The Philippines is witnessing a property boom that analysts believed is underpinned by economic hard facts. The latest data indicates demand is constantly on the rise that home prices are going up, and most notably in the luxury segment. The country’s real estate market, a new report said, is beating out neighbours in the region.
The property sector in the Southeast Asian nation presently stands on firm ground, its robustness further fired up by a national government bent on instituting fiscal discipline and implementing ambitious infrastructure projects, according to Property Report.
In the Philippines now, the indicators of a booming economy are quite apparent. Authorities are rolling out tax reforms, obviously capitalising on the charisma of President Rodrigo Duterte for popular support, and pushing for massive developments to support economic expansion.
There is no denying the national economy is gaining traction more than ever and with the Filipino middle class having more cash to spend, the prevailing mood is to acquire properties.
Consumer spending is up, per the same report, and the trend was manifested by the increase in the take up of pre-sold condominium units in Metro Manila, jumping by 24 percent. It was no accident that the home buying spree happened in the immediate aftermath of Filipino migrant workers remitting over $28 billion at the end of 2017.
The government too is planning to inject more cash into the economy. Duterte intends to make good on his promise to improve the country’s existing infrastructure. Economists said the colossal building up will see the spending of an estimated $168 billion.
And the Filipino leader’s efforts appear to be paying off. By the end of 2017, the GDP grew by 6.7 percent while consumer spending showed a hike of 6.1 percent, proving that the general economic activity is steadily climbing.
Unsurprisingly, investors have been impressed so far, resulting to foreign direct investments (FDIs) of more than $2 billion, which Property Report said was reported by the government last October 2017.
Best Time To Invest
All these indicators point to one thing – now is the best time to invest, specifically in the property sector. Home prices are on the upward trend in the metropolis, showcased by the per square metre pricing in the central business district at $6500. Analysts said such trend is likely to be replicated in the residential segment.
In addition, investors get a solid assurance from industry experts that as it stands today the Philippines is outpacing the rest in Asia in terms of gross rental yields. As pointed out in the report: “Manila today is the Hong Kong and Singapore of 30 years ago … (and) property developments in the Philippines are currently well placed to thrive.”