The price of a condo for sale in Manila, Philippines, has increased due to increased demand from Chinese investors, which was a result of warmer diplomatic ties between the two countries, according to a report.
Aside from investors, Colliers International Philippines said that employees of Chinese gaming companies are also driving demand for rental properties in Metro Manila. Condo units in Makati are particularly popular among them.
Higher Leasing Rates
Joey Roi Bondoc, Colliers Philippines Research Manager, said that some buildings in the Bay Area have charged higher leasing rates. By the second quarter of 2018, prices per square meter in certain sub-locations already cost P1,500 from P1,000 per square meter.
Residential vacancy rates in Metro Manila also fell to 11.3% between April and June. The higher occupancy stems from Chinese gaming companies that are leasing space in commercial buildings, representing more than 180,000 square meters of office space in the first six months of 2018. Employees of these firms tend to look for rental units near their place of work, hence the growth in leasing and investment activity goes hand in hand with residential and commercial real estate.
Colliers expects pre-sold transactions to exceed 60,000 units by the end of this year, which means that demand isn’t likely to slow down anytime soon. Chinese investors and employees favor places near airports and international schools, and these include Makati City and the Bay Area.
Another noticeable advantage of warmer ties between Beijing and Manila can be seen in provinces as far as Cebu, where foreigners have begun to consider investments in office and residential properties.
Whether you’re a foreign or local investor, prices of condominium properties in Metro Manila may continue to increase in the future. If you plan to take advantage of the country’s friendlier diplomatic ties with Beijing, now may be a good time to invest in residential properties