Posted by sblb
http://overseaspropertyworld.wordpress.com/
September 26, 2009
The Philippines property market has barely been affected by the downturn, and like most places demand began to pick up again in the second quarter, according to a market report from Colliers International. The company expects residential property prices to fall just 1% in the next 12 months.
The Philippines real estate market is in such good shape, because the economy is continuing to grow, albeit much slower than in previous years. A major contributor to economic growth is a 2.8% year-on-year growth in the year ending May. Worker remittances are responsible for 10% of Philippines’ GDP, so such a growth is great news for the economy.
More importantly the economic growth means that Filipinos are still spending, and this is keeping the retail sector strong. As a result, there are still plenty of foreigners in the country, staff of all the corporations who have set up operations in the low-cost environment the Philippines offers, which is keeping rents buoyant.
Another major factor in the health of the Philippines real estate market going forward is the fact that there is not much in the way of new-supply coming onto the market this year. This means, that, if the growth in sales recorded in Q2 continues, this will keep prices solid and may even bring some growth.
The Philippines property expcoming up in Abu Dhabi next week will be an excellent way to gauge international demand for Philippines property. I for one will be interested to see their sales figures.
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