Thanks to OFWs and retirees, condo market is booming By Ronnel Domingo Philippine Daily Inquirer First Posted 03:14:00 07/25/2008
MANILA, Philippines—Condominium developers plan to build a total of some 40,000 units over the next five years as overseas Filipino workers (OFWs) and retirees are driving up demand for residential property despite market woes elsewhere in the world, a real estate service firm said.
A significant number of OFWs and Filipino retirees from around the world that reside in the Philippines or considering residence here account for the robust sales of midrange properties, saidMike Mabutol, a director at CB Richard Ellis Philippines.
Mabutol, who is in charge of investment properties and capital markets at CBRE, said OFWs had long been a lucrative market for residential properties.
OFWs give priority to “investing their hard-earned income in residential properties,” he said. “Retirees have also ramped up property spending, mostly from life savings and retirement benefits,” he added.
CBRE data show the increasing demand from both markets is pushing developers to build housing and condominium projects in which units cost P1.0-P2.5 million.
The data show 28 residential condominium buildings with a total of 18,000 units are expected to rise this year up to 2013 in Makati City plus 33 condo buildings totaling 11,500 units in the adjacent Fort Bonifacio Global City.
Demand for high-end residential condominiums is also growing, with prices in Makati rising to between P100,000 and P130,000 a square meter this year from P90,000 a sq. m. in 2006, the data also show.
Low interest rates and flexible financing terms—with mortgage rates at 8.5-12.0 percent—have helped boost the residential property sector, CBRE Philippines general manager Trent Frankum said.
The company said another bright prospect for the market was the development and market positioning of retirement villages for expatriate “empty nesters.”
Henry Schumacher, chairman of the International Chamber of Commerce Retirement and Healthcare Coalition, said the group was pushing for identification and evaluation of more locations for retirement villages.
So far, the European Chamber of Commerce of the Philippines has made initial evaluation of potential attractive sites in Cebu province, Nasugbu town in Batangas province, Tagaytay City in Cavite, the province of Laguna, the northern resort city of Baguio, the Clark Freeport north of Manila, the Subic Bay Freeport northwest of Manila, and the northern city of Laoag.
Schumacher said additional sites included Philippine BXT Corp.-Korean Tourism and Retirement project, Cebu Doctors’ University Hospital, Argao Beach Resort, all in Cebu province; Chateau Royale, Imperial Silver Town and the Mor Realty property, all in Nasugbu; Taal View Heights; Makiling Resort and Country Club/Bay Hill Village in Los Bańos, Laguna; Wellness Place in Philam Homes Subdivision in Quezon City; Clark Freeport; Jestra Heights; Punta Terrazas, and Silliman Medical Center.With editing by INQUIRER.net
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