Shifting Asset Correlations in the "Great Volatility"
- In this environment, correlations between asset classes have changed significantly:
- Bonds have become more volatile and can no longer be regarded as a universally "safe" asset.
- Gold, traditionally a haven, is increasingly influenced by speculative capital.
- The US dollar has experienced periods of weakness despite rising risk aversion.
- Notably, the traditional stock–bond relationship underpinning the 60:40 allocation strategy has weakened or even reversed
Martin Towns, Global Head of Real Estate at M&G Investments, observed:
“Real estate has tested the patience of investors in recent years, but it is now firmly back on the agenda for asset allocators.
Following a period of underperformance relative to public markets – and, in some cases, significant value destruction that has been driven by structural change – the asset class has reset.
As capital returns to the sector, we are seeing the fundamental strengths of real estate reassert themselves. Income, diversification and inflation linkage are once again differentiating property – and this is happening at a time when equities and bonds are increasingly moving in tandem, and geopolitical risk continues to inject volatility into the public markets.
Valuations have adjusted meaningfully, prompting an improvement in the relative appeal of real estate. However, the performance of assets will not be uniform. Returns will be driven by selectivity: investing in places that endure, and buildings that are capable of meeting the complex needs of a changing economy.
The opportunity is clear, but investors who want to make the most of it will need to take an active, disciplined approach. There is no room at all for complacency: this will not be a market that rewards passive capital.”
2. Three Key Shifts Shaping Vietnam's Property Market in 2026
In Vietnam, according to Nguyen Le Dung, Head of Investment Advisory at Savills Hanoi, the market is experiencing three key shifts: rising interest rate pressure, a mismatch between credit and capital flows, and significant changes in the legal framework.
From an interest rate perspective, elevated VND borrowing costs are encouraging both buyers and investors to adopt a more cautious and long-term approach. At the same time, credit has become more selective as banks rebalance liquidity, requiring developers to strengthen capital structures and improve transparency.
Ms Dung noted:
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The market is entering a clearer filtering phase, where financial capacity and disciplined project execution are becoming critical to maintaining investor confidence, particularly among institutional capital.
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On the regulatory side, the new land pricing framework may increase development costs. However, alongside procedural reforms and a long-term planning orientation, it also lays the foundation for larger, more structured developments.
Meanwhile, supply continues to shift towards suburban areas and satellite cities, contributing to greater price segmentation and improving the market's ability to meet genuine housing demand.
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