Outlook for Philippine Real Estate in 2011
Happy new year folks! Indeed, 2010 was a strong year for Philippine Real Estate, as buyers continued to invest heavily into properties. This is because there is a real shortage for housing in the Philippine market (unlike in the 1997 Asian crisis where most buyers were just speculators, and hence the bursted housing bubble which dragged down all property prices). This shortage falls mainly on the affordable market, or the masses in short. Again, as stated before, the Philippine population is accelerating at a very fast rate compared to its neighbors (see related article in http://www.realestatephilippinesblog.com/philippine-properties-still-good-bargains/), and so the demand for a primary home increases for us Filipinos.
This trend will likely continue this coming 2011. In fact, according to Jones Lang Lasalle Leechiu, a leading property consultant in the world, the strength in the Philippine Real Estate market will likely last until 2015. It’s no wonder that you will see so many new property ventures all over the place, whether they be Philippine Pre-seling condominiums, vertical subdivisions, office space, and the like. I myself bought 4 affordable-end condos (3 in SMDC, 1 in Eton First Homes) at no downpayment schemes, because I’m very bullish on the Philippine Real Estate market. I plan to have all these condos rented out in the future, making a bedspacer-type of setup so I can self-liquidate these condos and gain a little rental profit at the same time (you can Call/Email me on how you can achieve the same profit with these affordable studios).
So, my advice to you is: don’t be afraid of another property bubble, because this time around, there are a lot of Pinoys out there who NEED a primary home. In fact, if you are a developer, this is the perfect time to be creating new projects! Just remember that you should focus your projects on the masa market (the Filipino masses). If you’re an investor, you should soak up similar projects as well since you have a better chance of getting tenants for your property at also gain capital appreciation on the lots that you’re sitting in (provided you are in a highly prime urbanized area with lots of potential for growth).
Goodluck and Godbless your 2011 Philippine Real Estate journey folks!
We have an unbuilt condo at the Grass Properties, SM North Edsa. The turnover is 12/2012. Im wondering since the current selling price is 2.0 mil PhP, if that is the actual real value.
Need help in obtaining the real value and depreciation…or since irs not built yet, if it has some value.
All Pre-selling projects appreciate over time. You should ask your SM agent to give you the current value of your unit