Investors, professionals, and families demand more property in Philippines, especially in its central business districts (CBD).
For this year, the Philippines’ inflation rate rose up to a staggering 6.4% in August. Aside from that, the Philippine Peso reached its all-time low after 12 years. Now at PHP 53.53, prices everywhere are continuing to rise.
On the other hand, the World Bank said that the Philippines has a consistent growth in Asia, with its economy at 6.7% year-on-year in 2017. Moreover, the Philippine economy is expected to grow at an annual rate of 6.7% in 2018 and 2019.
Good Rental Yields with Increasing Demand for Condo Units
Colliers International reported that the Philippines property market is still striving. According to Colliers, Philippines’ central business districts leasing of condominiums remain strong, making rental yields stable. A Global Property Guide report said that gross rental yields in Metro Manila are good, with 7.01% rise in rental yields in even the smallest condos (45 sq. m.). High-end condos (80 sq. m.) in areas such as Makati CBD, Ortigas CBD, Rockwell, The Fort, and Eastwood City, on the other hand, have a 7.16% increase.
The Colliers International said that strong demand for new homes come from families as well as foreign and local professionals working in the central business districts in Makati, Manila Bay, Fort Bonifacio, and Rockwell, among others. Because of the blossoming relationship between the Philippines and China, a large number of Chinese investors are also looking for condominium units. Workers employed by offshore gaming companies are also in search for condo units as well. Colliers sees as much as 60,000 take up mark in 2018.
However, the Global Property Guide warned foreign investors not to invest haphazardly in Philippines property. This is because of high transaction taxes and official income tax rates.
More Projects in the Bay Areas
Colliers International further noted that Bay Areas including in Cebu, Pampanga, and Laguna have an increasing demand for high-end properties. They said that developers should look out for housing opportunities here. This is due to the operation of offshore gaming firms in these areas.
As a result, high-end properties in the Philippines will be decentralised resulting in more improvements outside Metro Manila.
Check more of Colliers International analysis on the Philippines’ real estate market here. For more property in Philippines, clickhere.
About Yazhou Property
Yazhou Property is a Property and Lifestyle website. We provide fresh overseas property news, the hottest real estate property for sale, and other helpful tips to aid you in your real estate journey and your overseas property investment.