Philippine Real Estate Market Buoyant Despite Global Crisis

Olivia Olarte
Khaleej Times Online, http://www.khaleejtimes.com
25 September 2009

ABU DHABI — In spite of the global property slump, the Philippine real estate market remains buoyant, with list prices for off-plan properties in that country rising by an annual average of 10 per cent, an industry consultant says.

The Philippine property market remains stable because most of the buyers are end-users or home buyers and not speculators, said Jovy Tuano, Managing Director of Asia Gulf LLC, an Abu Dhabi-based property brokerage and management firm. In contrast to the firm prices there, properties in many neighbouring Asian states have lost value, he said. “The Philippine real estate market has experienced a nominal year-on-year growth of 10 per cent for the last five years, despite recent events affecting the global property market, he said. Tuano, who is also the chairman of the Philippine Business Council, Abu Dhabi, spoke to Khaleej Times ahead of next weekend’s Philippine Property Show, which is being held for the first time in Abu Dhabi.

The first edition of the show, held in Dubai last September, generated around Dh38 million (500 million pesos) in investments. Tuano, the project director for next week’s event, said he was optimistic that the Abu Dhabi show would generate serious buyers too.

“Abu Dhabi has managed to withstand the unfavourable global situation and is stable in terms of economic fundamentals. That is why we’re holding the second edition of the show here.”

According to Tuano, Filipino expatriates comprise 11 per cent of property sales in the country, with Filipinos employed in the Middle East accounting for almost half of that number. But the Philippines has seen an increase in foreign property investors, with some opting to live in the country.

The Philippine law on foreign ownership states that foreigners can wholly own a condominium with the same titles and rights accorded to a Filipino citizen, while those who want to retire in the country can, with a residence visa, fully own a house and lot measuring up to 1,000 square metres. Institutional investors can own up to 40 per cent of a building, Tuano said. At last year’s show, 20 per cent of the buyers were foreigners, the majority of whom were married to Filipinos, plus a few institutional investors. Some Emiratis have also expressed interest in investing in the Philippines.

Buyers at next week’s event can select from condominiums and house and lot projects showcased by major property developers in the Philippines, including Megaworld, SM Development Corporation, AboitizLand, AyalaLand, Alveo, Avida and Hamilo Coast. - olivia@khaleejtimes.ae