The Philippines’ real estate industry has been consistently robust over the past decade. But with the COVID-19 crisis, the housing market is projected to slow down as potential home buyers tend to take a “wait-and-see” approach.
In the second quarter of 2019, the country’s gross domestic product growth was pegged at 5.5%, the slowest in four years. Yet despite the decline, the Philippines remains one of the fastest rising economies in Asia because of its growing young population, expanding middle-income class, and increasing urbanization.
Along with this promising trend is the shift in the residential property market, where the focus has moved away from the Metro Manila area. As such, the rest of the country has emerged to be a major player. According to Colliers, property firms should seize the opportunity by developing industrial estates in alternative hubs like Bataan, Bulacan, and Pampanga.
Homebuying price points
When deciding to own a property, Filipino home buyers are ready to spend around P1.5 to P3 million. Meanwhile, those who are budget-conscious consider options within the P450,000–P1.5 million bracket. Interestingly, 14% prefer more expensive units that cost over P3 million up to P20 million.
Remittances fuel real estate investment
According to the World Bank, 60% of remittances from overseas Filipino workers go to the real estate sector, with their families investing in the residential property market. In particular, they put their money into housing projects in mid-scale subdivisions in areas near Metro Manila, such as Cavite, Batangas, and Laguna.
As a potential real estate investor, it’s crucial to keep track of the figures and trends in the industry, as they can guide you in making an informed decision. The infographic below presents some property investing statistics you should know before buying a property.