Colliers predicted in the first half of 2019 that the Philippine residential real estate market would triumph by year-end — they were correct.
Consistent demand and purchase of residential real estate kept the industry at a level boom in 2019.
POGO still On-The-Go
POGO may have contributed to the growth of the country’s residential real estate market considering the number of foreign workers demanding more properties around the Philippines. But one incident damaged POGO’s image to the country- illegal operations and prostitution.
CNN reported that Makati Mayor Abby Binay shut down 4 POGO firms since these firms weren’t licensed, and were secretly fronts for prostitution and unsanitary catering services which leads to a temporary ban of POGO firms in Makati City.
As the financial capital of the Philippines, Makati is a paradise of opportunities for foreign investors like POGO firms. The city’s ban partially affects the city’s economy, as reported by JLL.
Nevertheless, POGO is still on the go despite the damage that has been done- there are a lot of cities that can cater to their demands for residential properties to house workers near their place of work. The demand causes a great headstart for development corporations such as Damosa Land, who recently has started to pre-sell its properties in Panabo, Davao Del Norte. As a financial capital down south, Davao is prime land for POGOs who find themselves bereft of office space — or the residential space for their workers.
Great news as well for DM Wenceslao, as it recently completes its 1st residential project in Parañaque. The company is expecting a wave of buyers this coming 2020.
New Joint Ventures Toward the New Year
JLL reported recently that Vista Land & Lifescapes Inc. partnered with Mitsubishi Estate Residence Co. Ltd. to develop Atwood Heights, a 40-story condo located in Malate, Manila.
Laguna and Bulacan, on the other hand, are expected to have a glut of foreign house-buyers in its land considering that P.A. ALVAREZ Properties & Development Corp. has forged two new deals to joint with Japan’s Hankyu Hanshin Properties Corp. in developing residential projects in these areas.
These joint developments between local and foreign development firms contributed to the country’s growth in the residential real estate market.
A similar thing that is recently happening Israel as Canada’s Manulife is investing $1.2 billion in U.S real estate in partnership with Harel.
It was expected by 2020 the residential real estate market of Israel will rise at least 57% as stated by Harel. The joint agreement was done on Christmas day, December 25 — how auspicious for Israel.
Will this residential real estate boom be still in favor this coming 2020?
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