A growing number of Singapore-based buyers and investors are looking at Philippine properties as an alternative to more established overseas destinations like Australia and the UK due to proximity and much lower prices, according to experts.
Another factor is the slew of cooling measures that have hit the residential market in Singapore, placing many restrictions on property investors here.
Speaking to PropertyGuru, Dominic D. Lagrosa, Regional Manager of International Marketing at Robinsons Land, said: “A year ago, most of our buyers in the city-state were Filipinos and they accounted for 90 percent of sales, but now 30 percent are made up of Singaporeans.”
The developer was exhibiting several of its condominium projects in Singapore over the weekend at PropertyGuru’s Philippines Property Show (PPS) at Marina Bay Sands, which saw a steady turnout of visitors, mainly locals and Overseas Filipino Workers (OFWs).
Lagrosa noted that most investors are focusing on the central business districts of Makati and Bonifacio Global City (BGC) due to the prime location close to shopping malls, offices and transport networks. Moreover, residential properties in these two areas offer high rental yields of seven to eight percent and good capital appreciation.
Despite this, there are restrictions on overseas buying in the Philippines. “Foreign ownership is restricted at 40 percent within a residential building and only condominiums can be sold to foreigners as they can’t purchase landed property,” said Lagrosa.
But demand among buyers abroad is not likely to slip anytime soon.
Property values in the country are anchored by strong economic growth, noted consultants. According to a report from Cushman & Wakefield, the Philippine economy is projected to grow 6.6 percent this year, exceeding the average GDP growth of Asia Pacific which is expected to be 5.3 percent.
An analyst who spoke to PropertyGuru but declined to be named, also said there is a wide gap between condo prices in Singapore and the Philippines, with the republic approximately six to seven times more expensive.
Commenting, Lagrosa stated: “In terms of pricing, condominium units in Makati and BGC average around S$330 psf.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email email@example.com