PH Property Market Update: Luxury Real Estate Seen To Sustain Growth In 2019
Seen to be driven by a projected economic growth rate of 6 percent this 2019, analysts said the property market in the Philippines will continue on its growth trajectory. Demands for luxury residences like condominium units will remain high, fuelled by the influx of expat workers and the burgeoning number of young local professionals.
Specifically, there will be “robust demand for residential condominiums and dormitories this year,” the Business World reported.
The increase, according to the publication, will be triggered chiefly by the ongoing expansion in the offshore gaming industry. Foreign employees, mostly coming from China, will require more housing units as the so-called Philippine Offshore Gaming Operators (POGO) are expected to experience sustained growth.
In addition, the country, among the most economically stable in Southeast Asia, now boasts of a constantly growing line of young professionals who can afford to rent or buy properties within or near the central business districts (CBD). Mainly, these workers are part of the business process outsourcing (BPO) sector that has experienced growth over the years with no or little sign of slowing down.
Nowhere To Go But Up
Analysts are convinced property developers will make available more residential units over the next 12 months, likely to be encouraged by the rising demands coming from the POGO and BPO industries.
Real estate and investment firm Colliers International is projecting of “a more aggressive launch of worker dormitory projects,” in the metropolis and nearby sub-urban areas. The company said more condominiums and dormitories will rise in major CBDs such as Makati, Ortigas, Fort Bonifacio and the Manila Bay Area.
Colliers added that offshore gaming in the Philippines will continue to expand, meaning more foreign workers will come in and consequently drive up the demand for real estate where these POGOs will be based. Online gaming operations will soon ramp up in the provinces of Cebu, Batangas and Pampanga, and there areas’ property sectors are sure to reap the long-term benefits.
The South Luzon region is likewise to join the growth circle due to its proximity to Metro Manila. Many workers from the capital will seek to acquire properties south of the city for their regular getaway during the holiday breaks, the report indicated.
Demand For High-End Living
Colliers also noted of “sustained demand from affluent Filipinos, foreign investors and offshore gambling firms,” for luxury condominium units, indicating too that the market appears steady on its path for explosive growth.
Posh condominiums tend to draw in buyers and investors alike thanks to the local market’s “relatively low prices and attractive rental yields,” the investment firm said.
It came as no surprise that “the pent-up demand encourages mid-income condominium developers to scale up and construct high-end projects in emerging business districts such as the Manila Bay Area,” the research note from Colliers added.
Further boosting the confidence of investors is the bright prospects for the national economy. In a report, The Philippines Star said the “economy will maintain a growth rate of over six percent through 2019,” and the boom anchored largely on the government’s thrust to modernise infrastructure facilities.
The program is seen to open the gates of massive investment inflows, somehow giving the assurance of the Philippines enjoying a sustainable growth pace, the national daily added.
