With a population that exceeds 20 million, Manila is one of the largest urban areas in the world. It’s to the point where real estate agents in Manila are familiar with only specific areas rather than the entire city.
Ideally, real estate agents will bring in-depth market knowledge to the table. They can provide insight on up-and-coming neighborhoods along with price trends.
This type of info is crucial for making informed decisions, especially as a foreign buyer who is unfamiliar with the local market.
Another advantage of having an agent by your side is their ability to handle paperwork, legal requirements, and land titles in the Philippines.
Buying property in the Philippines involves various documents, from sales contracts to land titles. A good realtor will ensure paperwork is completed accurately and submitted on time, thus reducing your risk of any delays or legal issues.
When searching for a real estate agent in the Philippines, it’s essential to verify their credentials. Agents must be licensed by the Professional Regulation Commission (PRC) and work under a licensed broker.
It’s rather straightforward to check whether a realtor in the Philippines is licensed or not. You can simply check an agent’s license on the official PRC website to determine if they’re legit.
A licensed realtor in the Philippines should listen to your needs and work diligently to find the best options. They should also keep you updated throughout the process and remain available to answer any questions you may have.
When working with an agent, clear communication is often key. Make sure to convey your requirements, budget, and timeline upfront.
Don’t hesitate to ask potential agents about their experience and track record either The Philippines’ top realtors are generally responsive and transparent in their dealings.
It’s also wise to choose an agent who specializes in the type of property you’re interested in, whether it’s a condo in Manila or a beachfront villa in Cebu.
Finally, asking from trusted sources, such as friends or previous clients, are always a good starting point if you’re seeking a decent Philippines property company.
Risks of Real Estate Agents in the Philippines
While real estate agents can make the buying process much smoother, it’s important to remember that they are ultimately working for a commission.
Some agents may prioritize closing a deal over finding the best fit for you. That’s why it’s crucial to do your own research and not rely solely on an agent’s advice.
One way to ensure you’re getting unbiased information is to work with a buyer’s agent. Unlike listing agents who represent the seller, a buyer’s agent works exclusively for you and has your best interests in mind.
Yet unlike in the western world, there isn’t really such concept of a separate buyer agent and seller agent in the Philippines. There’s normally one single realtor who takes a sales commission off the entire deal.
They can help you evaluate properties objectively and negotiate the best price on your behalf.
Another option is to use online resources to supplement your agent’s advice. Websites like Lamudi and RealEstate.ph provide a wealth of information on properties for sale, market trends, and neighborhood guides.
By combining your own research with a realtor’s expertise, you can make more informed decisions.
Should You Hire a Philippines Realtor?
To conclude: working with a real estate agent often helps the process, especially if you’re a foreign buyer who is unfamiliar with the local market.
Remember also that estate agents in the Philippines are not investment experts. They’re simply responsible for listing properties for sale by those who approach their agency, and upon finding a buyer, taking a commission on the deal.
By building communication with a real estate company, doing your own due diligence, and staying involved in the process, you can maximize the perks of having a professional involved in your property search.
With the right agent by your side, investing in the Philippines can be a rewarding and enjoyable experience.
And who knows – you may find a perfect slice of paradise in this beautiful archipelago!
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Robinsons Land—the real estate arm of the billionaire Gokongwei family’s JG Summit—plans to inject 25 billion pesos ($442 million) of properties into unit RL Commercial REIT (RCR) as improved contributions from its shopping malls and hotels helped boost the developer’s profits to record levels in 2023.
RL Commercial REIT raised about 8.5 billion pesos from the sale of 1.72 billion shares at 4.92 pesos each to help fund the acquisition of the properties, Robinsons Land said in a statement on Friday.
Under the plan, Robinsons Land said it will transfer office buildings, shopping malls, hotels and warehouses into RL Commercial this year, boosting the REIT’s total gross leasable area by about 60%. RL Commercial’s portfolio consists of 16 prime commercial assets across the Philippines with gross leasable space of 480,000 square meters.
“Being the majority shareholder of RCR, Robinsons Land shall continuously fuel the growth of RCR by infusing yield-accretive and high-quality assets that will complement the predominantly office portfolio of RCR in order to maximize both Robinsons Land and RCR shareholder value,” Lance Gokongwei, chairman, president and CEO of Robinsons Land, said in the statement.
Robinsons Land—one the country’s biggest developers—said last month net profit in 2023 climbed 24% to an all-time high of 12 billion pesos, fueled by the success of uts shopping malls and hotels. The company owns 1.6 million square meters of shopping mall space, 270,000 square meters of offices, 227,000 square meters of logistics facilities and 26 hotels with more than 4,200 rooms.
Its parent JG Summit also has interests in airlines, food and beverage, banking, petrochemicals and utilities. The business was founded by the late billionaire John Gokongwei in 1954 as a corn starch factory. After Gokongwei passed away in 2019, his six children—Lance, Robina, Lisa, Faith, Hope and Marcia—inherited his fortune. The siblings had a combined net worth of $3 billion, placing them at No. 7 on the list of the Philippines’ 50 Richest when it was last published in August last year.
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Boracay is the most popular resort area to live in the Philippines, and outside the major cities, is one of the most expensive places to buy real estate.
Taxes, Fees, and Other Costs
When budgeting for a home in the Philippines, there are some additional fees and taxes to keep in mind.
First, you’ll have to pay taxes when buying any type of real estate. A transfer tax of 0.5% paid on the sale price when transferring property title. There’s also a documentary Stamp tax of 1.5% on the sale price.
Most important, there’s an Annual Real Property Tax of 1% (provinces) or 2% (cities). This is payable every year.
On top of that, you’ll need to pay condo management fees. This is also due on an annual basis, and the exact cost will depend on the nature of your condo building.
• Notary Fees for processing documents.
• Capital Gains Tax on profits if reselling.
• Broker’s commission if using a real estate agent.
It’s important to keep in mind that, unlike some other countries in Asia, there are ongoing financial obligations when buying a house in the Philippines. Taxes and condo fees don’t end after you’ve bought the property itself!
On top of that, you’ll have to account for occasional repairs. Water leakage is particularly common during monsoon season, and is simply part of living in Southeast Asia.
New Housing vs. Resale Property
One option to consider is having a home built from scratch on a purchased lot. Likewise, pre-selling by developers is common for new projects.
While building a custom house means higher upfront costs, buyers can get more features and space for their budget compared to buying existing resale properties.
Working with a decent property developer in the Philippines is key, and finding qualified contractors to handle construction is also crucial.
Let’s face it: finding a reputable builder is difficult in developed nations, let alone in the Philippines. Be sure to carefully review all building standards and quality to avoid issues down the road.
Ideally, any real estate company you choose should have completed dozens of successful projects in the past.
We don’t suggest building a house in the Philippines if you aren’t already living here and familiar with both construction and the local real estate market though. It’s not the sort of thing you’d ever want to manage from the other side of the world.
For most people, it’ll be much easier to buy from either a property developer or through the existing resale market. The cost savings simply aren’t worth the risk.
The Philippines is home to a large variety of developers. With a large company, you can be reasonably assured of the build quality when compared to a random general contractor.
If you’re buying a resale property in the Philippines, here’s a full summary of the process:
• Connect with a real estate broker familiar with your target locations.
• Find a property for sale, make an offer, and negotiate the purchase price.
• Sign a reservation agreement and provide an earnest deposit.
• Hire a lawyer to review documents and represent you.
• Sign a deed of sale once terms are finalized.
• Transfer the title and register at the Registry of Deeds.
The Cost of Philippines Property Varies
To summarize, Philippines house prices vary substantially based on exact location, size, type, and amenities.
If you’re buying in the city, your specific neighborhood and proximity to mass transit are important factors.
Similarly, out on the islands, you’ll pay much larger amounts for property located near the beachfront. Each city has its own unique market dynamics.
Researching the pricing structure, home costs in the Philippines, and differences between new build versus resale will help your real estate transaction go smoothly!
On a final note, navigating the sales process smoothly will require an experienced broker and/or attorney, especially if you’re a foreign buyer who isn’t living here.
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From Millennials to multinationals, a new era of property investment unfolds
In the Philippine real estate landscape, a new phenomenon is taking root: ‘revenge investing’. As reported by Colliers Philippines on Business World, this trend is fuelled by young and millennial workforces alongside affluent investors. Unlike the earlier trends of revenge spending and travel observed in 2022 and 2023, revenge investing showcases a robust inclination towards property acquisition, driven by both personal use and investment opportunities.
Yet, this wave of investments is not only confined to residential purposes. Many young buyers are considering these properties as potential sources of passive income, attracted by the blend of lifestyle features such as live-work-play-shop environments and the proximity to public infrastructure. Colliers Philippines foresees this trend persisting, especially considering the limited investment options in the country, with a keen eye on properties offering strong rental prospects and appreciation potential.
The Philippine economy’s resilience is a cornerstone of this real estate surge. Despite global challenges, such as soaring commodity prices and geopolitical headwinds, the nation stands as one of Asia’s fastest-growing economies. This growth is underpinned by strong macroeconomic fundamentals, notably resilient personal consumption, and private investments.
Complementing this domestic growth, the Philippines is attracting considerable foreign direct investments (FDIs). As per the Philippines News Agency, from January to October 2023, the country saw net FDIs amounting to USD6.5 billion, with significant contributions in manufacturing, real estate, and financial sectors. These investments primarily originated from Germany, Japan, Singapore, and the United States. HSBC Economist Aris Dacanay attributes this influx to the administration’s investor-friendly policies, particularly those encouraging foreign ownership in real estate projects.
Leading industry players who have earned their recognitions at the PropertyGuru Philippines Property Awards gala in 2023, namely Best Developer Robinsons Land; Best Industrial Developer Aboitiz InfraCapital Economic Estates; and Best Mixed Use Developer Federal Land, Inc. reflect the dynamism and potential of the Philippine real estate market, demonstrating how both local and international forces are shaping its future.
The real estate market’s evolution is further evidenced in the branded residences sector, as noted in the C9 Hotelworks Branded Residences Market Review Philippines report. Metro Manila, accounting for 43 percent of upcoming projects, is a key player in this segment, expected to expand by 62 percent with over 2,300 new units. This growth mirrors broader lifestyle changes post-pandemic, with developers increasingly focusing on smaller, more efficient unit sizes and mixed-use developments. This strategy appeals to consumers seeking premium branded products at various price points.
Amidst this burgeoning market, Mr. Jaime A. Cura, Vice-Chairman of The RGV Group of Companies and a member of the PropertyGuru Philippines Property Awards Judging Panel, offers valuable insights for new investors. He suggests riding the trends that favour liberalisation towards foreign investments, particularly in science-based and technology-driven sectors. This approach would facilitate entry into competitive business sectors and stimulate growth.
He also advised to “take part in the development of globally-oriented tourism destinations that require modern facilities and amenities to attract visits to Philippine home-grown and indigenous cultural and ecological attractions, as well as emerging major agri-tourism showcases. Particular areas of interest are hospitality, leisure, and gaming.”
Investing in large corporate groups involved in agricultural development is another strategy he proposes. These corporations are working towards national food sufficiency and affordability, creating opportunities for investments in large-scale farming infrastructure.
Finally, he encourages playing the securities market, specifically in real estate investment trusts (REITs), company stocks, sector-focused mutual funds, and mortgage-backed securities (MBS).
Mr. Cura also notes the impact of international economic shifts, like China’s economic slowdown, which has dampened local developers’ enthusiasm for Chinese investments. Conversely, the economic upturn in India and Japan’s stabilising economy are creating new opportunities for real estate investments in the country.
All in all, the Philippine real estate market is undergoing a transformation, driven by a unique mix of domestic enthusiasm and global economic trends. From young millennials making savvy investment choices to foreign investors looking for promising opportunities, the sector is bustling with activity and potential, positioning the Philippines as a key player in the global real estate arena.
Know any award-worthy residential, commercial, or industrial projects in the archipelago? Nominate them for the 12th annual PropertyGuru Philippines Property Awards on or before 14 June 2024. To know more, visit AsiaPropertyAwards.com/Award/Philippines/.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
For PropertyGuru’s news roundup, Japan is the top cross-border commercial property investment target for 2024. In other news, Vietnamese living abroad but buying domestic property, while Manila was the fastest-appreciating luxury real estate market in 2023.
Japan is top cross-border commercial property investment target in 2024
According to CBRE’s 2024 Asia Pacific Investor Intentions Survey featured in The World Property Journal, Japan is the top target for cross-border real estate investment in Asia Pacific for the fifth consecutive year, with investors focusing on Tokyo, Osaka, and other major regional cities.
Singapore and Australia closely follow as attractive destinations for investment, as investors are drawn to developed, transparent, and liquid markets. India is the preferred emerging market in Asia Pacific, with Mumbai and Delhi capturing the interest of long-term investors seeking to expand their real estate exposure in the world’s fastest-growing economy.
Investors in the Asia Pacific region are maintaining consistent plans to acquire real estate compared to last year, with high-net-worth and private investors expected to be the most active buyers, followed by institutional investors. Notably, investors in Australia, Singapore, and Hong Kong SAR display the strongest intentions to sell.
Overseas Vietnamese snap up domestic property
Foreign Vietnamese are spending big on apartments and land in Vietnam, which they consider as good investment assets compared to prices in developed markets, according to a report by VnExpress.
Harry Nguyen from Australia bought a 100-square-meter apartment in Da Nang City last December for just over VND3 billion ($122,000), which he said was a “sound” investment.
“The same apartment would have cost me around $1.5 million in Hong Kong, $400,000 in Australia, and $300,000 in the Philippines,” he said, adding that he could either live in the property or lease it for around VND30 million a month.
Manila led the world in luxury home price growth in 2023
Manila overtook Dubai as the fastest-appreciating luxury real estate market last year, according to the residential installment of Knight Frank’s Wealth Report, released Wednesday and reported in Mansion Global.
Considered the most densely populated city in the world, the capital of the Philippines recorded annual price gains of 26.3% across its high-end market in 2023, the most of any of the 100 markets analyzed by the real estate firm and property consultant.
With price growth of 16%, Dubai, which ranked No. 1 in the prior edition of the report, slipped to second place; and the Bahamas, having logged price gains of 15% last year, came in third place. The Algarve, in Portugal, and Cape Town, South Africa, both of which saw prices jump 12.3%, rounded out the top five.
The Property Report editors wrote this article. For more information, email: [email protected].
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