With the global economy fluctuating, fueled with fears of a recession, more investors are turning to real estate in the Philippines for its resilience. If you want to get the most out of the Philippines market, you need to learn to spot and ride market trends before becoming apparent to everybody. The post-pandemic recovery could see significant changes to the real estate market globally.
Before you leap into real estate investment in the Philippines, consider the following numbers, you might want to ask yourself.
Demand for Affordable, Liveable Space
Even the elusive business opportunities in the rental space will not be spared as everything gets back to normal. Given the current situation, more people are looking for affordable, liveable space away from the Metro Manila CBD. This shift is powered by a population looking to gain more indoor and outdoor space. The result could push the Philippines’ residential property market to become two-tiered. While the preference change will do nothing to dethrone the Metro Manila CBD, it will surely lose steam.
At the same time, other parts of the country are experiencing a boom. As most of the population spent days inside the house, the search for homes for a living, working, entertaining, educational space, and more is on. While not necessarily connected, the Philippines house average prices tell tales of vulnerabilities in the market.
In the Makati CBD area, 3-bedroom luxury condominium units experienced a price hike of just 0.87%, minuscule. The data collected during 2019 showed house prices per square meter rise to PHP 232,000 (US$ 4,488). Further study by Colliers International reveals a sharp slowdown on an year-to-year increase of 15.55% in 2018. In fact, the performance exhibited here is the weakest since 2009.
A Significant Shift
One of the biggest decisions people face in their lifetime is deciding the house to rent or buy. Getting this decision done right makes up for one of the little misfire people regret for a long time. Most people choose to seek guidance to make the right call. For that, expert counsel from AXE Real Estate, for instance, could set you up to take advantage of the shift back and forth from homeownership to renting.
As the Philippines returns to normalcy, organizations could reduce dependency on single headquartered workspaces. One thing to keep an eye on is how the building environment impacts the occupants’ productivity, health, and well-being. Slowly but surely, consumers and end-user will gravitate towards designs and constructions that improve overall health.
Over the next one to three years, property buying is expected to slow down in the Philippines and the World over, as buyers take up a ‘wait and see’ approach. Economic growth could slow to an eight-year low, primarily because of delayed implementation of the 2019 national budget and soft global markets from the US-China trade war. Real estate in the Philippine is still below pre-Asian Crisis values. However, the market could be sustained by the need for flexibility, pushing more people to rentals.
Andrea Parker is a reporter for Zobuz. She previously worked at Huffington Post and Vanity Fair. Andrea is based in NYC and covers issues affecting her city. In addition to her severe coffee addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.