Editor: Cheyenne Hollis
Pages 24 – 25, Dot Property Magazine ISSUE 024 Q3 2018
Real estate investment in the Philippines Continues to pick up thanks in large part to the strong performance of the country’s economy. This has carried over to the property market with the Bangko Sentral ng Pilipinas (BSP) reporting that the residential real estate price index rose by 5.7 percent last year. Many overseas investors elected to acquire property in Makati. Known as the financial capital of the Philippines, strong rental demand, and the highest rental rates in the country are appealing to property investors. However, Makati isn’t the only place offering strong returns and outstanding capital appreciation. We’ve compiled a list of four property investment hotspots in the Philippines. Each one offers something unique in addition to holding a great deal of potential. 1) CEBUCebu, along with the rest of Central Visayas, recorded a gross regional domestic product growth rate of 5.1 percent in 2017 after rising by 8.6 percent in 2016, stats from the Philippines Statistics Authority show. This has fuelled a real estate boom in the city. Demand comes from local professionals and business owners, overseas Filipinos, and expatriates with each group having a different preference in regards to property types. And with more workers and tourists arriving at Cebu, the rental market will likely benefit as well.“With the anticipated completion of the new Cebu International Port in Consolacion, buyers can expect higher property and rental prices in the town as well as in the nearby municipalities,” Cebu Real Estate Board Inc.(CEREB) first vice president Eva Miñoza told the Sun-Star Cebu. 2) DAVAODavao City’s property market is on the up. The city boasts convenient transportation links, leading universities, and a competitive business environment that supports the growing economy. It was recently named the fourth safest city in Southeast Asia thanks to a low crime rate and high livability. Additionally, the city has earned the title of“Most Child Friendly” and “Most Peaceful” city in the Philippines. The city is best known for being the hometown of President Rodrigo Duterte, who served as mayor of the city before taking his current role. A new international airport and the Mindanao railway are among the projects he oversaw. This work led to a wave of new real estate development with several of the country’s major homebuilders starting to take note. Quadruple A developer DMCI Homes was one of the first firms to target DavaoCity and their efforts helped them takehome Best Developer Davao City at last year’s Dot Property Philippines Awards. 3) PASIGPasig is morphing into one of Metro Manila’s hippest neighborhoods. It has become an emerging business district with condominiums, office spaces, and entertainment options all readily available. There is a positive vibe around Pasig that residents love. It is now the place many first-time homebuyers look to when searching for a home. Renters are also flocking here. Prices in Pasig are more reasonable than in nearby Makati while rental yields surpassing ten percent are possible at select developments. One condominium, Maven at CapitolCommons, is among the most talked-about residential developments in this part of Metro Manila. It boasts a sunny, fun, and comfortable lifestyle future residents will surely enjoy. The project is in the heart of CapitalCommons and is being designed to cater to the young professional who works and plays in Pasig.4) QUEZON CITYNow could be the ideal time to invest in Quezon City real estate. The area is popular due to its large green spaces and incredible shopping malls. The city is already the most populous in Metro Manila with almost three million people residing here. However, traffic and a lack of public transportation to other parts of Metro Manila are currently preventing Quezon City from reaching its full potential. That could all change in 2019 when the MRTLine 7 starts operating and makes using public transportation a viable option for residents. An easy commute to Pasig and Makati will boost the prospects of the Quezon City real estate market. Demand from both buyers and renters should increase. Investors who make a move now may benefit from lower prices than what will be available in 2019.