Although it’s difficult to come by property pricing data in the Philippines, industry insiders are reporting a significant upshift in values, particularly at the luxury end of its property markets.
Data from the Bank for International Settlements (BIS) show that capital values of flats and commercial properties in the Makati area of the capital Manila has risen almost 50% per square metre in peso terms from the first quarter of 2008 through to the third quarter of 2014.
Research published by real estate researchers at Colliers International shows that land values in the Makati central business district (CBD) exceeded their 1997 pre-Asian Financial Crisis peak, with residential capital values up 3.4% from the previous quarter and around 5.6% year-on-year. Residential rents increased by an average of 5% year-on-year in the CBD.
The main driver of growth in Philippines’ real estate has been increased investor appetite for its luxury property, both residential and commercial. Competition between high profile brands has been aggressive at the high-end in recent months resulting in a polarised real estate market.
Internationally-known names are increasing their presence in the country: the Azure condominium in Paranaque city, southeast of Manila is offering a beach club house designed by Paris Hilton, while a Trump Tower is going up in Manila’s Makati area.
The latest investment hotspot in the Philippines is idyllic Boracay, named the world’s best island getaway by Travel & Leisure magazine and best Asian Beach Destination by TripAdvisor’s Travellers’ Choice Awards for the last four years.
Residential and hotel design company YOO are behind a sumptuous new development on one of the world’s most pristine beaches in Boracay. The five-star boutique residential resort offers a fantastic opportunity for investors to harness some capital growth on the back of increased investor interest in the Philippines.
The highly-anticipated resort is on schedule to open in 2016 and is already gaining international attention and prestige for its unique, design and breath-taking scenery. Luxury residential units are available from €195,000 to €1.8m with rental yields expected to achieve from 6% to 8% annually.
It’s a great time to invest in the Philippines and Boracay in particular, with the opening of a new airport this year offering 50-minute flights from Manila, 2 hours from Hong Kong and 4 hours from Singapore. An already popular tourist destination particular for Asian visitors, the tiny island is seeing a steady increase in holidaymakers from Europe, the US and the UK.
Source:: Property show rooms