The world of real estate is a forever changing industry. Stepping into the big world of real estate means that you have to deal with many factors. The developers and the agents are not the only ones who can manipulate on how the industry is going to run in a year. Thanks to the economic growth of 5.2 % in 2015, the real estate game in the Philippines has never been bolder and better.
Here are the factors that you should definitely watch out for in the Philippine real estate. These factors can help you make sound decisions when it comes to buying or selling property.
1. Economic growth
As mentioned, the economics of the Philippines are at its peak. Investors keep on coming with the promise of outsourcing opportunities. Aside from a great increase in the first quarter, the Philippines enjoyed a 5.8 % increase in the second quarter and a 6% increase in the last quarter.
But how does good economic health reflect in real estate? Economic indicators such as the GDP, employment data, manufacturing activity, and the prices of goods are all indicators on how much properties will fare when they are all listed. Good economy means that more properties are going to be available in more competitive prices.
2. Demographics
Demographics refer to the data that gives you an idea on which type of niche use your services. It can be about race, age, gender, or economic status. Demographics help real estate agents take a peek on the type of people who buy properties and therefore form different strategies to help the lock down a deal. For example, baby boomers, people who are born from 1945 to 1964, are now facing retirement. Some of them are going to look for good retirement homes to invest in.
Another type of demographic is the OFWs. OFWs has one of the biggest buying power in the Philippine economy today. The estimated remittances of the OFWs in 2014 are in 10 million pesos. Real estate agents should be able to find ways to reach out to this demographic.
3. Internet
The power of the internet is a factor that everyone should consider. In just one click, one can reach millions of people, and in the end, generate sales. In 2015, 18% of agents use social media to show off the properties that they are trying to sell. Meanwhile, 59% use online listings such as portals. The internet allows easier access to the audience making the whole buying property experience a whole lot better.
4. Cheap housing
Thanks to socialized housing programs, there are now better opportunities for more Filipinos to receive good housing. There’s SSS and Pag-ibig helping the masses get the property that they want. Through this opportunities, many people are more inclined in buying properties instead of renting them. Tax credits and discounts from the government can push people to get in the talks of real estate.
5. Interest rates
Interest rates are important. They can determine if the person will be able to buy a property or not. When interest rates fall, the cost of buying mortgage decreases, making the property more affordable to the buyer. Fortunately, the Bangko Sentral ng Pilipinas keeps the policy rate at 4%, making more people engaged in buying properties.
Keeping tabs in these trends can help you boost your client list and generate sales. Be up to date with the latest real estate news here at our blog!