One prominent real estate expert believes international investors in search of big rewards should consider Philippine mixed-use developments. During an online forum organized by The Manila Times, Sheila Lobien, Lobien Realty Group CEO, noted the potential for high yields in the Philippines makes the market more attractive than both Europe and the US.
“There are a lot of risks but with that risks are also big rewards. If they’ll be able to execute their project and be successful here in the country, then they are expecting a bigger margin here in the Philippines and that’s good news for us in the real estate market and the Philippines also because that will mean jobs in the country,” Lobien explained.
Even with the Philippines experiening once of Southeast Asia’s worst COVID-19 outbreaks, the real estate sector has been busy. Lobien told webinar attendees that her firm has seen a lot of interest from foreign investors who are looking to build mixed-use projects or form joint ventures in the country.
While there haven’t been a lot of project launches in 2020, this is expected to turn around next year once the Philippine economy begins to recover in earnest. Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno wrote an op-ed for the South China Morning Post that explained the country is poised for a strong recovery with the central bank still having a number of tools at its disposal.
Now remains a good time for individual buyers
While overseas developers are looking at Philippine mixed-use developments with an eye on the future, individual property buyers and investors can benefit right now.
“A lot of developers are giving good incentives and better payment terms. So if you want to look at properties now is the best time to canvass and source. Aside from the low interest rates and higher ceiling that the [BSP] has given to the banks, landlords can take loans to start building their projects and Filipinos can start looking for properties that they want to acquire,” Lobien stated.
Meanwhile, it is a buyer’s market for secondary homes with sellers preferring quick liquidity as opposed to longer transaction times. This has created a lot of opportunities for buyers with cash in hand.
“If you have a lot of money, it’s the best time to go on property hunting right now because many owners are willing to unload their assets to be more liquid. There’s always an opportunity in the real estate market,” Lobien concluded.