The residential real estate market in the Philippines will record an average of 10.3% growth in real terms between 2018 and 2016, according to a BMI Research report.
It cited continually strong home prices in 2017, particularly in Metro Manila and the National Capital Region, as the reason for the forecast growth. This would also drive more interest from investors to engage in private property ventures, according to Property Survey.
BMI Research expects the overall property market in the country to be among the fastest growing in Southeast Asia, with a 9.8% annual average growth by 2026 due to more public and private investments. The non-residential sector will also benefit from more investor activity with an 8.4% forecast growth.
For public initiatives, the government’s plan to resolve a 5.7 million housing backlog through affordable housing will contribute to the residential sector’s growth, according to the report. Despite the Philippine central bank’s likely increase of benchmark interest rates by the end of 2018, this will not significantly affect the housing market over the long term amid “strong market fundamentals” and a shortage of homes, the report noted.
For home buyers, the expected growth could likely mean nothing if they are unable to find properties that fit their budget. If you want to live in Makati, which is the most expensive city, be prepared to pay P209.6 million, according to Lamudi. This price represented the average listing value of a home in 2016 in the country’s business and financial center.
Those who are unable to find affordable homes, even outside Makati, should consider nearby provinces such as Cavite. Some of the properties include the Lancaster New City. A review online helps property agents and interested buyers to compare prices against other mixed-use developments in the province.
We have yet to see whether or not the housing market will be favorable to buyers and investors, although the BMI report showed some optimism.