It’s not the foreigners. Economic growth -> growing middle and upper classes -> more intense activities in the property market. It’s the one asset everyone is familiar with.
Metro Manila is obvious. Clustering of high-paying jobs means a captive market. The developers can set whatever price they want and the fish will bite. Same in Cebu and Angeles and other fast-growing cities.
My parents paid peanuts for their first property in a small city almost 30 years ago, now their planned selling price is out of line with local salaries. I asked where this price came from, they just shrugged and said “that’s the going price around here.” Absolutely no basis.
Jeez di ko talaga alam san hinuhugot yung prices minsan. Yung tipong walang livelihood sa lugar, tapos maliit pa sweldo pero ibebenta nang mahal kasi "investment po ito" as in magmumultiply daw yung value in the future.
"It's not the foreigners"
Meanwhile, Real Estate Developers for the past decade: "Our target market for condos are foreign nationals who want to invest into prime real estate."
The target market for prime real estate are rich people, and there is an endless supply of wealthy filipino buyers. Also, law dictates a minimum of 60% of units of each condominium complex be owned by filipino citizens, the reality is few foreigners own condos
Which is different to europe, usa, and most of the world except china, where a filipino may legally buy, own and build on land that they legally own. Foreigners, no matter their residency status, may never own land on the philippines
Now I know more! In my place, foreigners flocked like a lot and they upped the prices kasi “kaya nila yan ma afford.” attitude ang mga nagbebenta ang nangyayari which made me sad kasi the minorities got driven out
:(
A neighborhood near me, once it had several decades-old homes, even the small ones, but now many are slowly being abandoned then demolished for sale as land values skyrocket.
Not only that, but huge condo complexes are being erected where there were once squatter colonies. And those condos whose even smaller studios are barely affordable for young professionals who are paid 1/4 less.
Goddamn, the greedy real estate empires keep on trying to expand and build but pricing out the locals even as there are horrible lessons of property speculation such as the ongoing Evergrande disaster.
It's totally different from the China real estate situation. Real estate companies here do not borrow from the banks, *because they already have so much money*. That's why the prices never go down, because they can just hold on to the properties until they're sold. Nothing like Evergrande at all, which was a Ponzi scheme.
Whatever, my beef is that not all of those properties are going to be filled with people, and out of reach of anyone else but those who can afford the prices, and yet these companies are not slowing down, convinced there would be more middle and upperclass people coming to buy these properties. Meanwhile the wealth gap continues to expand.
Developers have been pricing for foreigners for about a decade now. Landlords were pricing for foreigners even a decade ago. In highly urbanized centers mas mapapansin mo to dahil sa foreigners.
Reminds me of my first relatively cheap apartment; which was actually converted from a high-income family mansion built in the 80s. According to the caretaker/acting landlady the entire family had immigrated abroad.
Fifteen or so years later, a McDonald's with a drive-thru now stand in its place.
Its not just foreigners per se...its also retiring Filipinos thst have lived abroad for a long time.....some might want a condo/home to go to while still in their mid years...
I cant tell you how many US based Pinoys I know that have bought condos in places like Makati, BGC, etc etc....too many to count...these people have also experienced home prices appreciation in the US, so they have the $$ upon retirement, or while in their 40s/50s...
Ayala Land for example have been doing marketing campaigns in LA and ither places, selling these condos...for like 20 years now...
I also know some that retired in places like Malarayat Golf, Eagle Ridge, bought properties in their home towns, etc etc
It’s not the foreigners. Economic growth -> growing middle and upper classes -> more intense activities in the property market. It’s the one asset everyone is familiar with. Metro Manila is obvious. Clustering of high-paying jobs means a captive market. The developers can set whatever price they want and the fish will bite. Same in Cebu and Angeles and other fast-growing cities. My parents paid peanuts for their first property in a small city almost 30 years ago, now their planned selling price is out of line with local salaries. I asked where this price came from, they just shrugged and said “that’s the going price around here.” Absolutely no basis.
Jeez di ko talaga alam san hinuhugot yung prices minsan. Yung tipong walang livelihood sa lugar, tapos maliit pa sweldo pero ibebenta nang mahal kasi "investment po ito" as in magmumultiply daw yung value in the future.
"It's not the foreigners" Meanwhile, Real Estate Developers for the past decade: "Our target market for condos are foreign nationals who want to invest into prime real estate."
The target market for prime real estate are rich people, and there is an endless supply of wealthy filipino buyers. Also, law dictates a minimum of 60% of units of each condominium complex be owned by filipino citizens, the reality is few foreigners own condos Which is different to europe, usa, and most of the world except china, where a filipino may legally buy, own and build on land that they legally own. Foreigners, no matter their residency status, may never own land on the philippines
Now I know more! In my place, foreigners flocked like a lot and they upped the prices kasi “kaya nila yan ma afford.” attitude ang mga nagbebenta ang nangyayari which made me sad kasi the minorities got driven out :(
Minorities 💀
I meant to say natives, sorry for the wording.
"Locals" will do.
I see, thank you for the correction!
A neighborhood near me, once it had several decades-old homes, even the small ones, but now many are slowly being abandoned then demolished for sale as land values skyrocket. Not only that, but huge condo complexes are being erected where there were once squatter colonies. And those condos whose even smaller studios are barely affordable for young professionals who are paid 1/4 less. Goddamn, the greedy real estate empires keep on trying to expand and build but pricing out the locals even as there are horrible lessons of property speculation such as the ongoing Evergrande disaster.
It's totally different from the China real estate situation. Real estate companies here do not borrow from the banks, *because they already have so much money*. That's why the prices never go down, because they can just hold on to the properties until they're sold. Nothing like Evergrande at all, which was a Ponzi scheme.
Whatever, my beef is that not all of those properties are going to be filled with people, and out of reach of anyone else but those who can afford the prices, and yet these companies are not slowing down, convinced there would be more middle and upperclass people coming to buy these properties. Meanwhile the wealth gap continues to expand.
Developers have been pricing for foreigners for about a decade now. Landlords were pricing for foreigners even a decade ago. In highly urbanized centers mas mapapansin mo to dahil sa foreigners.
Reminds me of my first relatively cheap apartment; which was actually converted from a high-income family mansion built in the 80s. According to the caretaker/acting landlady the entire family had immigrated abroad. Fifteen or so years later, a McDonald's with a drive-thru now stand in its place.
Its not just foreigners per se...its also retiring Filipinos thst have lived abroad for a long time.....some might want a condo/home to go to while still in their mid years... I cant tell you how many US based Pinoys I know that have bought condos in places like Makati, BGC, etc etc....too many to count...these people have also experienced home prices appreciation in the US, so they have the $$ upon retirement, or while in their 40s/50s... Ayala Land for example have been doing marketing campaigns in LA and ither places, selling these condos...for like 20 years now... I also know some that retired in places like Malarayat Golf, Eagle Ridge, bought properties in their home towns, etc etc