Southeast Asia and Australia Property Rules — 2026-10-18

Top developments

Vietnam proposes limiting foreign home ownership to apartments

The Communist Party of Vietnam has proposed a significant land policy change that would restrict foreign buyers to apartment ownership, effectively barring them from purchasing landed houses. This move aims to curb speculation in a market where home prices have exceeded 19 times the median income, though apartments would remain accessible to foreign investors. The proposal marks a shift in Vietnam's opening-up policy for real estate, potentially impacting foreign demand in the landed residential segment.

Brisbane overtakes Sydney in Australia's steepest housing decline

Australia's Cotality Home Value Index fell 1.1% in September 2026, marking the sharpest monthly decline since December 2022. Brisbane recorded the steepest fall among capital cities at 1.5%, edging out Sydney's 1.4% decline, while Melbourne fell 0.7% and Adelaide and Perth dropped more than 1%. Only Darwin posted a positive movement (+0.4%) among the capitals, highlighting the broad-based nature of the downturn driven by higher borrowing costs and affordability pressures.

Singapore private prices hit two-year high while HDB resale dips

Singapore's private residential property price index rose 1.4% in Q3 2026, its fastest quarterly rise in two years, reaching a new record of 222.5. In contrast, the HDB resale price index fell 0.2% to 202.4, marking a fourth consecutive decline from its peak. This divergence suggests a market split where private homeowners are capitalizing on price acceleration, while the public housing resale market continues to cool despite the lifting of the 15-month wait-out period.

Bangkok luxury condo sales surge 62% amid rising costs

CBRE reported that sales in Bangkok's luxury condominium and high-end housing segments surged by 62%, driven by strong demand in Phuket and Pattaya. This growth occurred despite the Real Estate Information Center (REIC) reporting a 2.2% year-on-year increase in new condo prices in Bangkok and its vicinity for Q3 2026, attributed to rising land and construction material costs. The resilience of the luxury segment highlights the bifurcation in the Thai property market, where high-end buyers remain active even as broader market liquidity faces pressure.

Victoria expands tax cuts to aid first-home buyers

The Victorian government is moving to unwind more property taxes to stimulate development and assist first-home buyers, as the state lags behind its housing targets. Labor's proposal includes tax cuts for foreigners and adjustments to support first-home buyers, aiming to spur construction activity and improve affordability in Melbourne. This policy shift comes amid a broader national trend of declining values, with Melbourne recording a 0.7% monthly drop in September.

Local view

In Vietnam, local media reports significant pressure on liquidity in the commercial housing sector, with industrial property and social housing remaining bright spots. Tien Phong news highlights that secondary apartment prices in Hanoi have dropped 15–20% after a period of overheating, creating opportunities for end-users. Meanwhile, Dan Viet notes that Ho Chi Minh City's real estate business grew only 4.82% in the first nine months of 2026, prompting authorities to accelerate land auctions and legal unblocking of projects.

In Thailand, Bangkok Biz News emphasizes the strength of the luxury segment, with CBRE noting that Phuket and Pattaya markets remain robust. Conversely, Thansettakij reports that new condo prices are rising due to increased input costs, with the REIC index showing a 2.2% year-on-year increase in Q3. Local stakeholders are watching how these cost pressures will impact future supply and foreign buyer interest under the existing 49% foreign quota rules.

Context & numbers

• Australia: The Cotality Home Value Index fell 1.1% in September 2026. Brisbane (-1.5%) and Sydney (-1.4%) led the declines, while Melbourne fell 0.7%. Only Darwin (+0.4%) among capitals recorded growth.
• Singapore: Private residential prices rose 1.4% in Q3 2026 (URA flash estimate), the fastest rise in two years. HDB resale prices dipped 0.2% to an index of 202.4.
• Vietnam: Hanoi secondary apartment prices have corrected by 15–20%. Ho Chi Minh City real estate business growth was 4.82% for the first nine months of 2026.
• Thailand: New condo prices in Bangkok and vicinity rose 2.2% year-on-year in Q3 2026. Luxury condo and high-end housing sales volume increased by 62%.

On the radar

• Vietnam Land Law Revisions: The proposed restriction on foreign ownership of landed homes is expected to be a major topic in the upcoming Land Law amendments, with potential impacts on foreign investment flows into Vietnam's landed property segment.
• Singapore Supply Pipeline: The Urban Redevelopment Authority (URA) has confirmed 4,745 private residential units for the second half of 2026, bringing the full-year confirmed supply to 9,320 units—over 50% higher than the 10-year average. This surge in supply may exert downward pressure on private prices in 2027.
• Thailand Transfer Fee Reduction: The ongoing reduction of transfer and mortgage registration fees to 0.01% for properties under 7 million baht is set to continue until June 30, 2027, continuing to support entry-level buyer activity.