As 2018 begins to wind down, some experts believe this could finish as a historic year for the Philippine property market. Research from Colliers International found new highs in both real estate supply and demand could be seen in the country before the end of the year.
These potentially record-setting marks come despite rising interest rates and inflation in the Philippines. The domestic economy grew slower in the second quarter of 2018, hitting a three-year low of six percent. However, the country is still the third fastest growing economy in the region, behind only Vietnam and China.
“Amid the slower growth, the property sector remains resilient with major segments such as office, residential and leisure poised for record-high demand and supply in 2018,” a recent report from Colliers International noted.
One reason the Philippine property market, and the residential segment in particular, is predicted to remain stout is due to improved relations between the Philippines and China. Colliers International revealed that rental rates were 30 to 50 percent higher in some residential condo properties in the Bay Area and Makati due to an influx of mainland buyers. International developers could soon join them.
See more: Chinese property investors target the Philippines
“We see greater potential for partnership with foreign developers as Colliers Philippines has observed more enquiries from firms based in Hong Kong, Japan and mainland China,” the Colliers International report explained.
The Philippine property market to be powered by millennials
Dot Property Philippines recorded more than one million visits in both May and June of this year with 60 percent of all property searches on the website coming from users aged 25 to 36.
This group will continue to have the greatest impact of the Philippine property market moving forward. That’s because millennials, who already comprise the majority of the Philippine workforce today, will account for 70 percent of the labor force by 2030.
“The real estate industry is moving online. This is a global trend and Filipinos have been quick to join, especially Millennials,” Tanya Peralta-Yu, country manager for Dot Property Philippines, reported. “More Filipino home buyers, both domestically as well as those overseas, are using online property portals. That’s because they are quicker and easier to navigate than offline methods. Portals also offer home seekers a better selection of homes to choose from.”