17/06/2022
Like many other countries in Southeast Asia, the real estate industry in the Philippines is not doing as well as it was before the pandemic. However, experienced investors view it as a buyer's market β meaning the supply far exceeds the demand. For this reason, now might be the perfect time to invest in Philippine properties.
Whether youβre an overseas Filipino worker (OFW) or a foreign investor, you can choose from various property types to match your needs. Some economic and social factors can help you decide if itβs indeed time to buy a property in the Philippines; weβll walk you through them below.
Reasonable Prices
Property prices in some developed Asian countries have skyrocketed thanks to low interest rates, uncertain monetary policies, and uneven wealth distribution. For instance, here are some of the cities with the highest year-on-year home price increase in the region in 2021:
β Beijing: 14.8%
β Singapore: 13.9%
β Osaka: 13.5%
β Tokyo: 12.6%
β Seoul: 12.5%
However, in the Philippines, property prices did not reach record highs over the lockdown period, so investors in these areas can start looking into foreign market investments where they can achieve the best returns.
Better Payment Terms and Discounted Pre-Selling Rates
The largest property developers in the Philippines, including Ayala Land, offer generous payment terms compared to their counterparts in Thailand and Malaysia.
If youβre looking for long-term investments, you can also ask for pre-selling rates. Developers typically offer discounted prices for properties they are yet to build; in most cases, investors wait three to five years before project completion. There is, however, a downside to these deals. Some real estate companies can offer zero down payments and longer terms, but these properties may be subject to construction delays. In such cases, they push back turnover dates.
Nowhere to Go but Up
COVID-19 gave developers around the world distinct financial and logistical challenges. However, experts claim the market in the real estate scene in the Philippines will bounce back stronger in due time. After all, the younger Philippine workforce and less reliance on tourism compared to its Southeast Asian neighbors make the country a more attractive option for medium and long-term investments.
Key Takeaways
As with any investment, these purchases will come with risks. Before buying a residential or commercial property in the Philippines, do your research and examine your financial goals and capabilities first.
However, if you have disposable income that you can use for real estate investments, the Philippines offers many properties that you can benefit from in the long run. Now is the ideal time to invest in property in the Philippines β the industry is on its way to recovery and delivering impressive profits.
Do you need help looking for the best investments for you? Contact our real estate expert Gie Ann Kramer through Messenger or Whatsapp to begin growing your wealth
