Nadj Villaver | PropertyFindsAsia.com
The year 2015 has been “a great time for PH property market’” according to National Economic and Development Authority (NEDA). And for the upcoming year, the real estate industry will grow further.
According to Jacqueline van den Ende, Founder and Managing Director of Lamudi Philippines, development will spread outside Metro Manila. As early as 2014 there had been evident real estate development in second-tier cities such as Cebu, Bacolod, Iloilo, Davao, and even cities in Luzon near Metro Manila like Angeles, Santa Rosa, Dasmariñas, Bacoor, etc.
Office real estate will become a viable investment option due to strong demand and low supply. Property developers are already offering strata-titled office developments to address increasing demand for office real estate.
“The old adage “safe as houses” still holds true in real estate, but you have to understand the market thoroughly, know where the demand is, and what the market requires. Rental properties make sense because the landlord builds equity in the property through the monthly rent he or she charges (used to pay off mortgage) and when the loan has been paid in full the majority of the monthly rent can become profit. The property may have also appreciated in value over the course of the mortgage, which will leave the landlord with a more valuable asset. However, the question of whether a property will appreciate in value and by how much depend on several factors, chief of which is location. Hence, it is of extreme importance that the would-be investor chooses his or her location carefully,” van den Ende said.
How to invest: Any would-be real estate investor should choose location very carefully. If one decides to invest in residential properties like rental condos, accessible transportation links and high population for renters should be considered. Student housing or condos in areas with high population of students are also good real estate investment option.
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