DUBAI: The Philippine economy grew by 6.2 % in 2018 and is expected to gather more steam at a faster rate this year at 6.7% as vital indicators create voracious appetite in the property sector.
This at hand, real property thinktank, Colliers International, in its first quarter 2019 report, said “strong demand in the pre-selling market has continued to raise residential prices, with the most expensive condominium project now priced at approximately Php550,000 (USD10,400) per square meter.”
Experts said Overseas Filipino Workers (OFWs) should monitor this closely to have a better grasp on where to invest their money in, especially noting that developers have as well been advised by the real property thinktank to launch more mid-income units, a move very much favorable for OFW investors.
Colliers likewise suggested that property developers – and OFWs for the matter – “cash in on the potential for capital appreciation of condominiums in light of planned rail projects that should improve connectivity,” referring to Metro Manila’s first intercity subway project that will connect Mindanao Avenue in Quezon City to the Ninoy Aquino International Airport in 30 minutes.
The project broke ground on Feb. 27 2019 and is expected to be completed and fully operational in 2025.
Figures
The Philippine Statistics Authority (PSA) has reported that while the economy’s growth last year slightly fell short of the 6.6% average annual growth rate from 2012 to 2017, the country nonetheless stayed the course and is on track to being among the fastest growing economies in region.
According to a BusinessMirror (BM) report, the Philippines’ investment ratings have been upgraded to investment quality by three major financial thinktanks – Moody’s, Standard & Poor’s and Fitch Ratings.
The report added that the country also significantly improved its standings on the Global Competitiveness Index, ranking 47th out of 140 economies in 2015-16, up from 52 in 2014, 59 in 2013, and 65 in 2012.
These quick strong figures in the backdrop have resulted to increased appetite in all three segments of the property sector – residential, office and commercial spaces – which, in turn buoyed optimism.
Colliers International Philippines (CIP) said in an August 2019 report that the current economic climate is conducive for expansion of property projects.
“Developers should seize this opportunity to build more offices in key hubs outside Manila, and acquire land parcels near soon-to-be expanded regional airports,” CIP said in its report.
