Every Overseas Filipino dreamt of having his or her own dream house. As a matter of fact, buying a property is considered one of their first major investment as it is considered the most secured and profitable. Based on recent reports, the Philippine economy is bouncing back from a slowdown induced by the Covid-19 pandemic, and the outlook for the real estate market is significantly improving. Here are some of the top reasons why you should buy the property now
1. Low prices and flexible payment terms
To attract buyers, the real estate developers are offering never-before-seen discounts and flexible payment terms for a limited period.
“Real estate developers are offering never before seen discounts and stretched payment terms. However, as the world starts to open up, we will not see these offerings anymore,” said, Manny Arbues, Regional Head for the Middle East and Africa of Ayala Land International.
“Real estate investment is the most resilient and tangible investment one can have particularly during this time,” Arbues added.
2. Better connectivity: Best for WFH or Online school
Developers are offering spaces to work and better internet connectivity for remote working comfort or attending online school. They are upgrading their services to attract more tenants to their facilities, such as free housekeeping and laundry services, and a stable internet connection.
“Internet connectivity has improved because of the higher demand and need for a better-quality signal. Most homes are now connected to FIBR wifi systems,” said Charyna Francisco, Sales Activation Head of Federal Land, Inc.
3. Bounce back in economy
The country’s economy maintained its growth momentum in the first three months of 2022 as it expanded by 8.3 per cent, beating forecasts.
“The Philippine residential real estate segment will experience a rebound in 2022, primarily due to the strong domestic consumption brought about by the opening up of businesses due to the easing of restrictions. Q1 2022 GDP posted growth of 8.3 per cent with OF (Overseas Filipino) remittances reaching USD 8.7B, which is 2.3 per cent higher compared to the same period last year,” Arbues, said.
4. Rise in remittances from overseas Filipinos
The rising inflow of remittances from overseas Filipino workers (OFWs) according to Colliers will spur growth in residential demand. Data from the Bangko Sentral ng Pilipinas (BSP) showed remittances in September 2021 reached $2.7 billion (P135 billion), up 5.2 per cent YOY. For 2022, BSP forecasts a 4 per cent growth in remittances.
“The continuous flow of remittances from Filipinos abroad has also increased economic outlook,” Arbues, said.
5. Improvement in market sentiment
The market sentiment is improving and rents are pushing back to their pre-Covid levels as a result of reopening borders, the recovery of the labour market, higher vaccination rates, and return-to-office programs.
According to a report from real estate services company – Colliers Philippines, the recovery of residential prices gathered speed along with the better-than-expected performance of the economy beginning in Q3 2021, encouraging an increase in residential transactions. Property developers are looking to capitalise on the change in the economic outlook.
6. Better road and rail connectivity
Better road and rail connectivity has given buyers more options. Despite the pandemic, the government has developed major roads, railways, airports, and the country’s first subway system, leading to better connectivity between urban and rural areas. This has given buyers more options to look beyond the metro also.
“The launch of new bridges, including the Skyway 3, has helped speed up travel from Northern Luzon to Southern Metro Manila,” said, Charyna Francisco.
7. Improvement in residential condominium leasing
Residential condominium leasing has also seen a slight improvement with a 2 per cent decrease in vacancy in Metro Manila in Q1 2022, according to a report from Colliers. With more companies increasing their workforce to report on-site more employees will be encouraged to rent a condominium unit or co-living facility close to their offices.
“Rental income is the best passive income for OFWS as there are some ideal options for you to purchase as there are condominiums offered by builders at affordable rates even though they sound luxurious. It comes with perks and we can also go back and relax,” said Macario Bonifacio.
8. Co-living popular option again
Co-living will be a popular option again among employers and their workers in Metro Manila beyond 2022, especially with the return of onsite operations and the metropolis’ traffic reverting to pre-pandemic levels.
Industry experts feel that co-living will be a popular option again among employers and their workers in Metro Manila beyond 2022, especially with the return of onsite operations and the metropolis’ traffic reverting to pre-pandemic levels.
“Co-living is common in the Metro Manila CBDs (Central Business Districts) but not limited to that – emerging markets in the suburbs where IT and BPO businesses proliferate also have co-living setups. Home buying preferences moved from co-living setups to stand-alone homes because of the need for social distancing as a result of the pandemic,” Francisco said.
9. Value of living in own home
The Property Industry like many other industries throughout the world faced challenges during the pandemic like manpower shortages and supply chain issues. The developers adapted to the new normal way of selling, marketing, and promoting their projects and managed to survive the difficult times. People realise the importance of owning a home due to the strict Covid-19 lockdown and Work From Home option. Home preferences are also changing.
“Earlier in the pandemic, when people started working from home, there was a strong preference for house and lot projects outside of Metro Manila, where they could be surrounded by a large expanse of open space. With the ease of restrictions where people are encouraged to go back to the office, people realise all the more the value of living in a master-planned, mixed-use, and integrated estate,” Arbues said.
10. Building compliance against Covid-19
In response to the pandemic, office buildings are being built with characteristics such as improved ventilation systems, sanitation stations, and better natural lighting. Residential apartments are now offering further technological advancements to enable people to work remotely from their homes. The need for safe living, office, commercial, leisure and industrial spaces influences the real estate industry to enable living in the new normal.