We’ve just entered the last month of the first quarter of 2023. At this point, people are still feeling their way through the year, still mulling over potentially life-changing decisions, as in whether to buy property or set that plan aside for the next year or so.
With the country’s economy finishing 2022 on a high note, defying the odds and growing by 7.6%, the fastest in about 46 years, these questions become even more burning: Should we invest? Specifically, should we invest in real estate? Or should we hold back and buy some more time before taking on the real estate investing plunge?
To help us decide on whether to invest in real estate or not, Colliers, a leading diversified professional services and investment management company, held a forum last Feb. 22 at 8 Rockwell in Makati City. Entitled Resilient Investments, the two experts who each gave a talk discussed 2023 forecasts and property value appreciation.
A “slow, gradual recovery” but an improvement nonetheless
The first speaker, Joey Bondoc, the company’s associate director for research, said that last year’s economic growth tends to have a positive impact on key segments, including property. Despite this bright spot, however, there are factors tempering the country’s road to full recovery post-pandemic such as inflation.
Bondoc tried to allay anxieties in terms of property acquisition as he said that “overall, we have been seeing a pretty good interest still for the acquisition of properties of land across Metro Manila.” As an example, he gave the recent transaction price of about P1.19 million per square meter in Makati.
“[In] Makati, Ortigas, and Bonifacio, there has been a growth of 5% in terms of land value. This should result in more developments across the capital.”
Still on land values, the BA Economics graduate from UP Pampanga emphasized that one segment that is shown to hike property values is the improvement of infrastructure, like “big ticket” projects of the previous administration, including the MRT and LRT expansion and the Mega Manila Subway project. “These projects will likely be completed between 2023 to 2030. Just imagine the impact on land values, property values, [and] property prices that these projects will have once they're completed,” he enthused.
“Definitely we're seeing some recovery … slow, gradual recovery, but nevertheless, an improvement compared to what we saw in 2020 and 2021. This will probably hinge on the economic expansion of the Philippines projected to grow by about six to seven percent by 2023,” he added.
Lastly, Bondoc mentioned that developers providing attractive, flexible payment terms have also been key in increased demand. Facilities and amenities only make the prospects more attractive. “During our webinars, we would have these informal surveys, and more than 80% of our respondents said that they prefer condo units that offer green, open spaces, some areas within their condos where they can work from home or where their children can study. These are some of the trends we’ve been seeing.”
Residential properties: less volatile and has rental growth, capital appreciation
The second speaker, Richard Raymundo, Colliers managing director, discussed why one should consider investing in residential properties now that the country is recovering from the COVID-19 years.
“First, there's less volatility with residential property as compared to other investment options. Second, you're going to see some rental growth. Philippine apartments have risen by around four or five percent since 2008 and then there's capital appreciation as well. On the average, we're close to around 10 percent per annum… You're going to see some rental yield of around four percent and growth in the property price at around six percent, roughly around where we're at.”
This, said Raymundo, makes investing in residential properties safe and high yield. He reminded, though, that “again, capital appreciation as with any asset, [like] property, can go up and down, it is an investment property.”
For those looking to finally invest in real estate, the BS Business Economics alumnus of UP Diliman outlined three considerations when looking for a residential property to invest in.
First, he said, one should consider the location, making sure that the property is in the right location for you. For rental prospects, one should look for strong rental and high occupancy.
The second consideration should be the developer’s track record. “Make sure that the developer that you're buying from will finish the project in the quality that they promised,” he emphasized.
Lastly, Raymundo said that prospective investors should consider the price: “One should buy the best one can afford without compromising the other two considerations.”
Value and convenience of a condo with the privacy of an intimate community
For those looking to invest in the north of Metro Manila, 8 Benitez Suites by Rockwell Land is a low-density condo development on C. Benitez Street, Quezon City, with two buildings having only six floors each. The property provides the value and convenience of condominiums, but with the privacy and security of a more intimate community.
Since its 2020 launch, 8 Benitez Suites’ property values have grown by almost 20 %, with its average price per square meter growing from Php 255k to Php 305k.
Apart from high quality finishes that cater to a luxury market, 8 Benitez Suites also provides after-sales service with its own property management plus leasing and secondary sales teams. This is a standard among Rockwell properties, and provides further assurance for investors in maintaining their assets.
For more information, you may visit 8 Benitez Suites’ official website.