by luxury properties and global investor interest. Analysts predict a steady growth in both the luxury and affordable housing sectors in 2025.

Source: Dubai real estate transactions surpass $136 billion in 2024: Most popular areas to invest in this year

Singapore

In 2025, housing affordability and urban redevelopment are key concerns for Singapore's property market. Developers are calling for adjustments to the Additional Buyer's Stamp Duty (ABSD) to improve affordability for both local and foreign buyers. Redevelopment projects in key areas are expected to create new opportunities for investors.

Source: ABSD tweak, housing affordability, urban rejuvenation lead property players' Budget wish list 

Frequently Asked Questions

Q1: How much did Dubai’s real estate market grow in 2024?

A: Dubai’s property transactions exceeded $136 billion in 2024, with strong demand in areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina, according to Global Mortgage Group insights.

Q2: Which areas in Dubai are most popular for property investment?

A: Luxury and high-demand locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina are attracting both local and international investors seeking high returns.

Q3: How is the Dubai property market expected to perform in 2025?

A: Analysts predict steady growth in Dubai’s real estate, with opportunities in both luxury and affordable housing sectors, making it a key market for Global Mortgage Group clients.

Q4: Can foreign investors access property financing in Dubai?

A: Yes, overseas investors can secure mortgages in Dubai, and Global Mortgage Group offers tailored solutions to help non-residents invest efficiently in the local market.

Q5: What drives demand for Dubai real estate?

A: Demand is fueled by global investor interest, luxury property appeal, and strong economic fundamentals, making Dubai a stable and lucrative market for investors working with Global Mortgage Group.

Global Property Investor – U.S. Market Sees Early Signs of a Thaw in 2025

International Mortgage

USA

The U.S. housing market is beginning to recover as 2025 starts, with home sales seeing a slight increase after a slowdown in 2024. Lower mortgage rates have contributed to the improvement, though affordability remains a challenge, particularly in cities like Austin. Experts expect the market to stabilize gradually.

Source: Frozen Housing Market Shows Signs of Thawing as 2025 Begins

U.K.

In December 2024, U.K. house prices rose more than expected, with a 0.7% increase from November and a 4.7% annual rise, bringing the average house price to £269,426. This growth is attributed to buyers rushing transactions ahead of the planned stamp duty increase in April 2025.

Source: U.K. House Prices Rise Close to Record High at End of 2024

Canada

Experts emphasize the need for Canada to invest in older rental housing stock, not just new constructions, to address the growing demand for affordable rentals. With a significant portion of rental properties built before 2000, upgrading existing units is crucial for meeting current housing needs.

Source: Canada Needs to Invest in Older Rental Housing, Not Just Build New Real Estate Properties

Australia

Australian house prices fell 0.2% in December 2024, the first drop in 22 months. Sydney and Melbourne led declines, while Perth and Adelaide saw gains. High interest rates and affordability constraints contributed to the slowdown, setting the stage for a soft start to 2025.

Source: Australian House Prices Drop for the First Time in 22 Months

Dubai

Dubai's residential property prices, which surged by over 50% since the pandemic, are expected to see a more moderate rise of 5-10% in 2025. This moderation reflects a stabilizing market, supported by strong demand across both luxury and affordable housing sectors, as well as continued interest from global investors.

Source: Dubai Housing Market to See Price Rise Moderation in 2025

Singapore

Private home prices in Singapore rose 2.3% in the last quarter of 2024, reversing a prior decline, driven by new project sales and lower borrowing costs. Annual prices increased by 3.9%, marking eight consecutive years of growth. Analysts warn of potential new cooling measures amid affordability concerns.

Source: Singapore’s Home Prices Rebound on Year-End Sales Boom

Frequently Asked Questions

Q1: What early signs indicate a recovery in the U.S. housing market in 2025?

A: The U.S. housing market is showing slight growth in home sales and stabilization, aided by lower mortgage rates, signaling a gradual thaw according to Global Mortgage Group insights.

Q2: Which U.S. cities face affordability challenges despite market improvements?

A: Cities like Austin continue to experience affordability constraints, even with increased home sales and lower mortgage rates, making careful investment planning essential.

Q3: How are lower mortgage rates influencing the U.S. property market?

A: Reduced mortgage rates are helping buyers access financing more easily, boosting sales and contributing to early signs of market recovery, as observed by Global Mortgage Group.

Q4: What role does Global Mortgage Group play for investors in the recovering U.S. market?

A: Global Mortgage Group provides tailored mortgage solutions and market insights to help international and domestic investors capitalize on emerging opportunities in the U.S. housing sector.

Q5: How does the U.S. market recovery compare to other global property markets?

A: While the U.S. market shows early signs of stabilization, other regions like the U.K., Canada, and Dubai exhibit varying trends in prices and demand, offering diverse opportunities for investors working with Global Mortgage Group.

‘24 Recap + ‘25 Outlook + 10 U.S. Cities to Invest In

2024 RECAP

2024 has been one of the most positive years in recent memory for asset prices – nearly everything has risen with a strong economy, wage growth and the prospect of more manufacturing buoyed by the CHIPS Act. 

The Fed managed to accomplish a "soft landing", a feat rarely achieved. Inflation showed real progress, nearing the Federal Reserve's 2% target, while the labor market remained steady despite cooling in some sectors compared to previous years. Wage growth slowed, easing inflationary pressures, while consumer spending continued to grow. The concept of Income and Wages is evolving in real-time, with the economy giving many alternative ways to make money – this is very exciting, and it makes the U.S. economy's ability to adjust better than other developed countries.

At the heart of the narrative, the Federal Reserve played a central role, finally shifting from years of tightening to cutting interest rates in 2024. While these cuts brought some relief, affordability remained a challenge. Mortgage rates, although lower than their multi-decade highs, hovered around 7%, keeping homeownership out of reach for many. It's important to remember that while associated with the Fed Funds rate, mortgage rates are more correlated to the 10 and 30-year Treasury rates and are based on the secondary market pricing of mortgages. 

The housing market mirrored these dynamics. Home sales saw ups and downs, starting strong in Q1 but dropping to 15-year lows by summer as rates spiked. However, as mortgage rates began to decline in anticipation of rate cuts, activity picked up in the fall, signalling a gradual recovery heading into 2025.

2025 OUTLOOK – WILL WE SEE A CONTINUATION OF STRENGTH?

The year ahead is shaping up to offer more opportunities for homebuyers as the market stabilizes. The Federal Reserve is expected to take a gradual approach to monetary easing. Mortgage rates are forecast to stabilize near 6%, which could become the "new normal." While this isn't as low as the pandemic-era rates, it's a significant improvement over 2024 levels, making homeownership more accessible to millions of households.

According to a recent NAR report, If rates stabilize around 6%, approximately 6.2 million households could regain the ability to afford a median-priced home. Inventory is also expected to improve as new construction ramps up and more homeowners decide to list their properties. Housing starts are projected to approach the historical average of 1.5 million units annually, though inventory will likely remain below pre-pandemic levels.

Home prices are projected to rise at a modest 2% rate, marking a more sustainable pace compared to previous years. The upshot is that growth will be "less bubbly" but more stable and predictable.

Personal View

I am torn between what I hope the Fed will do and what the market is pricing in. The Fed, unlike other central banks, does not like to surprise the market – and the market is pricing in ONLY 2 cuts in 2025.

The three major components of a fiscal budget are entitlements, defense spending, and interest expense. I can't see entitlements being cut, given how unpopular this would be politically. Defense spending is more important now than ever before, which leaves us with interest expenses. I think Yellen and Powell will ultimately come to an agreement to cut rates and reduce interest payments. Then again, this is hope and not what the market is pricing in.🤞

Many of you will have heard me say this: policymakers can not directly affect housing supply, only housing demand. That is why policies like Stamp Duties are so popular (see Singapore) to cool or stimulate the market. You can't exactly "force" Lennar (largest homebuilder in the U.S.) to build 7M homes (exactly how short the market is) to meet existing demand for homes. Even if they did build 7M homes – the only ones that could afford to purchase these would be institutions and investors.

The dream of owning a primary in the home is dead (yes, I said it) – affordability has gone past the point of no return withaverage homes in the U.S. nearing $500K! Society will gradually adjust to renting, much like in Europe, pushing up rental yields for investors. BTW, Blackstone and its pals know this. 

10 FACTORS DRIVING THE U.S. REAL ESTATE MARKET IN 2025

The National Association of REALTORS® (NAR) identified 10 key factors that will shape local housing markets in 2025:

  1. Fewer Locked-In Homeowners: Areas with fewer homeowners tied to ultra-low mortgage rates will see more properties listed, increasing inventory.
  2. Lower Average Mortgage Rates: Markets with lower rates enable more buyers to qualify, boosting demand and sales activity.
  3. Faster Job Growth: Strong job markets drive housing demand and affordability, especially for first-time buyers.
  4. Millennial Buyers: Areas where more millennials can afford homes will see higher demand for starter homes.
  5. High Net Migration: Regions with strong population growth will experience increased housing activity.
  6. Households Entering Buying Age: Areas with more households reaching their mid-30s will see stronger demand.
  7. Movers Purchasing Homes: A high percentage of movers choosing to buy signals long-term market stability.
  8. Longer Homeownership Tenure: Regions with homeowners surpassing average tenure may see more listings.
  9. Starter-Home Inventory: Markets with more affordable starter homes provide opportunities for first-time buyers.
  10. Home Price Appreciation: Faster appreciation indicates strong demand, wealth generation, and investment potential.

10 CITIES TO INVEST IN 2025

In the same NAR report, they selected 10 areas expected to outperform for their strengths across these factors:

  1. Boston-Cambridge-Newton, MA-NH: Stabilizing rates and a high share of starter homes make this market appealing.
  2. Charlotte-Concord-Gastonia, NC-SC: Strong job growth and migration trends drive demand.
  3. Grand Rapids-Kentwood, MI: Affordable housing and a reduced "lock-in effect" create opportunities.
  4. Greenville-Anderson, SC: Affordability and strong migration patterns make this market a standout.
  5. Hartford-East Hartford-Middletown, CT: Low rates and inventory potential improve affordability.
  6. Indianapolis-Carmel-Anderson, IN: Job growth and affordable housing attract buyers.
  7. Kansas City, MO-KS: Competitive rates and affordability boost its appeal, especially for millennials.
  8. Knoxville, TN: Strong migration and wealth gains drive long-term market stability.
  9. Phoenix-Mesa-Chandler, AZ: A growing population and strong job market fuel demand.
  10. San Antonio-New Braunfels, TX: Job creation and favourable mortgage rates support market growth.

THE UPSHOT

While 2025 won't return to the ultra-low mortgage rates of the pandemic, the year is set to offer more balance, with stabilizing rates, improving inventory, and sustained demand. For homebuyers, this marks a promising shift toward greater accessibility and opportunity in the housing market.

Contact us at [email protected] or visit www.gmg.asia for more insights.

Frequently Asked Questions

Q1: What were the key trends in the U.S. housing market in 2024?

A: In 2024, home prices rose with wage growth and a strong economy, while mortgage rates remained high. Activity fluctuated, but the market showed resilience according to Global Mortgage Group insights.

Q2: How is the U.S. housing market expected to perform in 2025?

A: The market is projected to stabilize with mortgage rates near six percent, modest home price growth, and improved inventory, offering better opportunities for buyers and investors.

Q3: Which factors are driving the U.S. real estate market in 2025?

A: Job growth, millennial buyers entering the market, population migration, affordable starter homes, and home price appreciation are key drivers shaping U.S. housing trends according to Global Mortgage Group.

Q4: What are the top U.S. cities to consider for property investment in 2025?

A: Markets like Boston, Charlotte, Phoenix, Indianapolis, and San Antonio are expected to outperform due to strong job markets, affordability, and growing populations, making them attractive for investors.

Q5: How can Global Mortgage Group assist investors in the U.S. market?

A: Global Mortgage Group offers expert guidance, tailored mortgage solutions, and insights into local trends, helping investors navigate opportunities and maximize returns in high-potential U.S. cities.

Unlocking Singapore Real Estate with Asset-Based Lending: Insights from Global Mortgage Group (GMG)

Singapore Real Estate

Singapore’s real estate market is renowned for its resilience, stability and high returns, attracting investors from around the globe. However, traditional bank financing options can often limit opportunities, particularly for foreign buyers, investors with unconventional income streams, people over a certain age and developers. This is where asset-based lending (ABL) emerges as a game-changer. 

Global Mortgage Group Pte Ltd (GMG), the leading name in Singapore asset based bringing mortgage solutions, has positioned itself at the forefront of this dynamic sector, providing bespoke asset-backed bridging loans specifically tailored to meet the needs of investors in Singapore’s lucrative property market.

What is Asset-Based Bridge Lending?

Asset-based lending allows investors to secure loans using their real estate assets as collateral, rather than relying on income verification, serviceability or credit history. This approach opens doors for high-net-worth individuals (HNWIs), foreign investors, and self-employed individuals seeking to leverage their property portfolios for liquidity or new acquisitions.

The Rising Demand for Asset-Based Loans in Singapore

Singapore’s stable economic environment, attractive rental yields, and limited land availability drive consistent demand for real estate. However, with government cooling measures, tightening lending regulations and stringent lending criteria imposed by local banks, alternative lending options such as asset-based bridging loans has become an increasingly popular alternative. Investors are turning to industry leaders like Global Mortgage Group to unlock equity and maximize returns.

Key Statistics on Asset-Based Lending in Singapore Real Estate:

Loan-to-Value (LTV) Ratios: Typically, asset-based loans in Singapore offer LTV ratios of up to 75-80%, depending on property type and location.

Interest Rates and Structure: Rates generally range from 7.5%, depending on the borrower’s profile and the asset’s market value. These are interest only payments and can often be structured to where there is no debt servicing for the term of the loan. 

Approval Speed: Asset-based loans can often be approved within 2 days and funding within a couple weeks, significantly faster than traditional bank loans.

Why Choose Global Mortgage Group (GMG)?

As the leading provider of international mortgages and asset-based lending solutions, Global Mortgage Group Pte Ltd has earned a reputation for its innovative, client-centric approach. GMG specializes in providing tailored mortgage solutions to global investors, offering competitive rates and unparalleled access to Singapore’s real estate financing landscape.

Key Advantages of Partnering with GMG:

Access to Global Lenders: GMG partners with over 150 international banks and private lenders, ensuring clients receive the best financing terms.

Customized Financing: Whether you're purchasing luxury residential properties, commercial assets, or leveraging equity, GMG crafts bespoke lending solutions based on asset strength.

Expert Market Insights: GMG’s deep understanding of Singapore’s real estate market ensures clients can capitalize on market trends and investment opportunities.

High Approval Rates: With a focus on asset strength rather than income documentation, GMG consistently secures fast approvals for clients facing challenges with traditional banks.

Asset-Based Lending Use Cases:

Foreign Investors: Non-residents can leverage Singapore properties to expand their portfolios without the complexities of local credit checks.

Real Estate Developers: Developers can secure bridge financing for ongoing projects, using completed properties as collateral.

Property Upgraders: Homeowners can unlock equity from existing properties to fund new acquisitions or renovations.

A Proven Track Record

Global Mortgage Group has successfully facilitated hundreds of millions in asset-backed loans for clients across Asia, the US, and Europe. Their expertise in structuring complex cross-border financing deals makes them the go-to partner for investors seeking to capitalize on Singapore’s prime real estate market.

Final Thoughts

Asset-based Singapore Bridging loans is reshaping the way investors approach Singapore’s real estate market, providing unparalleled flexibility and liquidity. With GMG leading the charge, Singapore real estate investors can unlock the full potential of their property assets, ensuring sustainable growth and financial success.

For more information on asset-based lending solutions, contact Global Mortgage Group (GMG) today and take the next step toward expanding your real estate portfolio.

[email protected] or +65 8430-1541 

Frequently Asked Questions

Q1: What is asset-based lending and how does it work in Singapore?

A: Asset-based lending allows investors to secure loans using their property as collateral instead of relying on income verification. Global Mortgage Group provides tailored solutions to leverage property assets efficiently.

Q2: Who can benefit from asset-based bridging loans in Singapore?

A: Foreign investors, self-employed individuals, high-net-worth clients, and developers can access funding that traditional banks may not offer, making Global Mortgage Group a preferred partner for diverse investors.

Q3: How fast can asset-based loans be approved and funded?

A: Asset-based loans through Global Mortgage Group can be approved in as little as two days, with funding available within a few weeks, significantly faster than traditional bank loans.

Q4: What are the advantages of choosing Global Mortgage Group for ABL?

A: GMG offers access to over 150 international lenders, competitive rates, customized financing, and expert insights into Singapore’s real estate market, ensuring investors maximize returns.

Q5: Can developers use asset-based loans for ongoing projects?

A: Yes, property developers can secure bridging finance using completed assets as collateral, allowing them to fund ongoing projects while unlocking equity efficiently with Global Mortgage Group.

Global Property Investor – Singapore’s Home Market Ends 2024 on a High Note

invest in USA real estate from Hong Kong

USA

National house prices in the U.S. remained near historic highs as of December 2024, reflecting continued affordability challenges despite a slight easing of mortgage rates. Experts suggest that the housing market remains constrained by limited inventory and high demand.

Source: National House Prices Hover Near Historical Norms

U.K.

London dominated the U.K.’s priciest postcodes in December 2024, with all top 20 streets located in the capital. High demand in central areas continues to drive up property prices despite economic uncertainties.

Source: London dominates UK’s priciest postcodes with all top 20 streets

Canada

The Bank of Canada reduced its policy rate in December 2024, a move aimed at easing economic pressures and improving housing affordability. This decision is expected to have a gradual impact on mortgage costs and homebuyer activity in 2025.

Source: Bank of Canada Reduces Policy Rate by 50 Basis Points to 3.25%

Australia

Australia’s build-to-rent sector is emerging as the next real estate hotspot, according to a 2025 outlook. Increased interest from institutional investors is expected to reshape the rental market and address long-standing affordability issues.

Source: Outlook 2025: Australia's build-to-rent sector is the next real estate hotspot

Dubai

Dubai’s real estate market is preparing for significant trends in 2025, including growing interest in off-plan properties, digital innovation, and sustainable development. The city remains a key destination for global investors.

Source: Dubai Real Estate Market: 5 Trends Investors Need to Know in 2025

Singapore

Singapore’s private home market ended 2024 on a high note, buoyed by a burst of transactions late in the year. Analysts remain cautious about whether this momentum can be sustained in 2025 amid regulatory scrutiny and high prices.

Source: Singapore’s Private Home Market Closes 2024 on a High

Frequently Asked Questions

Q1: How did Singapore’s home market perform at the end of 2024?

A: Singapore’s private home market ended 2024 strongly with a surge in transactions, reflecting continued investor confidence and high demand according to Global Mortgage Group insights.

Q2: What factors contributed to the late-year momentum in Singapore’s housing market?

A: Increased buyer activity, strong demand for private homes, and market optimism drove the surge in transactions at the end of 2024, supporting price stability.

Q3: Are prices expected to rise or fall in Singapore’s housing market in 2025?

A: While 2024 ended on a high note, analysts caution that regulatory scrutiny and affordability challenges may temper growth, making careful investment planning essential.

Q4: How does Singapore’s housing market compare with other global markets?

A: Singapore remains resilient, similar to Dubai and London, with high demand and limited supply, attracting both local and international investors seeking stable returns.

Q5: How can Global Mortgage Group assist investors in Singapore’s property market?

A: Global Mortgage Group provides tailored mortgage solutions, market insights, and guidance for navigating high-demand areas, helping investors make informed decisions in Singapore.

Global Property Investor – U.K. House Prices Surge 3.4% as First-Time Buyers Re-enter Market

USA

In December 2024, home sales in the U.S. hit a 20-month high, showing increased market activity despite ongoing affordability challenges. Experts say lower mortgage rates helped boost sales, though limited inventory and high prices remain concerns.

Source: Existing Home Sales in the U.S. Hit a 20-Month High

U.K.

House prices in the U.K. went up by 3.4% in October 2024 as more people entered the market. This came as mortgage rates settled a bit, boosting buyer interest. However, future growth might be slowed by economic challenges and inflation.

Source: Average House Prices Went Up by 3.4% in October

Canada

Canada's rental housing supply hit its highest level in 10 years thanks to increased construction efforts. This could help ease the country’s housing shortages over time, making homes more affordable.

Source: Canada's Rental Supply Surges to Decade-High Levels

Australia

Homeowners in Australia made a record median profit of $295,000 when reselling properties in late 2024. Strong demand continues despite higher interest rates and stricter lending conditions.

Source: Australians Made a Record $295,000 Median Profit When Reselling Their Property

Dubai

Dubai's real estate market saw AED 40 billion in transactions in November 2024, driven by strong investor interest and demand for luxury properties. Government policies and a strong economy continue to support the market’s growth.

Source: Dubai Real Estate Market Achieves AED 40 Billion in November 2024 Transactions

Singapore

While Singapore's property market has slowed a bit, branded residences are still popular with investors. These high-end properties are seen as good long-term investments despite concerns about high prices and possible government restrictions.

Source: Market Watchers See Value in Branded Residences in Singapore Despite Slow Take