Mainland Chinese overtake OFWs as top buyers in Philippine residential market — report
MANILA, Philippines — Buyers from mainland China had dominated residential sales in the Philippines amid improving ties between Manila and Beijing, real estate services firm Leechiu Property Consultants said.
In a report dated March 18, Leechiu Property said overseas Filipino workers are no longer the top buyers in the residential market following a surge in mainland Chinese buyers, which is expected to continue in the long-term amid rekindled relations between the Philippines and China.
Leechiu Property added that residential projects in the Bay Area, Makati, Manila, Ortigas and Quezon City, as well as in other areas near Philippine offshore gaming operators (POGO) and existing Filipino-Chinese communities are “experiencing brisk take-ups of 12 units a month.”
Strong demand has also led to tenants dictating record high prices for rental units, Leechiu Property said. Rental units in the Bay area have climbed by 80 percent in the last three years.
“Assuming a constant aggregate take-up of 7,757 units, the remaining inventory in projects preferred by mainland Chinese buyers will be depleted in three months,” CEO David Leechiu said.
Overall, Leechiu Property said it expects “brisk growth rates” in office, residential and industrial real estate markets in the first quarter of 2019.
It also projected continued demand from the IT-BPM sector in Manila, as well as in the regions “provided there is a continuous stream of PEZA accredited spaces.”
PEZA, or the Philippine Economic Zone Authority, is tasked to promote investments, extend assistance and grant incentives to investors in export-oriented manufacturing and service facilities inside selected areas throughout the country.
“We expect transaction values to keep climbing this year not only in the office market but also in the residential and industrial arenas,” Leechiu said. — Ian Nicolas Cigaral
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