Foreigners flock to PHL for property investments — consultancy firm
Foreigners are flocking to
the Philippines for luxury residential investments amid tightening realty laws
in other Asian countries, property consultancy firm CBRE Philippines said
Wednesday.
Overseas Filipinos and the rising middle-class, on the other hand, continue to fuel demand for housing in the fringe areas of Metro Manila.
“The luxury residential sector will continue to pick up,” said Rick Santos, chairman at CBRE Philippines. “Foreigners are now moving from renters to buyers.”
“New restrictive property tax laws in Hong Kong and Singapore will drive more Asian residential investors to the Philippines,” he added.
While the Philippine Constitution prohibits foreign ownership of land, there is no restriction for foreigners to buy condominium units. Thus, foreign fund managers and retail investors buy luxury units by top developers here for investment purposes.
"Foreigners have opted to invest in branded condominium projects," said Santos. "And so far, they're very happy."
Early this year, Hong Kong and Singapore raised taxes for luxury homeowners and investment properties as part of their campaign against bubble risks stemming from speculative investments in the realty sector.
Investor-friendly tax laws
With tightening restrictions there, foreigners are turning to the Philippines – where tax laws are more investor-friendly and financing is relatively cheap – for secondary properties.
“Number one, it's much cheaper here from a tax perspective and cost. From a financing point of view, it's much more expensive to get financing there,” Santos said.
He noted that the Philippines' real-estate developers continue to benefit from foreign interest in branded developments.
Santos, however, was quick to add that he still doesn't see a bubble arising from such investment flows. “This isn't a bubble. This is sustainable,” he said.
“It is exciting. You will see a lot more money from mainland China, Russia, Europe, Korea and US flowing here,” Santos said.
OFWs and housing backlog
Overseas Filipino workers (OFWs) and middle-income earners support demand for residential products, particularly single-detached homes, in the fringe areas of Metro Manila
“OFWs and middle-income earners to sustain the demand for horizontal residential projects,” said Jan Custodio, CBRE Philippines' senior director for global research and consultancy.
“Economic housing will continue to observe strong take-up with its affordable prices and ample supply in the fringes of the country’s major cities,” he added.
Total housing needs for 2013 can reach 646,128 units, of which 57 percent will come from new households who can afford to own or rent, CBRE data showed. — KBK, GMA News
Overseas Filipinos and the rising middle-class, on the other hand, continue to fuel demand for housing in the fringe areas of Metro Manila.
“The luxury residential sector will continue to pick up,” said Rick Santos, chairman at CBRE Philippines. “Foreigners are now moving from renters to buyers.”
“New restrictive property tax laws in Hong Kong and Singapore will drive more Asian residential investors to the Philippines,” he added.
While the Philippine Constitution prohibits foreign ownership of land, there is no restriction for foreigners to buy condominium units. Thus, foreign fund managers and retail investors buy luxury units by top developers here for investment purposes.
"Foreigners have opted to invest in branded condominium projects," said Santos. "And so far, they're very happy."
Early this year, Hong Kong and Singapore raised taxes for luxury homeowners and investment properties as part of their campaign against bubble risks stemming from speculative investments in the realty sector.
Investor-friendly tax laws
With tightening restrictions there, foreigners are turning to the Philippines – where tax laws are more investor-friendly and financing is relatively cheap – for secondary properties.
“Number one, it's much cheaper here from a tax perspective and cost. From a financing point of view, it's much more expensive to get financing there,” Santos said.
He noted that the Philippines' real-estate developers continue to benefit from foreign interest in branded developments.
Santos, however, was quick to add that he still doesn't see a bubble arising from such investment flows. “This isn't a bubble. This is sustainable,” he said.
“It is exciting. You will see a lot more money from mainland China, Russia, Europe, Korea and US flowing here,” Santos said.
OFWs and housing backlog
Overseas Filipino workers (OFWs) and middle-income earners support demand for residential products, particularly single-detached homes, in the fringe areas of Metro Manila
“OFWs and middle-income earners to sustain the demand for horizontal residential projects,” said Jan Custodio, CBRE Philippines' senior director for global research and consultancy.
“Economic housing will continue to observe strong take-up with its affordable prices and ample supply in the fringes of the country’s major cities,” he added.
Total housing needs for 2013 can reach 646,128 units, of which 57 percent will come from new households who can afford to own or rent, CBRE data showed. — KBK, GMA News
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