some movements in makati

2009-02-04T13:26:00.000-08:00

There still seems to be movement in the Makati condo market. I just got a call from my long time client who works at the ADB. She wants to buy in Salcedo village for her use. A 3 bedroom unit with a minimum of 180 square meters. On the other end of the spectrum I have another client who wants a house in Belair, but he thinks that prices are inflated, and we should see how the crisis pans out in this country (Philippines), particularly in the central business district of Makati.

Word from different sources in the real estate community state that the percentage of overseas contract workers purchasing real estate has gone down by around 10% in the 4th quarter 2008. It may go even lower as things develop. End users are still buying or renting because they act according to need. Only a visible online presence with efficient and competent followup service will capture this narrow market.

In the village rental markets, it has been noted that a number of expatriates have been pre-terminating their leases and going home. This obviously is the backlash from several multinationals downsizing and laying off employees. I am still observing movements and how strong this pressure will affect prices; how fast prices can get pushed down. I do have a couple of people waiting in the wings to grab a high quality single detached home in Forbes park or Dasmarinas village lower than prevailing prices. They are coming from the large condo units in the Fort Bonifacio Global City area. They decided they want a patch of grass to walk on. If some of you want to submit your listings please email me. I need them by June and July 2009.

Makati Properties; Philippine real estate market prospects

2007-11-14T18:47:00.000-08:00

How's the Makati real estate market doing?

For now the high level housing rental and sale market is falling all over itself on the way up. Pacific Plaza Towers has increased in sale price by 30% in the last 6 months, Essensa has increased by the same amount. Rentals have increased by 20 - 30% too.

For the villages the prevailing per square meter selling rate in Forbes Park is now 70 to 75,000 pesos per square meter, in Dasmarinas Village at 85,000 to 95,000. In Belair and San Lorenzo Village at 50 to 60,000 per square meter.

The projection is for a steady increase for another year. Supported by the Philippines' solid economic fundamentals (better fiscal management, higher tax collections etc.), although the exporters are being hit by a very strong peso, lessening their incomes. The US Dollar woes are buoying the peso to heights it hasn't touched since 7 years ago.

As the US credit market gets dragged down by the subprime mortgage meltdown, one might ask when and how the Philippines might be affected? It seems like our local banks did not expose themselves to the high return/risky investments that were the re-packaged subprime loans, that so many US banks fell for (fell in love with?) as if the US housing boom would go on forever. As all booms go, busts must follow, no matter what the boom. One US housing bust coming up! Anyway, my opinion is that the Philippines will get affected through a dip in portfolio investments from the US and the pull back of expansion plans of US outsourcing companies and other US multinationals, as the credit markets dry up.

All in all, indications are for a good year ahead for the Philippines real estate market. Beyond that we have to see how much we will be affected by the US slump world drag down (sounds like a wrestling match!). For now it is still a good time to buy folks!!

Casa Regent Corporation

some movements in makati

Makati Properties; Philippine real estate market prospects