Current perspectives on the real estate markets and economy in Philippines in 2023 and 2024 recently viewed by real estate experts in the Philippines.

 

Recently, Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs was invited by the Philippine Federation of Real Estate Service Professionals Inc (PFRESPI) to teach valuation in Cebu during June 28 to 29, 2023, and to its expo during June 30 to July  1, 2023. Dr.Sopon conducted this survey from those participants who are experts in real estate, mostly real estate appraisers, brokers, and consultants. The number of respondents was 55 from 350 participants. This number was enough to reflect some insights. Some interesting findings were as follows:

 

Table 1: Rating Economy and Real Estate Markets (Scale 1-10)

Items                                                     2023          2024

Economy of Vietnam                                6.9            7.8

Real Estate Markets                                 7.3            8.1

 

Valuers and brokers in the Philippines viewed the country’s economy in 2023 as quite good (assessed at 6.9 out of 10). The economy in 2024 was rated even better at 7.8. Therefore, the future economy of the Philippines was at a high hope. Likewise, real estate markets were assessed to even be better. It was assessed at 7.3 out of 10 in 2023 and could be 8.1 in 2024. Real estate markets in the Philippines may boom in the near future.

 

Table 2: Growth Sectors of Real Estate in 2023

Sectors                                       Percentage

Low-rise housing                                 29.0%

Commercial properties                         18.8%

Industrial properties                             14.5%

Agricultural/Farms                                 8.7%

Condominiums                                      5.8%

Social housing                                      4.3%

Land                                                     2.9%

Office spaces                                       2.9%

Resort properties                                  2.9%

Retirement estates                                 2.9%

Others                                                  7.2%

Total                                                 100.0%

 

Low-rise housing particularly detached houses and barrack-style row houses were among the most popular in the Philippines as a whole (29%).  Commercial properties particularly shopping centres were the second in the priority with 18.8% of popularity.  There were industrial properties in the third priority.  Others were agricultural/farms, condominiums, social housing, land, office spaces, resort properties, retirement estates, and the like.

 

Table 3: Largest Developers in the Philippines

Companies                                  Percentage

Ayala Land                                             17%

SM Prime Holdings                                15%

Megaworld                                             10%

DMCI Homes                                           9%

Cebu Landmasters                                   6%

Camella                                                   4%

Filinvest                                                   4%

Robinsons Land                                       4%

Vista land                                                4%

Casanova Realty                                      3%

CITYLAND                                               3%

Rockwell Land                                         3%

San Miguel Group                                    3%

Sta. Lucia Land                                        3%

Others                                                   11%

 

Ayala Land, SM Prime Holdings, Megaworld, and DMCI Homes were among largest developers in the Philippines with 17% 15% 10%, and 9% respectively. They have been leading companies for decades and held their market positions because of their strong brands.  Other leading national developers were Cebu Landmasters, Camella, Filinvest, Robinsons Land, Vista land, Casanova Realty, CITYLAND, Rockwell Land, San Miguel Group, Sta. Lucia Land and the like.

 

Table 4: Cities with the Largest Amount of Real Estate Developments

Cities                                           Percentage

Makati                                                   12%

Cebu                                                     11%

Davao                                                     9%

Cavite                                                      6%

Taguig                                                     5%

Cagayan De Oro                                      4%

Batangas                                                 4%

BGC                                                        4%

Laguna                                                    4%

New Clark City                                         4%

Quezon city                                             4%

Iloilo                                                        3%

Pampanga                                               3%

Tagaytay                                                 3%

Bacolod City                                            2%

Baguio                                                    2%

Boracay                                                   2%

Bulacan                                                   2%

General Santos City                                 2%

Greater Metro Manila                                2%

Puerto Princesa                                       2%

Rizal                                                        2%

Tarlac                                                      2%

Others                                                     6%

 

Makati is the largest city and most attractive city in the Philippines for investment. Cebu was the second in the priority. However, since this questionnaire was conducted in Cebu, there may be some bias. Davao, the Philippines second largest city was the third in this priority. Actually, Cavite and Taguig were “bed cities” of Makati. This implied that Metro Manila (including Quezon City, New Clark City) was really a primary city of the Philippines.
 

Table 5: Target Countries to Buy Properties Abroad

Country                                       Percentage

USA                                                    13.4%

Singapore                                           12.2%

Canada                                               11.0%

Japan                                                 11.0%

Australia                                               8.5%

Thailand                                                8.5%

UAE                                                     6.1%

New Zealand                                         4.9%

Cambodia                                             3.7%

Portugal                                                2.4%

Switzerland                                           2.4%

United Kingdom                                    2.4%

Vietnam                                                2.4%

Burma                                                   1.2%

Finland                                                 1.2%

Germany                                               1.2%

Hong Kong                                           1.2%

Indonesia                                              1.2%

Malaysia                                               1.2%

South Korea                                          1.2%

Spain                                                    1.2%

Sweden                                                1.2%

Total                                                 100.0%

 

Amazingly, USA was the number one country where Philippines want to buy a house or property (13.4%). The second in the priority was Singapore (12.2%). Canada and Japan were the third and fourth respectively. Then Australia, Thailand, and UAE. It was believed that many people from the Philippines like to invest abroad if there was an opportunity.

 

In sum, the Philippines is growing rapidly and should be a good destination for investment in a variety of properties. Population of the country is still growing with higher purchasing power.