The property market in the Philippines appears to be headed further up north, thought to be spurred in large part by the continuous increase in tourism activities, the consistent inflow of offshore investments and the national government’s massive infrastructure projects. New reports indicated that the luxury real estate segment will see significant upticks this 2019.
Specifically in Metro Manila, premium residences will remain in high demand over the next 12 months while in Metro Cebu the outlook for the local property sector is projected to pick up remarkable gains.
“The province of Cebu in the Philippine is set to gain some windfall from the completion of major infrastructure projects,” according to Property Report, adding the main island’s neighbouring cities of Mactan and Mandaue will get a big slice of the market uptick.
Boom Time For Cebu
Widely considered as the country’s second metropolis, Cebu will reap the benefits of the ramped up infrastructure push by the central government, which led to the completion of the following projects – the expansion undertaken on the Mactan-Cebu International Airport, the Cebu Cordova Expressway Link, the Cebu Bus Rapid Transit (BRT) and the Cebu-Negros bridge.
These undertakings will inevitably encourage tourism in great numbers and in turn kick up property development activities.
There will be “a more aggressive approach in exploring parcels of developable land in Cebu,” in the current year, per the same report, citing the latest market update issued by property consultancy firm Colliers Philippines.
And with more visitors coming in, Cebu will witness rising demands in hotels and serviced apartments, which Colliers said convince real estate developers to “build more residential projects that are leisure and lifestyle-oriented in anticipation of the increased interest brought about by the infrastructure improvements.”
Likewise, it’s highly likely that offshore gaming companies, which have been driving up demands for residential units in Manila, will see Cebu as an alternative base of operations, the consultancy added, suggesting too that such a scenario will provide the province a wider latitude for growth.
Manila’s Premium Attractions
The same forecast applies in the Philippine capital, which Colliers said is looking on a solid year for the real estate industry. Particularly, luxury condominiums will attract more buyers in 2019 due to steady demands coming from affluent locals, foreign investors and offshore gaming operators.
Over the past few years, this sector of property buyers made for a stable level of sales performance in the luxury residences segment. The report from Colliers stated that these buyers/investors turn their attention on property assets in the Philippines purportedly for their “attractive rental yields.”
Acquiring properties in the country, which is among the best performing economies in Southeast Asia, has been relatively cheap and buying up will soon deliver the expected dividends. Colliers said the price of luxury residences in the capital is estimated to reach $7600 per sqm soon.