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Will overseas Filipinos stir up buying frenzy this Christmas?

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ANALYSTS differ in their observation that overseas Filipinos will buy condo units this season.

Overseas Filipinos have been seen by some property analysts to take the Christmas break opportunity to view model units and make purchasing decisions this Christmas. However, other analysts disagree with this observation.

Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, said the holidays are actually a wonderful time to scout for real estate deals.

“Interest rates are at an all-time low, and inventory is plentiful; December and January home sales contribute significantly to the country’s total annual home sales,” Soriano quipped.

He added that outside of December and January, traditional peak months are March, April, May, September, October and November, contributing around 10 to 12 percent of the annual home sales.

Soriano said: “First-time homebuyers and OFWs are the primary drivers for home sales. Marketing campaigns during the holiday months center around these twin markets.”

He added, “The Subdivision and Housing Developers for one, is organizing a Housing Fair this December, as many prospective buyers are expected to (make reservations), having their Christmas bonuses and remittances from overseas Filipinos to spend.”

No upward trend in years

Colliers International’s Julius Guevara, associate director, valuation and advisory services and head of consultancy and research, said: “Overseas Filipino workers significantly contribute to the real estate boom in the country. And they do make purchase decisions while on Christmas vacation, since they can view model units with their families and get their opinions.”

He added, however, that Colliers had been monitoring the preselling condominium market on a quarterly basis for the past few years, and the data for the past three years do not consistently show an upward trend during the 4th quarter.

Guevara said: “In fact, sales during the fourth quarter of 2011 was lower than the 3rd quarter, so the Christmas season cannot be a guarantee for increased sales velocities. Keep in mind that most families have other expenditures during the Christmas season, which compete with a housing purchase, so they may forego that purchase for a later time.

“Real estate companies that have strong marketing presence in places that are visited by families during the holidays (such as malls or tourist destinations) would typically benefit from the arrival of foreign-based Filipinos.”

On the other hand, for the ready-for-occupancy market, some buyers purchase their new homes before the Christmas season so that they can spend the holidays in their new residences, Guevara noted.

Colliers International’s Karlo Pobre, research analyst, consultancy and valuation services, agrees with Guevara’s observations.

Same observation

“In 2010 and 2011, the take-up for preselling condos didn’t really build up toward the end of the year, but was rather varied per quarter. The volume of takeup has still been relatively a function of the number of launches (in whichever period of the year). Thus, the more launches, the better the takeup (at least for the last two years),” Pobre explained.

CB Richard Ellis Philippines said in a statement that actual statistics of properties sold during the fourth quarter are not monitored separately from the first three quarters.

“Two factors, though, may be deemed contributory to such increases (if there are any): 1) increase in money supply due to bonuses, etc.; and 2) the season in itself, properties may be considered as gifts, particularly to the wealthy who can purchase in cash. The increased liquidity insofar as the mid-market is concerned, allows the buyer the opportunity to raise the lump requirement (i.e. down payment) to initiate the purchase transactions.”

CBRE said that decisions for purchasing a property from the perspective of an OFW usually take a considerably longer time and are not driven superficially by a special season like Christmas. OFWs’ contributions during the fourth quarter are significant in terms of consumer spending (e.g. shopping, leisure activities), as the workers make the most of the time spent during the vacation with their respective families.

Pobre stressed: “Considering that some of the major developers have initiated sales and marketing arms overseas, this has already established grounds for interested OFW buyers to virtually look in to properties in the Philippines. Together with the growing presence of international brokers and with the help of the Internet, sales can now be facilitated anytime of the year.”


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  • Ncarreonjr

    There will be no overseas Filipino buying frenzy. Just the writer’s/sellers wild imagination. People
    are barely surviving everywhere.

  • OFWdonotbuy

    Huwag kayong padaya sa mga sales pitch ng mga developer…SAkit ng ulo ang haharapin nyo, mga mandadaya sila pati na ang mga walang isang salitang mga sales consultant. Bumili na lang kayo pag may cash kayong pambayad at bumili sa secondary market para kita at alam nyo ang binibili ninyo di katulad ng pre selling, they will promise you the moon pero pag gawa na palpak ang unit nyo, bukod sa tinipid na, very poor ang quality. Hay, pinas talaga, talamak ang corruption sa lahat ng level di lamang sa gobyerno, kahit saan panay lokohan.

  • http://profile.yahoo.com/LUHEGTEQVPMLUVGCH64YGZ5QJM Jury

    This time maybe good season to scout and acquire real estate properties, as explained here in this article. However, its no frenzy for the more common commodities as value of the foreign currencies are plummeting. For our family, it has to be an austere season as the foreign currency i’m earning lost 2 pesos in value.

  • UrHONOR

    HIGIT na risonable at maganda ang townhouses kaysa Condo na nakikitira ka lamang sa isang malaking grupo ng kung sino-sinong mga hindi mo kakilala na maaaring maraming may toyo at sayad.  Sa townhouse, bukod sa may sarili kang lupang natatamnan na kahit papaano, solo mo ang lugar at iilan lang kayo sa isang project, di tulad ng condo na bukod sa nasabi na ng iba sa tumataas na condo fees na hindi mo napipiho kung saan dinadala ng management, ang quality ng service ay walang kasiguraduhan.  At mapipilitan kang makitira sa building na kasama ang mga hayop ng ibang may-ari ng units. At, dios mio, isang tambak na katutak ang mga condong nagtatayuan na tila wala ng katapusan ang bumibili nito.  KAPAG gumalapak ang bentahan ng condod na sa aking tingin ay hindi na magtatagal, hindi kakayanin ng condo fees ang pagme-maintain ng condo buildings kung ito  ay hindi nabantang lahat….yong mga nakabili ang siyang gagastos ng wan to sawa sa lahat ng pangangailangan ng building maintenance.  Ang papeles ng condo ay mahirap sisirin dahil dadaan pa ito sa condo assn na kadalasan ay de kahon kung gumalaw.  Generally, kung nagbebenta ka ng unit na ayaw mo na, ang hirap makakita ng buyer.  Sa townhouses, mas madali ang transaction at…..madaling makita kung ang titulo ay malinis at hindi naka-kompormiso tulad ng condo.  Pag-isipan ng mabuti bago bumili. 

  • scconcern

    To condo/property buyers, watch out for the condo/association fee, it escalate every year.
    This condo/property fee can put you bankrupt…more so if retiry.
    Buy property without condo or association fee….
    For those retiring in PInas you are better of to rent. Cheap and no problem in disposal.

  • http://profile.yahoo.com/74DX67S5U6H557SPUXS5XZ6QJI Alisto Juan

    Real property pag malaki na ang saving tapos depende yan sa laki ng sueldo basta unahin muna ang pagkain at mga kinakailangan. 

  • RobertoMagtuytoy

    A stronger peso means a weaker OFW.  

    • OFW28

      I don’t agree, just work extra hour to compensate the peso appreciation.

      • CesarAzar

        Huwag mo kaming lokohin.  Mga OFWs boycott sa remittance.

      • OFW28

        kaw lang mag-isa, mag x-mas na panahon para magpadala ng maraming dollars sa pinas, kaw din walang pera family mo sa pasko, kaya mo ba un na tutunganga sila! ulolz!!!

      • CesarAzar

        He! he! he! Sanay kami sa walang pera kaya nag-abroad para kumita.  

        Huwag kang magagalit kung hindi ka makabinta dahil mataas ang purchasing power ng peso. Huwag mo ibaon sa utang ang mga OFW.

        Mga OFWs nanawagan ako uli.  Boycott muna sa remittance.

      • sigena

        sino naman na co. malugi sa overtime mo maski hindi kailangan.

    • http://profile.yahoo.com/LUHEGTEQVPMLUVGCH64YGZ5QJM Jury

      kaya dapat dahan dahan lng muna sa remittance. kapag araw ng pagpapadala, nahahalata ko na bumababa talaga halaga ng foreign currency..

      kng pwede nga lng i-boycott pero wala nman kakainin pamilya natin sa pinas

  • http://pulse.yahoo.com/_3JIY54555DDM5VNUNL3G6CIUEI Redhot

    Sorry to say… but many of us OFWs prefer to spend our hard earned dollars abroad to get a better value for our money.  We don’t mind the appreciation of the Peso if it really helps the economy and lower the prices of goods and services, but what’s happening is the opposite!!! 

  • CesarAzar

    It’ not a right time to buy because of the increase purchasing power of Peso and the unit is very very expensive. Don’t make fools the OFWs.  Boycott muna sa remittances.  

    • OFW28

      Sige boycott kang mag-isa mo, padala mo ung dollars mo pag 1:35 na ang palitan, di kaba nakakaramdam na mag-appreciate na yan hanggang sa term ni Pnoy! yan ang policy ng BSP ngayon, kaya habang nasa php40 pa ang palitan magpadala kana, ulolz!!! 

      • CesarAzar

        Huwag mo kaming lukohin mga OFWs.  Pinaghirapan namin ang kita namin dito. 

        Boycott sa remittance.

      • OFW28

        Boycott kang mag-isa mo ulolz! kung kaya ng family mo, maski naghirap ka dyan sa kinita mo, ipapadala mo rin yan sa ayaw at gusto mo kasi OFW ka lang naman eh na gaya ko hindi PR or immigrants! ulolz!!!

      • CesarAzar

        Ulolz ka rin!!!   Mga OFWs boycott muna sa remittance. Huwag kayong magpaloko sa condo na yan.

  • zombie77

    ONLY  those OFWs who have stayed abroad  for  a long period of time (at least 15 years or more) could afford a downpayment or purchase housing/condo units there.



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