Philippine property investment in 2023 will chart a different course than what we have seen over the past few years. The pandemic is fully in the rearview mirror and a recovery is already well underway in most locations and segments.
In places such as Metro Manila, demand and prices rose noticeably in 2022 meaning investors may want to act quickly. Other locations, such as Davao and Metro Cebu, are up-and-coming real estate destinations in the Philippines worth exploring.
Being informed is vital whatever your decision happens to be. That is why we are here with four things you want to know about Philippine property investment in 2023.
4 things to know about Philippine property investment in 2023
Prices on the rise
Philippine property prices rose again in the third quarter of 2022 with the Bangko Sentral ng Pilipinas (BSP) Residential Real Estate Price Index rising 6.5 percent year-on-year in the third quarter of 2022. The biggest gains were seen in the National Capital region where residential property prices surged by 14.6 percent due in large part to the condominium sector.
This was the sixth consecutive quarter that Philippine property prices have risen, and they are now inching closer towards pre-pandemic levels. Home price growth coincided with on-site work and in-person classes resuming in full.
Those thinking about Philippine property investment in 2023 may not want to wait too much longer before buying. Pent up housing demand in several locations means property prices are expected to continue on their upward trajectory assuming the central bank doesn’t aggressively increase interest rates.
Metro Manila condo market heats up
Bonifacio Global City and Makati continue to lead the way when it comes to Metro Manila condo demand. The two areas, which are home to several key business districts, accounted for nearly half of all National Capital Region (NCR) condominium inquiries last year. Quezon City, City of Manila and Pasig round out the top five locations for condos in the NCR.
The majority of Metro Manila condo demand continues to be for studio and one-bedroom units but a shift over 2022 saw interest in two-bedroom condominiums rise steadily. A need for larger spaces was among the most noticeable trends to emerge during the pandemic and doesn’t appear to be slowing down.
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Davao poised for a breakout?
For the past few years, the Davao economy and real estate market have outperformed the rest of the Philippines. Despite this, the region has flown under the radar among many investors. Could 2023 finally be the year it breaks out on the regional stage?
It is hard to say. Davao certainly has everything needed to draw in real estate investors. Not only has there been a significant investment in local infrastructure but the region continues to attract national and international companies.
There is also some exceptional beaches and tourist destinations in Davao. Seriously, how is Samal not more well-known? The local government has plans to bring in more visitors with 1.8 million expected in 2023.
Elsewhere, developers are rolling out new projects here with some, such as The Piazza at The Grand Citygate Davao, providing outstanding investment terms. Even if Davao doesn’t get the attention it deserves this year, savvy real estate investors should keep an eye on what’s happening.
Don’t be tricked
Those considering Philippine property investment in 2023 will want to have their guard up when looking for real estate. Over the past few years, scams have become more prevalent with the biggest issue being unlicensed agents falsely representing properties. These individuals use platforms, such as Facebook, to find property seekers.
“Ninety percent of real estate salespersons on Facebook are unlicensed,” PAREB Senior Vice President Jovencio Cainong was quoted as saying by the Philippine News Agency. “The continued operation of colorum agents have resulted in loss of income for the licensed real estate practitioners and poses a high risk for the buyers. Buyers are at risk of being offered fictitious properties or even with problematic titles if they transact with unlicensed agents.”
OFWs and international investors are at the highest risk of being tricked. Many scammers come across as professional making it difficult to identify unlicensed brokers digitally or over the phone. The best way is to ask the person you’re speaking to provide proof they are a PRC Accredited Real Estate Salesperson. Remember, only these individuals are legally allowed to sell properties.
We also recommend having a locally-based attorney take a look at everything before investing. There are other scams, such as the use of a fake title, they can spot. And while it may cost extra, it’s far better having peace of mind before you buy than finding out something is wrong after the fact because that will see you spend a lot more money.
Related: Philippine real estate agents join forces to protect the local property market