04/02/2019
WHY INVEST IN THE PHILIPPINES?
The Philippines is an island nation, famous for its friendly community, tropical climate and stunning beaches. Spreading over 7000 islands, between the Pacific Ocean and the South China Sea, it’s also known for an extremely reasonable cost of living, making it an ideal expat destination.
The Metro Manila area, made up of several cities including Manila itself, and the even larger Quezon City (former capital of the Philippines), has a population of nearly 13 million people. Unsurprisingly, many expats find themselves here, especially those moving to the Philippines for work. Another option for expats, is to head south to Davao City. Although this is the third largest city in the Philippines, the population of 1.6 million and relatively large area make it a much less densely populated, and therefore more liveable, place.
If you’re thinking of making the move to the Philippines, whether it be to work, retire or perhaps start a business, then you’ll need to know a bit about how the process of buying a home as an expat will work. Here’s a quick guide.
What’s the property market like in the Philippines?
Like most places, the property market in the Philippines reflects the economy. That means that the turbulent global economy of the last 15 years has caused prices to be fairly volatile. Although prices fell sharply in 2008 and 2009, they've largely been on an upward incline since then - albeit with some peaks and troughs along the way.
What’s more important, perhaps, is to understand how different areas and property types have been performing. Condominium units - popular for city living especially - saw a price rise of 12.9% in the year to Q1 2016. However, some areas of the high end condo market in Manila in particular are showing signs of slowing. Because of this complexity, if you’re considering buying property in the Philippines, it’s crucial to know the market well, and have local help you can trust.
Can foreigners buy property in the Philippines?
Foreigners are subject to some restrictions when it comes to buying property in the Philippines. It’s possible to buy a condo or flat, so long as the block remains at least 60% locally owned, but more difficult to own land. Basically this means that expats can own a building but not the land on which it stands.
There are alternatives if you’re determined to own land, such as buying it via a corporation. However, if you want to explore these routes then you’ll need to take detailed local legal advice.
What’s the approximate cost of different properties in the Philippines?
If you’re thinking of buying a property in the Philippines, the price you pay will be influenced significantly by where you want to live. Metro Manila, for example, includes developments that vary significantly in desirability. The Ortigas Centre and the Rockwell Centre, for example, are a short drive away from each other, but a small condo in the Rockwell Centre will cost almost double that in the Ortigas Centre. Prices in USD given below.
From: Filinvest Property Investment Analyst
cdto: Alliver Revilla
