The Philippines property market is currently one of the hottest in the world. Affected worst by the Asia economic crisis, since Asia began to grow again the Philippines is fast becoming the commercial hub of south East Asia. Its low starting point has also made Philippines property a hot favourite with investors.
The massive growth potential of Philippines property is fuelled by the level of new businesses and foreign investment the Philippines, especially Manila is attracting. Philippines property is expected to grow in value by no less than 24% for the next five years and possibly even more in the next 2-3 years.
Investment Property in the Philippines
Philippines property considered worthy for investment purposes, is currently mainly in Manila. Philippines investment property with the most potential is off-plan apartment complexes, high rise towers in Manila's financial and business centres.
Philippines property like that is attracting rental yields of 10% already, and that figure is expected to climb in the coming years. Because of its massive growth potential, Philippines property was number one for short-term investment in the David Stanley Redfern research department's top ten.
Our Philippines property is a three tower development of apartments in Manila's main financial district, Makati. As Philippines property goes, the Atrium towers have found the perfect balance between luxury and affordability. Their low price makes them a favourite with investors hoping to capitalise on the huge growth potential of Philippines property
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Construction costs in the Philippines are expected to increase by more than 35 percent this year due to record oil, steel, cement and global shipping prices on the back of US Dollar devaluation.
Nearly all construction materials used in the development of Philippine high-rise buildings are imported. With the strong depreciation of the US Dollar value in the South-East Asia combined with record high oil prices that may see crude hit 150/160 USD per barrel in July and August 2008, construction materials exported from China, Korea, Malaysia and Taiwan, together with their shipping costs, continue to increase in price at a phenomenal rate as exporters of steel reinforcement bars, electrical wirings, aluminium, copper based components and Portland cement in the region are set for upwards of 40/50 percent price increases.
Developers of the Lancaster The Atrium Towers in Manila stated they would increase prices of apartments by 10 percent, effective July 16 2008, but clients who reserve now through can take advantage of current prices and see an immediate return on their investment. Not to mention obtaining 70% interest free non status finance.
This is the perfect opportunity to get into a hot market as Philippines property is expected to grow in value by no less than 24 percent for the next five years and possibly even more in the next 2-3 years.
Philippines GDP has been rising by over 5 percent year-on-year and Manila has fast become a major S.E Asian trading post and is no competing against Bangkok as the commercial gateway to the East.
And despite the high prices of foreign imports such as oil hitting the economic growth is expected to slow between 5.2-6.2 percent this year - property prices in the Philippines are being kept buoyant by a huge housing backlog, low interest rates, friendly payment terms, higher incomes of workers in the growing outsourcing industry, and a rising expatriate population.
The housing backlog of 3.8 million units, in particular, has left 70 percent of the country's estimated 90 million population without their own home. This is the big difference between now, and the property boom before the Asian crisis of 1997-98. The demand for housing is not speculative; it is not investor driven; but rather end-user demand driven; a specific demand that is being addressed.
And despite the rising costs, construction continues to boom across much of the country, especially in Manila, a mostly low-rise city where dozens of residential towers are beginning to dot the skyline; at least 38,000 new apartments will be available by 2013 in the Makati financial district and in nearby Bonifacio Global City alone.
It is in Makati that The Lancaster the Atrium Towers are situated, in the heart of the central business district. Off plan prices per m2 in this district have grown by 40% in the last 24 months and the promises higher than average yields of around 12 percent.
But by buying through the overseas property specialists, David Stanley Redfern, investors now have the chance to see a return of 10 percent capital appreciation in just a few days.
Find out more about Philippines property.
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