Colliers reports that a boom in the country’s GDP growth has a positive effect on the Philippines’ real estate market. Continuous growth over the next 3 years is likely.
Strong Demands on Condos and Houses
The demands of different units and houses in Metro Manila continue to soar as Bangko Sentral ng Pilipinas (BSP) reported that the prices of residential properties in this region declined by 1.1 percent compared to the second half of 2018.
As for the entire NCR, there is a massive 48% of residential property loans granted by the BSP. Davao is also experiencing considerable demand.
Sunstar reported that last November 16, Vista Land established 4 condo projects in Davao namely: Acropolyse, Frontera, Evora, and Terrace. To sum it all up, BSP granted 3% of the residential loans in the Davao region.
POGO Workers’ Appetite for Units
It was no doubt that the number of POGO workers from mainland China continues to increase in H2, considering that the Bureau of Internal Revenue reported that there are over 130,000 foreigners who worked in POGO companies back in the first half of 2019.
David Leechiu stated that the revenues of POGO businesses went over Php 115 million back in the second half of 2018, which is why different residential companies will take the opportunity to accommodate these workers. It is indeed, a blessing for these companies.
Declines and Fallbacks
In Australia however, the opposite is occurring. The government has blocked illegal gambling websites.
The Australian Communications and Media Authority (ACMA) reported that the country received revenue of over $400 million from gambling websites back in 2017. ACMA’s chair, Nerida O’Loughlin, reported that they’ve blocked 65 illegal sites since 2017.
This is the reason why the revenues of gambling sites in Australia continue to decline by $100 million even in H2 of 2019.
JLL Sydney market reported that there is only 5% of the development of residential units in major cities compared to last year’s 23% and 30% back in 2017. This was a huge fallback to the demands of residential properties since 2017.
Will Australia reach its peak in the residential property market once again? Or will the gambling industry’s effect on the property market become a distant memory?
The Philippine government hasn’t imposed sanctions on gambling companies. Will POGOs continue to affect the residential property market? Or will the streak end? What does 2020 hold for the country’s real estate market?
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