2015 the banner year for real estate investing
(Second of two parts)
To continue, this year will be a good year to invest in real estate as prices are still within reach for the average middle income earner. Thanks to competition, prices of properties have remained relatively stable and developers are getting more creative and aggressive when it comes to amenities, features and concept.
With BPOs increasing by the numbers each year, the number of local migrants will definitely push the demand for more rentable spaces for office and residential use. You might want to consider putting up a building configured for BPOs or rent out your condo to house call center executives.
Tourism is also expected to balloon in the next two to three years and is expected to push real estate buying to capture the need of tourists for alternative and cheaper accommodations. Presold condos are the way to go if you’re thinking of letting your unit for short stays. Be selective though if you’re planning to venture into leasing your condo. Worth noting is that, not all condos are ideal for rent. Condos that are accessible to public transport and conveniences will always be the first choice of renters.
With the Asean Integration in full swing this year, we will be seeing the coming of real estate practitioners from the region to make their luck in the Philippines. We will see real estate brokers and agents from the Asean (except Singapore for now) in competition with our local property professionals. For those who are not yet ready, they better level up or else, give up. Contrary to popular notion, the Asean Integration is never a downside to the practice. People in real estate service have so many reasons to be thankful for. To be in competition with the best of the best in Southeast Asia, is a pinch on the cheek that real estate service is not to be taken lightly. Real estate investors need service providers who can amply answer questions beyond what they know in product knowledge seminars (PKS). They should be able to understand the language of investors and should be able to crunch numbers when it comes to mortgage and making presentations on comparative returns.
The Asean Integration beacons a new beginning in real estate practice as well as augurs well for property players by being able to collaborate with sellers or agents outside the country -- a welcome addition to their product portfolio which they could also offer to their clients in their own country.
In a survey conducted by Gulf News last November, “majority of overseas Filipinos say they are looking at buying property back home for their families, or as an investment, in the coming 12 months.” Thus, this year is going to be another heyday for developers and property sellers. Investing in real estate in 2015 will be a good year for real estate with rentals also another “Big enterprise” says president of Rent.ph, Anthony Leuterio in light of the economic growth and the coming in of “BPO locators.”
Areas that I would like to consider as potentially profitable when it comes to rental are Labangon, Guadalupe, Banawa, IT Park, Lahug, Uptown or near Fuente Osmeña, Capitol, Labangon and those located near Cebu Business Park. Mabolo, Panagdait and Hernan Cortes in Mandaue are exciting to watch as well this year with the growth of retail conveniences in these locations.
Growth areas to watch in Cebu, especially for residential developments will be down south specially those proximate to South Road Properties. The start of rapid urbanization from Talisay to Carcar will be more pronounced this year with increased presence of retail players. Northwards, Mandaue, Lapu-Lapu, Consolacion will still be attractive if you’re thinking purchasing a property this year. Cordova and Liloan are new growth centers that have been eyed so expect property prices to rise this year in these areas.
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