Philippine property boom continues

by: Homes.com.ph Webmaster | Sep 08, 2013 | 0
 
 improving economy, rapid growth in foreign investment, and a reform-minded government are boosting confidence among house buyers in the Philippines. In the first quarter of 2012, the average price of a luxury 3-bedroom condominium in Makati CBD rose 4.8% to PHP 114,000 (USD 2,727.53) per sq. m. (q-o-q), according to Colliers International, or by 10.68% during the year to Q1 2012 (7.34% when adjusted for inflation).

High-end residential real estate prices are likely to rise by another 9.9% during the next twelve months, according to Colliers.

The highest rents are still in Rockwell Center, with condominium average rentals of PHP 780 (USD 18.66) per sq. m. per month in Q1 2012, up 1.3% on the previous quarter. In Makati’s CBD, a 290-sq. m. unit rental averages PHP 658 (USD 15.74) per sq. m. per month.

Philippines house pricesThis year will see a significant rise in housing stock, with 8,253 units expected added to the Metro Manila supply by end-2012. Condominiums now turning over include the Eton Residences Greenbelt (302 units), Eton Parkview Greenbelt (236 units), and One Pacific Place (240 units).

The real estate market relies on a combination of remittances from overseas Filipinos, and on the dramatic growth of the local business-process outsourcing business:
  • Housing projects and mid-scale subdivisions in Metro Manila and nearby provinces are sustained by remittances.
  • The expanding business-process outsourcing (BPO) industry (primarily call centres), is responsible for growth in higher-end demand .

The growth of the housing market is however held back by several obstacles. The mortgage market is relatively underdeveloped, and most houses are sold for cash or pre-sold. Property buyers also face high transaction costs, corruption and red tape, fake land titles and substandard building practices.


Analysis of Philippines Residential Property Market »

http://www.globalpropertyguide.com/Asia/Philippines

 
 

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