Any fears that international investors would stay away from the Metro Manila property market for a prolonged period have been laid the rest as Chinese buyers are returning. Prior to the COVID-19 outbreak, Chinese real estate investment activity in the Philippines had been significant.
The Philippine tourism industry had seen an increase in arrivals from the mainland over the past few years. Additionally, the country’s flourishing offshore gaming sector employs a significant number of Chinese workers. These two factors helped lead to an increase in Metro Manila property market investment from China.
The familiarity with Metro Manila along with a belief that a rapid economic recovery is on the horizon are among the reasons Chinese investors have been quick to return to city’s property market.
“I will purchase again. Because of the pandemic, we will not consider large quantities. But if there are projects worth of value, we will consider them.” Chinese entrepreneur and Metro Manila real estate investor Hedin Ye explained to the Nikkei Asian Review. “Chinese buyers are optimistic about the Philippine economy.”
Developer Ayala Land reported that Chinese investors made up 41 percent of the company’s overseas sales in Metro Manila with 30 percent coming from the US and five percent of buyers being based in Japan. According to Nikkei Asian Review, international sales volumes for Ayala Land are still down from last year’s totals.
Manila and Beijing partnership leads to investment boom
A thawing of relations between Manila and Beijing that begin in 2017 saw the country embrace Chinese investment via the Belt and Road initiative. Although some of these projects have since been cancelled or postponed, China is still playing a large part in President Rodrigo Duterte’s “Build…Build…Build” infrastructure goals.
According to the Philippine Statistics Authority, China was the second largest foreign investor in the Philippines last year, trailing only Singapore. With relations improved and investment happening, tourism improved, the POGO sector took off and Chinese buyers started actively buying Metro Manila properties.
“I think it’s because of the good relations between the Philippines and China. But it’s also because of a strong property market, the ability to come here and buy property at reasonable price and get attractive yields. I think the fundamentals of the economy and real estate are rock solid,” Santos Knight Frank chairman and CEO Rick Santos told Dot Property.