The Philippines is a country that has never been optimistic about. In the hearts of many people, it is the third world that is completely ignored and despised. However, the rapid development of in recent years has made it become a sweet pastry in the eyes of international investors. As the real estate market that people are most concerned about, has frequently shown excellent "results"!
According to PhilStar Philippine Star, real estate prices in Metro Manila, the Philippines, recorded the largest increase in more than three years in the third quarter of 2019! This is mainly because the cost of buying apartments, duplexes, and single-family villas and townhouses has risen sharply, especially in the National Capital Region (NCR).
The Central Bank of the Philippines (BSP) reported last weekend that the residential real estate price index (RREPI) has achieved superior double-digit growth. Z1z rose from 116.6 in the same period last year to a record 128.7 in the third quarter of this year, an overall increase of as high as 10.4%.
At the same time, the Central Bank also stated: “This is the highest growth rate since the first quarter of 2016.” In the past few years, due to the influx of employees from Philippine offshore gaming operators (POGO), the current There is a huge demand for residential units, especially apartments.
RREPI is an indicator used to assess the state of the Philippines’ real estate and credit markets. Since the first quarter of 2016, BSP has been publishing this report. The index is also 9.5% higher than the 117.5 recorded in the second quarter of this year.
Similarly, RREPI is also based on the housing loan data provided by General Bank, Commercial Bank and Savings Bank to finally measure the average price change of various types of housing.
According to data, the price of apartment units soared by 29.1%, the highest increase since the first quarter of 2019, , and rose to a record 178.9 in the third quarter compared with 138.6 in the same period last year.
was followed by the price of duplex houses, which rose 24.8% from 115.5 to 144.2, the price of townhouses rose 6% from 127.7 to 135.4, and the price of independent villas or attached houses rose 2.4% from 103.6 to 106.1. The
BSP report said: “The real estate prices of all types of housing units in Metro Manila have risen significantly.” The
report shows that the prices of residential properties in NCR and AONCR have increased significantly compared with last year.
Compared with the same period last year, NCR's average residential price in the third quarter of 2019 rose 22.2% to 154.4% from 126.4%, while AONCR rose 4.9% to 115.9% from 110.5%.
In the NCR area, the price increase of apartments and duplex units exceeds the price of independent villas and townhouses. At the same time, the prices of all types of houses in AONCR have also increased.
Statistics show that in the third quarter of 2019, 74% of residential real estate loans (RREL) were used to purchase new houses.
Classified by housing type, 51.8% of residential property loans were used to purchase apartments , followed by independent villas, accounting for 38.1%, while townhouses accounted for only 9.5%. It is not difficult to see that due to the extreme scarcity of land resources and the rigid demand for housing improvement, the current housing demand in the Philippines is still dominated by apartments!
If divided by region, most of the loans issued by NCR are also used to purchase apartments, accounting for 43.1% of . The AONCR area is dominated by single-family villa loans, accounting for 35.5% of the total.
In addition, according to the latest statistics of JLL, one of the world's five largest real estate agencies, a professional real estate research organization. The real estate market in Metro Manila, the Philippines also performed exceptionally well throughout 2019, leading the wayThe Asia-Pacific region surpasses well-known real estate investment destinations such as Hong Kong, Thailand, Shanghai, Beijing, and Singapore. The annual increase of is as high as 20.7%!
Data source: JLL Jones Lang LaSalle's
This achievement is due to the strong population base of the Philippines and the recent development and infrastructure upgrades of the country as a whole. The local people's rigid demand for future land and housing has also been strengthened with the increase in economic income!
Authoritative institutions are generally optimistic about the Philippine real estate market
Not only that, more professional authorities have stated that they are generally optimistic about the Philippine market in the real estate market in the next few years.
Source: Business World
Colliers International, another authoritative professional organization in the world's five largest real estate firms, stated in the latest report that due to the economic growth brought by the current Philippine President Duterte during his term, therefore predicts the next 12 years. By 36 months, the real estate market will continue to perform clearly . Colliers International predicts that in the next two years, with the improvement of the Philippines' overall credit rating, the decline in inflation rate and the higher ranking shown by global competitiveness, it will be able to promote and maintain the country's overall economic growth.
No unique coincidence, Lord Andrew Hay, head of the global housing department of Knight Frank, a global real estate consulting firm, mentioned after returning from a business investigation in the Philippines that if has $200 million available for emerging markets For real estate investment, I will choose to start from Metro Manila, Philippines! Because the number of ultra-high net worth individuals (UHNWI) in the Philippines is expected to grow by 38% in the next five years to 2023! The rapid development brought about by , one of the main industrial structures, Business Outsourcing Service (BPO), will enhance the residential and office market in Metro Manila!
Lord Andrew Hay, Head of Global Housing Department
As an important political, economic, cultural, and entertainment center of the Philippines, Metro Manila performed well in the real estate market in 2019, which undoubtedly gave doubters a beautiful counterattack. The Philippines is still able to maintain a relatively stable growth rate and development in the current overall weak global economy. This is bound to become the center of gravity that global investment institutions and individuals will dump.
Therefore, regardless of the overall economy or the real estate industry, the future Metro Manila is still a hot spot for investment and a golden area.
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