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OVERSEAS
Filipinos and retirees remain the most active buyers of
residential property in the Philippines despite the
sluggish economic environment prevailing, and their
spending has kept a train of industry-linked enterprises
going, according to an official of an international
real-estate services company.
In a
presentation to delegates in the recent Asia-Pacific
Marketing Power and Sales Effectiveness property and
marketing conference in Macau, Mike Mabutol, director
for investment properties and capital markets at CB
Richard Ellis Philippines, said overseas Filipino
workers and retirees have been consistently a lucrative
market for residential properties because of their plan
to provide a higher quality of life for their families.
“This
trend started four or five years ago and now we see
these retired buyers becoming more active in the
market,” said Mabutol, who compared the domestic
real-estate business to the sector’s dismal performance
in other parts of the world, in particular the US after
the subprime meltdown.
To
address this increasing demand, real-estate developers
have introduced affordable housing developments and
condominium projects, with investments ranging from P1
million to P2.5 million, according to a CBRE Philippines
report.
In the
period 2008 to 2013, at least 28 residential
condominiums are expected to rise in Makati City,
providing more than 18,000 units. In Fort Bonifacio, 33
residential condominiums are expected to be completed
between 2008 and 2013, which will provide more than
11,500 higher-end units.
High-end
residential condominiums are also in demand and, as a
result, prices for these units in Makati City have risen
to P100,000 to P130,000 per square meter this year from
P90,000 in 2006.
Contributing to the expansion of the industry are the
low interest rates and flexible financing terms granted
by developers and banks. CBRE Philippines general
manager Trent Frankum said mortgage rates are hovering
at a range of 8.5 percent to 12 percent.
CBRE
noted the development of retirement villages for
expatriate “empty nesters” are also a great potential
for the country’s residential market. Studies show that
retirees from the US, Europe and Asian countries such as
China, South Korea and Japan have chosen tropical
countries like the Philippines for their retirement.
“The
retirement market is a potential multibillion-dollar
industry, and the Philippines has stepped up efforts to
entice foreign and local investments in such projects,”
said Mabutol.
The
Philippine Retirement Authority, a government-owned and
-controlled corporation, and the Philippine Retirement
Institute are the main state arm tasked with encouraging
local and foreign investors to take a stake in
retirement community projects. |
