PART 2: TOP REAL ESTATE INVESTMENT HOT SPOTS IN THE PHILIPPINES

And it gets more interesting. Check this out:

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Global property platform Lamudi lists the Philippines’ top investment locations

MANILA, 2 OCTOBER 2014: Whether you are a foreign business worker looking to invest in office space in the Philippines, an expat staying in the country for good, or an overseas Filipino worker (OFW) or a local employee seeking to purchase a home for your family, you would find the Philippines a prime location for real estate investment. Boasting stellar growth performance and credit ratings upgrades in recent years, the nation has attracted multinational companies and investors to set up shop in various parts of the country, bringing about the emergence of numerous and thriving economic hot spots.

To guide prospective buyers, leading property portal Lamudi forecasts the top real estate investment locations in the Philippines’ booming property market.

Metro Manila

With the Philippines’ popularity for business process outsourcing (BPO) services and relatively low property prices, it comes as no surprise that the nation’s capital has emerged as the fourth best real estate investment market in Asia this year, outranking Sydney, Singapore, and Beijing.

“Manila is a favorite for the office sector, as it was for residential … Manila also offers the highest prime office yields in Asia, averaging about 10%,” states Urban Land Institute in their Emerging Trends in Real Estate Asia Pacific report.

The business districts of Makati, Bonifacio Global City, and Ortigas prove to be wise commercial investment areas. The land values in these places continue to rise, with Makati enjoying the most appreciation. Investors should also not overlook Quezon City, home to major government offices, renowned universities, and national broadcasting networks.

Cavite, Batangas, and Laguna

It is not just the urban centers of Metro Manila that are seeing new development. With a huge backlog in housing, particularly for the expanding middle class, developers are focusing their attention on suburban areas near the metropolis, like Cavite, Batangas, and Laguna.

Record-high OFW remittances are fueling the demand for low-end to mid-range housing projects in the suburbs. More affordable than their urban counterparts, these residential properties are turning Cavite, Batangas, and Laguna into housing havens.

What is more, cities in Laguna and Cavite are transforming into IT-BPO hubs, while Batangas continues to be a major manufacturing and shipping center.

Baguio City

Every summer brings a surge of tourists to the City of Pines, which ensures strong business for hotels and holiday homes. Home to numerous educational institutions and the Baguio City Economic Zone—a region specially set up for commerce and foreign investment—Baguio has established itself as a thriving center of tourism, education, and business in the Cordilleras.

Cebu City

Not just one of the country’s main shipping ports, Cebu is also in the top retirement destinations in the world. Real estate giants like Megaworld Corp., Rockwell Land, and Ayala Land are flocking to Cebu City where condominium units, especially studio types, quickly sell. The city is also a viable option for the BPO industry, and thanks to its booming tourism, hotel occupancy and resort-community projects are on the rise.

Iloilo City

With its historical churches and beautiful coastlines, Iloilo has long been a popular tourist destination. These days, the city is teeming not just with tourists but IT-BPO firms as well, earning it a spot in the country’s Next Wave Cities list.

Bacolod City

Bacolod is said to be experiencing its best real estate market in over 20 years. Construction is flourishing and property prices have gone up by as much as 50 percent, particularly in the areas near the capitol, thanks to a competitive bidding between Ayala Land and SM Prime Holdings. Recognized as one of the top 100 outsourcing destinations worldwide, Bacolod City has also proven itself as a leading business hub.

Davao City

Ranked as the 87th fastest growing city in the world by the City Mayors Foundation, as well as the 10th Asian City of the Future by the fDi Magazine, Davao City remains the top financial and trade center of Mindanao. With Mount Apo and beautiful Samal Island nearby, Davao proves to be not just a commercial center, but a tourist hot spot as well. Real estate is thriving as major developers like Megaworld Corp. and Ayala Land are putting their stake with multimillion projects.

Home to the leading business, educational, and residential centers in the country, these areas are the best places to be. Ideal for commerce, leisure, and home, they would offer the best returns to your real estate investment.

ENDS

ABOUT LAMUDI

Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing platform is currently available in 28 countries in Asia, the Middle East, Africa and Latin America, with more than 600,000 real estate listings across its global network. The leading real estate marketplace offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online. For more information, please visit www.lamudi.com.ph

Visit Lamudi Philippines on Facebook, Twitter, Google+ and LinkedIn.

Author: Elsie Cansino
PR Manager, Lamudi Philippines
Email: elsie.cansino@lamudi.com.ph
Phone: +63 921 2142887 | +63 927 3313501

CHATTER! 2012 FINANCIAL CLUTTER AND THEN SOME!

“Financial Crisis” “Fiscal Cliff” “Debt Problem”, those are just some of the words that I have redundantly come upon reading MONEY & KIPLINGER’S magazines, newspapers, and downloaded PDF file reports. Apparently, it’s not going away, greediness and over-spending caught up with people and now, most of the Western Hemisphere is in disdain and financial chaos-if I may say, near-Armageddon scenario.

One thing, globalization is a double-edged sword and its reverse edge has left many hurt. Export dependent countries felt the full blow when the western countries finances collapsed. 2012 saw a pendulum swing of power. Asian emerging markets went from the side to front row-centre in the eyes of the international investing community-they are now called “Safe Haves”.

Even the BRIC’s (Brazil, Russia, India, China) are forecasted by the CME Group in its July 25 Market Insights report to experience slow GDP growth by 2013, 5% at that from its 8.1% in 2010 and 6.5% in 2011. This compared to ASEAN’s upswing, with the Philippines 6.4% GDP in Q1 of the year head-spearing all of it.

China, although growing 8.1% this year, is playing devil’s advocate and it would most probably have a taste of its own medicine if it continues to provoke unrest in the South East. Its absurd sea claims, currency-manipulating Yuan and exploding population will play major roles in its inevitable GDP  fall.

On the upside, the Philippines still continue to bloom dynamically despite all the outside noise. OFW remittances have played a great role in juicing up the economy, contributing US$ 15.3 Billion as of last August. Although Tropical Storm Pablo ruined lives and livestock down south, Agriculture still sings to the tune of P956 Billion in the first 9 months of the year, that according to Bureau of Agriculture Statistics’ website.

When the real estate sector looks great, the industrial looks good. Labour is up, inflation is still down 3% and the only thing flat is my rear tire.

Best thing to do now is to put your pesos in real estate stocks. ALI is 64.26% up in its 1-year return, DMCI 38.73% and MEG 68.33%. Ayala Land just announced that it would be spending P60 Billion to develop the next, in the words of Jenylle Tupaz, Alveo Land’s project development head, “premier cultural district” in the country-location: Fort Bonifacio. DMCI still reign supreme in construction-just the other month, I saw a fleet of cement trucks rolling in and out Meralco Avenue in Ortigas, I have to say, it was damn impressive. Megaworld Corparation, Dr. Andrew Tan’s baby boy continues to trail blaze its way in regards to international project sales and entertainment productions via Resorts World.

In terms of Mutual Funds, Sun Life’s Equity is the best bet, rising 15.76% in the Q1. Bonds on the other hand are timidly smiling-offering investors 5.3% interest for its 10-year and 5.906 for its 20-year as of last January, that according to the Bureau of Treasury.

RTB’s have shined shoes lately with its 25-year bond, issued last October 24, dashing 6.125% interest per annum-not bad right?

Time deposits still offer slow and safe casements for your six and seven figure accounts. The top 5 banks are offering an average of 3% 1-YR interest. As what I have learnt when I was mingling with bankers back in the day-these kind of interests are considered bank expenses, so really, don’t expect for these things to go up.

I don’t have a crystal ball nor do I need it to predict the near future. 2013 would be the shining year for almost all investment sector, its been proven that the rise of an economy could be sustained for about 3-5 years max, after that, its back to the analysis table to determine the next 5 years outlook.

No worries, the Mayan Calendar was a fraud! No need to stockpile groceries as the coming year seems to hold-hand with the law of abundance.

Take you pens and barbeques out for my next issue as you will need it. Cheers!

THE TOURISM FUTURE

A few years back, I really didn’t understand how tourism could propel our local and national economy upward. From my point of view back then, tourists are just a temporary source of income; they contribute temporary revenue to which it isn’t much of significance. Times have change and now I can see clearly why our tourism secretary is pushing forward with much passion for the beautification of the name and image of our country to the world.

I could simply compare how tourism could boost our country by looking at Ibiza, a small party island off the coast of mainland Spain. Ibiza is world famous for its gorgeous beaches, all day & night summer partying & massive clubs. People from all over the world flock to this small island to experience a piece of liberated paradise. For each individual arriving at the terminal of that small island, it corresponds to hundreds of individual dollars. The same thing could happen to the Philippines, we are now on the process of converting our country from an agricultural land to a tourism destination. Aside from the natural beauty of our place, artificial venues have started popping up. The CamSur Watersports Complex or CWC in Pili, Camarines Sur have gained the reputation of being the wake boarding capital of Asia. It had contributed to the rise of the province. Of course, Boracay Island, famous for its white sand beaches have long been a tourist destination, Cebu and Palawan going head to head with their own beautiful beaches. At present a new trend is being set, Andrew Tan of Megaworld Corp. is just one of the people taking advantage of the demand for real estate, specifically the housing sector. There is a growing demand from expats and foreigners for retirement houses. With warm weather and laid back atmosphere in the countryside, The Philippines is the best place to settle in the retirement age.

So how can we take advantage of this tourism conversion? Since there are a growing number of foreigners settling in our country, it is high time that you think of a business plan that could cater to the demand of these new settlers. A travel and tours business is best for consideration, catering specifically to foreigners, one could gain an advantage. There will be tons of new business opportunities that would open up in the near future, so you better prepare, take time to think about this niche market and contemplate on how much revenue you could potentially earn. Some beach homes in the provinces have been converted into eco-tourism venues, with little farms and water related activities neatly complementing the sea front scenery. If you have an idle piece of property near the beach or has a great source of running water, now is the great time to start building that eco-resort.

You don’t need to speak in a foreign tongue so succeed in this industry because great hospitality speaks a universal language and makes good use for monetizing purposes! And remember, touring is more fun in the Philippines!