Manila ranked worst property investment site in Asia


Foreign investors looking to invest in real estate-related businesses have ranked Manila as their last choice among various key cities in the Asia-Pacific.

According to the Emerging Trends in Real Estate Asia Pacific 2011 survey conducted by the Urban Land Institute (ULI), global real estate investors gave Manila a score of 4.56 points out of a possible 9, placing the city a few points below “fair” and somewhere within the realms of “abysmal.”

Topping the survey was Singapore with a score of 5.96 points, followed by Shanghai with 5.87, Mumbai with 5.79, and Hong Kong with 5.70.

In an interview with the Inquirer, ULI global trustee and South Asia chairman Simon Treacy said the Philippines, in general, was suffering from a negative image, prompting investors in publicly listed real estate firms to bypass the country when deciding on where to allocate their funds.

“Manila is at the bottom of the pack because the Philippines hasn’t gone to the next level. The country’s image hasn’t really improved. Even with the new administration, there’s still a negative perception of the country,” Treacy said.

“The Philippines rarely ranks when it comes to investment allocations. Since the Philippines doesn’t get a lot of airplay, its real estate prospects become undervalued. Marketing is very important, on a national level, because not a lot of real estate investors look to the Philippines when deciding where to put their capital,” Teacy added.

One of the ways to attract real estate capital here, he said, was to put in place a viable real estate investment trust (REIT) environment.—Abigail L. Ho

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  • Don Sia

    The headlines in sweden today:

    1. Forecast for GDP growth has been slashed to 1.3 percent in 2012, warning that the reality could be worse – look who’s talking

    2. Beleaugered Saab Automobile to undergo reconstruction, an application which was previously rejected by a lower court. – Who needs to get its act together?

    3.’Missing’ toddler fools Swedish police. – hilarious

    4. ‘Leffe the moose man’ promises elk intimacy – disgusting

    This is what you should do

    1. Go back home.
    2. Solve your problems.
    3. Then we talk

    I’m happy to live here in tropical Philippines.

    • Anonymous

      Don, Mabuhay ka for your trust in the Phillippine economy & real estate..way to go!
      Many of my friends & family lost their pants big time in real estate in Florida, Cal & Vegas..ex, hse in Vegas that cost $370T in ’05 now $120T.  Glad I bought real estate here in PI since the value is more stable and even went up at least 50% in the last 5 years..

      For you swede elk..go home, we dont need your kind here..

  • Don Sia

    As an ordinary consumer, I’m happy real estate here is undervalued. I’m not willing to pay more for real estate. Neither are the millions like me. I’m enjoying more for my money’s worth.

    We have enough OFWs who want to buy land here. I am very bullish about the prospects of the Philippine economy and that the Philippines can make it.

    Many large contractors are doing great here in the Philippines and it’s good that foreign investors are not sharing the pie. I am a local contractor myself.

    For me, carry on Pinoys!

  • Anonymous

    ULISouthAsia, The private sector in the Philippines is what spurs government on with, as you say, “getting its act together.” You have just answered what I was talking about in that institutional investors outside of the Philippines may not be thinking to invest in real estate here BUT it is private investment, both here and abroad, and both local and foreign,that drives the real estate sector. 
    ULI would serve its intended purpose better if the sample that you take includes individual investor sentiments, not just institutional funds.

  • Anonymous

    If Simon Treacy of ULI is talking about institutional investors, I agree with his statements to a certain extent. However, he does not factor in the 3-4 million backlog in housing. Also, individual foreign investors are buying up condos locally at almost the same rate as OFWs. Developers like Century, ALI, DMCI, and SOC Land are all showing good sales based on foreign individual buyers and OFWs equally. Maybe ULI has an ulterior motive in taking this stance? Like, say, re-directing focus on countries that they are partial to? 

    • Anonymous

      I spend most ULI time in Manila working with private and public sector so I am actually a big supporter because the Philippines has so much to offer and it can get its act together! See my other entry which indirectly responds to your other comments. Cheer, ST

  • Anonymous

    The Philippines could be the most sought real state property if:
    1.We have disciplines to clean our environment and be mindful where we throw away our trash.
    2.Not trashing our country by making a dumpsite of other nation:
       a. from used clothing and used household goods & appliances.
       b. from taking and buying cheap leftovers on food supplies from manufacturers from other countries after the cream of the crop was shipped to the first world.  
       c.  from used and polluting unwanted junk vehicles from every car producing nation.
    3.We stop making projects that creates more eye soar rather than beautification.
    4.Curve out corruption in our politics and govt.
    5.Improve our water and sewer system, roads, and electricity.
    6.Cut out the red tape in the Business sector for foreign and local investor.
    7.Stop the bad and despicable habit of using the streets and walls as comfort rooms.
    8.Clean the air and all kinds of pollution around the metropolitan.  
    9. Stop overcrowding our cities with squatters and move them to decent homes.
    10.Improve our system of driving to conform with international standard.
    11. Conform with the norms of fuel prices according to the price of oil per barrel on the world market.
    12.Improve the safety, cleanliness and services in our international and domestic airports.  
    13. Let’s all go back how the true Filipino hospitality and friendliness was truly like once before.
    14.Improve the peace and order and curve out terrorism through out the nation. Peace of mind is essential for foreigners entering our soil.
    There’s just so much work to do to improve our image internationally that we’ve let it gone astray, neglected and has forgotten. It’s time to get it all back together.

    • Anonymous

      Well said, I agree

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