DSR Asset Management Overseas Property Investments

Property Philippines

The Philip­pines prop­erty mar­ket is cur­rently one of the hottest in the world. Affected worst by the Asia eco­nomic cri­sis, since Asia began to grow again the Philip­pines is fast becom­ing the com­mer­cial hub of south East Asia. Its low start­ing point has also made Philip­pines prop­erty a hot favourite with investors.

The mas­sive growth poten­tial of Philip­pines prop­erty is fuelled by the level of new busi­nesses and for­eign invest­ment the Philip­pines, espe­cially Manila is attract­ing. Philip­pines prop­erty is expected to grow in value by no less than 24% for the next five years and pos­si­bly even more in the next 2–3 years.

Invest­ment Prop­erty in the Philippines

Philip­pines prop­erty con­sid­ered wor­thy for invest­ment pur­poses, is cur­rently mainly in Manila. Philip­pines invest­ment prop­erty with the most poten­tial is off-plan apart­ment com­plexes, high rise tow­ers in Manila’s finan­cial and busi­ness centres.

Philip­pines prop­erty like that is attract­ing rental yields of 10% already, and that fig­ure is expected to climb in the com­ing years. Because of its mas­sive growth poten­tial, Philip­pines prop­erty was num­ber one for short-term invest­ment in the David Stan­ley Red­fern research department’s top ten.

Our Philip­pines Property

Our Philip­pines prop­erty is a three tower devel­op­ment of apart­ments in Manila’s main finan­cial dis­trict, Makati. As Philip­pines prop­erty goes, the Atrium tow­ers have found the per­fect bal­ance between lux­ury and afford­abil­ity. Their low price makes them a favourite with investors hop­ing to cap­i­talise on the huge growth poten­tial of Philip­pines prop­erty.

Con­struc­tion costs in the Philip­pines are expected to increase by more than 35 per­cent this year due to record oil, steel, cement and global ship­ping prices on the back of US Dol­lar devaluation.

Nearly all con­struc­tion mate­ri­als used in the devel­op­ment of Philip­pine high-rise build­ings are imported. With the strong depre­ci­a­tion of the US Dol­lar value in the South-East Asia com­bined with record high oil prices that may see crude hit 150/160 USD per bar­rel in July and August 2008, con­struc­tion mate­ri­als exported from China, Korea, Malaysia and Tai­wan, together with their ship­ping costs, con­tinue to increase in price at a phe­nom­e­nal rate as exporters of steel rein­force­ment bars, elec­tri­cal wirings, alu­minium, cop­per based com­po­nents and Port­land cement in the region are set for upwards of 40/50 per­cent price increases.

Devel­op­ers of the Lan­caster The Atrium Tow­ers in Manila stated they would increase prices of apart­ments by 10 per­cent, effec­tive July 16 2008, but clients who reserve now through can take advan­tage of cur­rent prices and see an imme­di­ate return on their invest­ment. Not to men­tion obtain­ing 70% inter­est free non sta­tus finance.
This is the per­fect oppor­tu­nity to get into a hot mar­ket as Philip­pines prop­erty is expected to grow in value by no less than 24 per­cent for the next five years and pos­si­bly even more in the next 2–3 years.

Philip­pines GDP has been ris­ing by over 5 per­cent year-on-year and Manila has fast become a major S.E Asian trad­ing post and is no com­pet­ing against Bangkok as the com­mer­cial gate­way to the East.
And despite the high prices of for­eign imports such as oil hit­ting the eco­nomic growth is expected to slow between 5.2–6.2 per­cent this year — prop­erty prices in the Philip­pines are being kept buoy­ant by a huge hous­ing back­log, low inter­est rates, friendly pay­ment terms, higher incomes of work­ers in the grow­ing out­sourc­ing indus­try, and a ris­ing expa­tri­ate population.

The hous­ing back­log of 3.8 mil­lion units, in par­tic­u­lar, has left 70 per­cent of the country’s esti­mated 90 mil­lion pop­u­la­tion with­out their own home. This is the big dif­fer­ence between now, and the prop­erty boom before the Asian cri­sis of 1997–98. The demand for hous­ing is not spec­u­la­tive; it is not investor dri­ven; but rather end-user demand dri­ven; a spe­cific demand that is being addressed.

And despite the ris­ing costs, con­struc­tion con­tin­ues to boom across much of the coun­try, espe­cially in Manila, a mostly low-rise city where dozens of res­i­den­tial tow­ers are begin­ning to dot the sky­line; at least 38,000 new apart­ments will be avail­able by 2013 in the Makati finan­cial dis­trict and in nearby Boni­fa­cio Global City alone.

It is in Makati that The Lan­caster the Atrium Tow­ers are sit­u­ated, in the heart of the cen­tral busi­ness dis­trict. Off plan prices per m2 in this dis­trict have grown by 40% in the last 24 months and the promises higher than aver­age yields of around 12 per­cent.
But by buy­ing through the over­seas prop­erty spe­cial­ists, David Stan­ley Red­fern, investors now have the chance to see a return of 10 per­cent cap­i­tal appre­ci­a­tion in just a few days.

Find out more about Philip­pines prop­erty.

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