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Ayala Land Inc.’s top foreign condo purchasers: Chinese nationals and companies

“You have seen what happened in the last two years with the warming of Chinese-Philippine relations. We’re also seeing a lot of Chinese investors buy property,”

The Chinese have acknowledged and realized the value of the Philippines as an investment destination as they comprised of 49.4% of total buyers for Ayala Land Inc’s (ALI) residential condominiums here in the Philippines with its investors coming from mainland China. As per ALI’s 2017 international sales data, this follows after the rekindling of diplomatic ties between the two countries.

According to the Philippine Daily Inquirer, Based on 2017 data from property giant Ayala Land Inc. (ALI), international sales—referring to combined sales take-up by overseas Filipinos and foreigners—grew by 32 percent last year to P41.6 billion. This accounted for 34 percent of the company’s P122-billion sales take-up for the year.

Foreigners accounted for the bulk of 24.5 percent of ALI’s total sales take-up last year compared to the 9.6 percent share of overseas Filipinos.

Of the foreigners who bought residential condominium units from ALI last year, Chinese nationals accounted for 49.4 percent. This was a marked improvement from their share of about 10 percent in 2016, ALI chief financial officer Augusto Bengzon said in a recent press briefing.

This suggested that Chinese investors bought P14.76 billion worth of residential condominium units from ALI last year, equivalent to 12 percent of total sales take-up reported by the company during the period as per the Philippine Daily Inquirer.

ALI president Bernard Vincent Dy said these Chinese buyers—a mix of individuals and corporate entities—were buying across all brands, primarily in Metro Manila and some in Cebu.

“You have seen what happened in the last two years with the warming of Chinese-Philippine relations. We see it in office take-up and also in the tourism numbers. We’re also seeing a lot of Chinese investors buy property,” Dy said.

Foreigners are not allowed to own land in the Philippines but they can own condominium units for as long as the property developer does not sell more than 40 percent of the units in a particular development to foreigners.

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