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If you’re looking to sell or invest in a property, you might be asking if now is the right time. Here are the factors that affect the market value of your property.
Population Growth, Supply and Demand
By the end of 2019, the Philippines expects a population rise to an estimated 109 million according
to the Commission on Population as reported by Rappler. The workforce is also expected to reach 70 million by December. There is a current influx of Chinese and other foreign workers in the Philippines, which resulted in an outpour in property purchase this year.
Shelter is a basic human need. With a growing population comes the need for residential and business properties to meet the developing demand.
Regardless of the rising rates or inflation, millennials, overseas Filipino workers, and foreign investors will keep buying homes and other properties. The demand may experience its ups and downs but it will not be put into a halt anytime soon.
The Philippines is also named as one of the hottest property markets in Asia by BizNewsAsia. Foreign investors start to notice this. And this, together with the still growing business processing outsourcing (BPOs) and IT industries, is the reason behind the upsurge in real estate investment. Strike the iron while it’s hot. Grab this business opportunity!
Improving Purchasing Power
In April this year, the country’s inflation rate eased down to its slowest phase and this is the sixth consecutive month this happened according to the Philippine Statistics Authority (PSA) as published by Business World Online in May.
Slower inflation rate provides Filipinos with more purchasing power.
Bangko Sentral ng Pilipinas’ Governor Benjamin Diokno said that the Philippines met the target inflation rate of 2% to 4% for 2019 and 2020. And if things turn out accordingly, real estate’s consumer spending may improve as well.
Besides the decline in inflation, the economic growth of the Philippines encouraged expatriates to buy properties of their own. In an ABS-CBN News article in March, Manila was named as the world’s top luxury home market. Yet, the real estate industry in the country is still in its full bloom according to The Manila Standard. What more could happen if the properties become more affordable and attainable again to people?
Interest Rates On Home
The consistent downturn in inflation might be a game changer this year. Meeting the desirable range of inflation rate for the BSP might improve the loan interest banks can offer.
Banks like BPI see stronger demands for housing loans, according to The Philippine Star, since people are starting to have expendable income. They also see housing loan rates to subside soon.
Why Sell Affordable Homes?
Affordable homes in the sea of luxury properties are how you’d stand out from the clutter.
The Philippine market is constantly developing. As population increases so do the working population and the student population.
Students and working adults would need less-expensive housing that will be available for a long period of time. This is a good market to consider especially that most students and workers travel from provinces to cities during the weekdays for school and work.
With the ‘Build Build Build’ program of the government, we are expecting ease in transportation connecting NCR to other cities and provinces. This will provide a wider market reach and accessibility for properties found in these areas too.
2019 is another predicted successful and positive year for the real estate business. It might also be your year to meet more clients and develop and sell more properties.
Expand your network and get moving. Take part in the biggest meet up for buyers, investors, sellers, and property developers this year. Catch Lamudi’s Affordable Housing Fair on July 20 and 21, 2019 at Glorietta Activity Center. Meet potential clients and learn more from the training sessions and marketing seminars from reputable speakers. SMDC is the Premium Sponsor. Major Sponsors are Lancaster New City by ProFriends and Federal Land. DMCI Homes, BPI Family Housing Loan, and Aboitiz Land are Minor Sponsors. The event’s Media Partners are Business World, Business Mirror, Malaya, Inquirer, and Philippine Star.
Visit their website for more details about the Lamudi Housing Fair.
Source: Rappler, BizNewsAsia, Business World Online, The Manila Standard, ABS-CBN online, The Philippine Star
