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The world of economics is a dynamic and ever-changing realm, with the real estate sector being particularly susceptible to a myriad of influences. Navigating through the complexities of the real estate market can indeed be a daunting task, especially for those unfamiliar with its intricacies. Despite the challenges that may arise, experts are optimistic about the resilience of the real estate market in the Philippines. Let's take a closer look at the recent developments that have shaped the landscape of real estate in the country over the past few years.
The Philippine real estate market has shown significant changes from 2010 to 2018, including a remarkable 125% increase in home prices in Central Business Districts (CBDs). Despite facing challenges in 2019 and a decline of 13.2% in CBD property values in 2020 due to the impact of COVID-19, the market has started to rebound in 2022, with a notable 54% increase in unit sales compared to the previous year.
The Philippine economy is on the path to improvement, with a growth rate of 7.6% in 2022 and a projected growth of 6% to 7% in 2024, although there are concerns about high inflation affecting interest and mortgage rates.
Graph taken from: https://www.ceicdata.com/en/indicator/philippines/house-prices-growth
In 2022, the residential real estate market in the Philippines experienced a significant 7.7% increase in the national price index, showcasing robust land appreciation. Duplex residences saw a notable price surge of 42.9%. Condominium prices faced a slight decline of 4.9% in Q4 2022. Despite these fluctuations, the demand for housing, particularly condos, remained strong, leading to a noteworthy 12.9% price increase throughout 2023.
Preselling projects are a popular way for investors to take advantage of this real estate boom in the market, and one thing we learned is that their growth potential is huge and we’ve also taken notice.
In the rental market of Metro Manila in 2022, there was a 3.9% increase after two years of decline. Pasig City boasted the lowest residential vacancy rate at 5.6%, while Taguig and Makati had the highest rates. Despite varying vacancy levels in different areas, the real estate market in the Philippines has consistently shown positive price growth, a variety of development activities, and modest rent increases.
The market has encountered numerous challenges over time, particularly with the global impact of the pandemic. However, there is a noticeable improvement in the current scenario, indicating a positive outlook for the future. This resilience displayed by the Philippines presents promising opportunities moving forward.
If you need help in finding those opportunities, then it's time to consult with Presello.
Sources:
https://www.globalpropertyguide.com/asia/philippines/price-history
https://ownpropertyabroad.com/philippines/real-estate-market-in-the-philippines/
https://www.ceicdata.com/en/indicator/philippines/house-prices-growth
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