There is an over supply of condo units especially in the lower and middle tier. With the phasing out of POGOs there will be a huge surplus of condo units for rent.
not for investment I bought mine so we have a place to stay within Manila and our province whenever we are staying in PI. right now my in law is renting it just so it is not empty. Any property it's very hard to resell.
im filipino i almost bought condo in davao back in 2020 just knowing that agent friends multiple condos are hard to sell after 1st owner some are for sale in 4 years
If you are one of those people who bought Condos in the Philippines you'll probably stressed out of your payments. Only foreigners can afford renting your condominium, and how many foreigners do you think will rent your condo when there are over saturated condos all over the Philippines. I see so many condos that are for sale and until now it's not sold. How do i know this, because I'm one of those people who almost purchase a pre selling condo in the manila and the agent showed me for sale condos for almost half the price when it was first built. There are so many of them for sale specially in manila, many of them are foreclosed unit. They say in the future it's gonna get better, it's not... it's only gonna get worst. Look what happened in Australia, Canada, and US and it's only a matter of time until Philippines get hit by real estate bubble. There are so many Filipinos who bought real estate all over the Philippines over a decade ago and yes the price was appreciated, but because its so damn expensive now, no one wants to buy it. I mean buying a condo worth 15 million, 20 million, and up is just engot move.
Foreigners actually are legally allowed to owned condos in the philippines and it is assumed as their investments. Foreigners are not allowed to own lands or residential houses, but not with condominiums. I know this because i am a former real estate agent.
I’m a fil-am in San Francisco and have family in PH. I also considered investing there but thought exactly the same thing what the original poster above has mentioned. Also the developers are building like crazy which has already saturated the market with over supply. I don’t see the PH condo market ending in a positive note.
It's also Ayala Land overinflated subdivisions of land as well. In Nuvali, they're asking 36,000 to 50,000 pesos per square meter. Thus around $277,000 usd for a 300 square meter lot. So for OFW or married foreignors or other Filipinos they will get sucked dry as well
Signed a reservation letter to buy condo and when I was about to make offer, condo got sold. Greatest thing that happened to me . That condo was new. But beyond that, no benefit. Lack of cabinets, no aircon units, no shower doors, no appliances, views were ok, but if windows were larger, then it would have been more attractive. And here is the weird part, a new condo in QC ( little desirable area) is almost the same prince of let’s say a real nice condo in BGC or Makati. Property managers and their board members act like overlords and u better do as they say
Property price in the Philippines is driven by speculation people buy it for investment not for living . This year 2024 due overbuilding there is an oversupply .Those who enjoyed good Airbnb was before 2019 now based on AirDNA a airbnb statistics and data report occupancy current occupancy % is now only 42%
By investing in a Reputable developer specially inside of township or estate is a very2 smart one. 100% agree with this man, he know what he is talking about.
There are more interesting places in the Philippines not just BGC . Go see Antipolo where lifestyle is urbanized enough to raise a family. Antipolo has its unique charm near to pink sand beach of 1 hr drive. We don’t need to go to Manila , Makati etc for a complete amenities. I live in Beverlyhills a gated subdivision and it’s worth the investment and chaos of Manila. It all boils down to what you really need. I bought my land for 3000ph / sqm 17 yrs ago and is now worth 35000ph /sqm. Go see the potentials for development in every place you go not just the ultra developed places where you’re money is flung off even before you can enjoy your investment.
One word: Amenities Antipolo doesn’t have the amenities that BGC offers. If you’re in you 70’s and are wheelchair bound, then Antipolo is perfect. For young professionals that love to walk everywhere (restaurants, shopping, movies, etc) nothing beats BGC.
According to Numbeo Manila has the 10th most expensive property prices in the world based on property price to income ratio (ratio of median apartment prices to median familial disposable income, expressed as years of income) at 32.8 years. This is even higher than Hong Kong but crazy part is the top 2 are in Africa. Others in the top 5 are Beirut and Tehran. I think what's driving the dynamics in these places is folks who've migrated to more affluent countries are buying into their home countries because it's a lot more affordable now that their spending power is several times over local incomes. Income declines due to currency crisis are also a factor like in the case of Beirut. As for the Philippines, I think OFWs are still the main buyers, along with retirees who've made their money abroad. Before COVID a lot of the buying was housing for the POGO gaming industry workers mostly from China. If you're looking to make a profit off a preselling property as soon as it gets built you should look elsewhere coz there's still a lot of projects in the pipeline but if you're looking for a 5-10 year horizon that sounds like a more reasonable expectation.
That is a very interesting and insightful way of looking at whether a market is expensive, using an average income ratio to average property prices. I think it's somewhat true but Manila has a huge range of prices and in the outskirts of Manila the prices significantly drop off especially in provinces. I will admit, that first tier cities like BGC and Makait are not meant for the average Filipino citizens. You will see a significant amount of foreigners, business people, wealthy Filipinos living there. I believe your metric does contribute to the lack of liquidity in the Philippines combined with the reasons I've mentioned in this video. But the way I look at it, if you can invest in the Manila market and get a high yield/return with the current conditions, that tells me there are still some upside to be had. If everything about this market is perfect, the returns would be far less. Also the Filipinos real estate market is not a open market for foreigners. It favors Filipinos and OFW's that are Filipinos because they can buy land. So yes condo prices are driven up by investments from Foreigners but we are limited to that segment. So if I am a Filipino, I would take advantage of this opportunity where you can still buy land for fairly inexpensive and profit from foreign investments if you are able to develop it.
We saw the same in the USA. In states like TN, FL, ID and MT, real estate prices skyrocketed, far far exceeding local mean income. All because of "foreign" invasion from wealthy people of NY, CA and Chicago.
You say not to invest in the Philippines it is because you are not Pilipino but we Pilipino we still invest in the Philippines that’s is understandable then you go to other countries don’t go to the Philippines
No, don't buy condos. They are oversupplied, overhyped, overfinanced, and lose money on sale. Only the developer oligarchs will earn a profit, sometimes.
I bought a condo in Makati so we can have somewhere to stay in whenever we're in the Philippines and rent it out via Airbnb whenever we're abroad. Now I'm hooked of adding more condos for the same reason because it's earning a very descent amount of money. Thanks to this very informative video.
However condos for airbnb have a low miserable rate of return. Better to file a Philippine Partnership with the SEC where the foreignor is the limited partner at 40% interest. Then have the Partnership annotate a lease with Register of Deeds to the Foreignor. Stick with land and forget condos. Their a lousy investment.
Oh, Dang it, isn't that too bad. But Elon Musk is investing in the Philippines, others will follow. Infrastractures will get better and soon. Things will change too. Stop the yacking.
It’s not development that will hold back that country. It’s its oligarchy. There’s no way up for its population and it’s just getting worse as all income goes to its rich. It’s crony capitalism, I got out coz I can’t compete. The corruption will eat you there.
Philippine condos are expensive compared to other SE Asian countries. I don't see Phil condo appreciation as sustainable. Cap rates are much lower than Phil government bond rates. (contrary to the assertions stated here). Be careful. Association fees can skyrocket for many reasons and ruin your financial projections. Condos are a NO for me.
[...Association fees can skyrocket for many reasons...] Very often, because some condo owners just don't pay them for many years and the courts take their sweet time to decide. In the meantime the owners who still can pay, foot the bill. Sometimes the fees are so high, you can easily rent a comparable condo for that price.
@10:03 put in your mind, this means it should be rented for a full 19 yrs ( like your condominium won't be empty for a single day or month) to recover your initial investment capital. In real estate world, it's like impossible to keep your condominium rented all the time for 19 yrs.. But still, it DOES NOT mean it's a bad investment! the real question is if your property at least will hold its price over the years ( if the value of your property rises it's much better of course)... In this case we can say investing on those Condos is safe..
Phil is building a new business district 2 to 3 times bigger than bgc!! They are reclaiming and island off the manila!! It's target completion is 2029!!
Buying the land and building and selling the condos is where the money is at. If you build to rent your taking a risk because of the natural disasters. In Butuan they pre sell condos for about 4 million pesos for 30 sq meters. They cost at most 2 million to build. In a pre sale situation you don't even need the bank to finance the project. I have 2 lots in Punta Bilar overlooking the ocean... priceless view. I will build 6 condos on each of them. If I pre sell 2 of them I have enough to build all of them. The architecture and engineering is already done. The problem with Manila... too many condos.. over saturated market.
@@JohnDang808 Look for videos of Punta Bilar. The land is to the right of the lighthouse up the hill. The view is awesome.. 30 lots were sold there. All sold. You can see the ocean for miles all around it. Nice and high no building can block the view.
I get what you are saying. But development seems like a risky headache to me. Contractors are crooks too. Another strategy is to play the longer game. Accumulate ocean property in an undeveloped area of an island with growing tourism prospects. Larger resort developers love large tracts with clean titles.... BTW, Hello from Siquijor.
@brianmay1876 I have that and also taking my time. Will pre sell when the time comes. I treat it as a hobby. If someone wants to buy one I will build it. I would certainly not build to rent. I don't take risks or borrow money. The condo market is oversarurated....but no condos where I'm building.....but only build for a buyer.
If PH allowed foreign ownership of lands, you wouldn't see Filipinos having houses and lots anymore! The Chinese could have bought the entire PH. They are so into PH that some are doing illegal means to acquire PH lands. PH is so small and it is only justified that only Filipinos should own PH lands. You have to understand that. Even the idea that foreigners are coming to PH had already skyrocketed prices of lands specially beachfronts. So please stop questioning this obviously valid PH law!
I'm sure this may be true but I think you're making this video mostly because you don't want people to invest there so there's less competition and it's easier for you to buy properties. Too bad I'm coming to the Philippines anyway
There is an over supply of condo units especially in the lower and middle tier. With the phasing out of POGOs there will be a huge surplus of condo units for rent.
not for investment I bought mine so we have a place to stay within Manila and our province whenever we are staying in PI. right now my in law is renting it just so it is not empty. Any property it's very hard to resell.
never mind the buying and selling, the government paperwork is such pain in the ass and takes years of back and forth to those offices.
I agree you are better off investing in properties from Evergrande!
im filipino i almost bought condo in davao back in 2020 just knowing that agent friends multiple condos are hard to sell after 1st owner some are for sale in 4 years
I’ve got an American friend who has been trying to offload/ sell his condo for 3 years.
If you are one of those people who bought Condos in the Philippines you'll probably stressed out of your payments. Only foreigners can afford renting your condominium, and how many foreigners do you think will rent your condo when there are over saturated condos all over the Philippines. I see so many condos that are for sale and until now it's not sold. How do i know this, because I'm one of those people who almost purchase a pre selling condo in the manila and the agent showed me for sale condos for almost half the price when it was first built. There are so many of them for sale specially in manila, many of them are foreclosed unit. They say in the future it's gonna get better, it's not... it's only gonna get worst. Look what happened in Australia, Canada, and US and it's only a matter of time until Philippines get hit by real estate bubble. There are so many Filipinos who bought real estate all over the Philippines over a decade ago and yes the price was appreciated, but because its so damn expensive now, no one wants to buy it. I mean buying a condo worth 15 million, 20 million, and up is just engot move.
Foreigners actually are legally allowed to owned condos in the philippines and it is assumed as their investments. Foreigners are not allowed to own lands or residential houses, but not with condominiums.
I know this because i am a former real estate agent.
IMHO reasonable condo price range for a Filipino family is 3M and below. Over that figure is a no go.
I’m a fil-am in San Francisco and have family in PH. I also considered investing there but thought exactly the same thing what the original poster above has mentioned. Also the developers are building like crazy which has already saturated the market with over supply. I don’t see the PH condo market ending in a positive note.
It's also Ayala Land overinflated subdivisions of land as well. In Nuvali, they're asking 36,000 to 50,000 pesos per square meter. Thus around $277,000 usd for a 300 square meter lot. So for OFW or married foreignors or other Filipinos they will get sucked dry as well
Signed a reservation letter to buy condo and when I was about to make offer, condo got sold. Greatest thing that happened to me . That condo was new. But beyond that, no benefit. Lack of cabinets, no aircon units, no shower doors, no appliances, views were ok, but if windows were larger, then it would have been more attractive. And here is the weird part, a new condo in QC ( little desirable area) is almost the same prince of let’s say a real nice condo in BGC or Makati.
Property managers and their board members act like overlords and u better do as they say
Property price in the Philippines is driven by speculation people buy it for investment not for living . This year 2024 due overbuilding there is an oversupply .Those who enjoyed good Airbnb was before 2019 now based on AirDNA a airbnb statistics and data report occupancy current occupancy % is now only 42%
Here is something bad, property managers are now limiting airbnbs. So investing in a condo, just got worse.
By investing in a Reputable developer specially inside of township or estate is a very2 smart one. 100% agree with this man, he know what he is talking about.
Thank you.
Excellent video, loaded with valuable information if you are considering investing in the Philippines.
There are more interesting places in the Philippines not just BGC . Go see Antipolo where lifestyle is urbanized enough to raise a family. Antipolo has its unique charm near to pink sand beach of 1 hr drive. We don’t need to go to Manila , Makati etc for a complete amenities. I live in Beverlyhills a gated subdivision and it’s worth the investment and chaos of Manila. It all boils down to what you really need. I bought my land for 3000ph / sqm 17 yrs ago and is now worth 35000ph /sqm. Go see the potentials for development in every place you go not just the ultra developed places where you’re money is flung off even before you can enjoy your investment.
One word: Amenities
Antipolo doesn’t have the amenities that BGC offers. If you’re in you 70’s and are wheelchair bound, then Antipolo is perfect. For young professionals that love to walk everywhere (restaurants, shopping, movies, etc) nothing beats BGC.
What would I do there in Antipolo? No lifestyle. Just a place to go there and die. Lol
Which road in bh?
Pilipino thinking that, with soo many kabayans working abroad. They think most would retire back home or even by property.
According to Numbeo Manila has the 10th most expensive property prices in the world based on property price to income ratio (ratio of median apartment prices to median familial disposable income, expressed as years of income) at 32.8 years. This is even higher than Hong Kong but crazy part is the top 2 are in Africa. Others in the top 5 are Beirut and Tehran. I think what's driving the dynamics in these places is folks who've migrated to more affluent countries are buying into their home countries because it's a lot more affordable now that their spending power is several times over local incomes. Income declines due to currency crisis are also a factor like in the case of Beirut. As for the Philippines, I think OFWs are still the main buyers, along with retirees who've made their money abroad. Before COVID a lot of the buying was housing for the POGO gaming industry workers mostly from China. If you're looking to make a profit off a preselling property as soon as it gets built you should look elsewhere coz there's still a lot of projects in the pipeline but if you're looking for a 5-10 year horizon that sounds like a more reasonable expectation.
That is a very interesting and insightful way of looking at whether a market is expensive, using an average income ratio to average property prices. I think it's somewhat true but Manila has a huge range of prices and in the outskirts of Manila the prices significantly drop off especially in provinces. I will admit, that first tier cities like BGC and Makait are not meant for the average Filipino citizens. You will see a significant amount of foreigners, business people, wealthy Filipinos living there. I believe your metric does contribute to the lack of liquidity in the Philippines combined with the reasons I've mentioned in this video. But the way I look at it, if you can invest in the Manila market and get a high yield/return with the current conditions, that tells me there are still some upside to be had. If everything about this market is perfect, the returns would be far less. Also the Filipinos real estate market is not a open market for foreigners. It favors Filipinos and OFW's that are Filipinos because they can buy land. So yes condo prices are driven up by investments from Foreigners but we are limited to that segment. So if I am a Filipino, I would take advantage of this opportunity where you can still buy land for fairly inexpensive and profit from foreign investments if you are able to develop it.
We saw the same in the USA. In states like TN, FL, ID and MT, real estate prices skyrocketed, far far exceeding local mean income. All because of "foreign" invasion from wealthy people of NY, CA and Chicago.
You say not to invest in the Philippines it is because you are not Pilipino but we Pilipino we still invest in the Philippines that’s is understandable then you go to other countries don’t go to the Philippines
He's either Chinese, Vietnamese, Laos or what? Anti-filipino.
Another great informative video, John 😊
thank you!
San Miguel stock is going up in value. Also Toyota Financial Philippines is doing good as well.
No, don't buy condos. They are oversupplied, overhyped, overfinanced, and lose money on sale. Only the developer oligarchs will earn a profit, sometimes.
Most condo unit are not bought for business reason but for a reserve during vacation time.
Oh...so you're the founder of Zipmatch! Nice!
I bought a condo in Makati so we can have somewhere to stay in whenever we're in the Philippines and rent it out via Airbnb whenever we're abroad. Now I'm hooked of adding more condos for the same reason because it's earning a very descent amount of money. Thanks to this very informative video.
Good shout, but who takes care of your property while you are abroad?
Specially you are renting it via Airbnb.
However condos for airbnb have a low miserable rate of return.
Better to file a Philippine Partnership with the SEC where the foreignor is the limited partner at 40% interest. Then have the Partnership annotate a lease with Register of Deeds to the Foreignor. Stick with land and forget condos. Their a lousy investment.
Impossible! You’re roi will be 110 years from now 😂
Oh, Dang it, isn't that too bad. But Elon Musk is investing in the Philippines, others will follow. Infrastractures will get better and soon. Things will change too. Stop the yacking.
It’s not development that will hold back that country. It’s its oligarchy. There’s no way up for its population and it’s just getting worse as all income goes to its rich. It’s crony capitalism, I got out coz I can’t compete. The corruption will eat you there.
Investing in cheap labor
Philippine condos are expensive compared to other SE Asian countries. I don't see Phil condo appreciation as sustainable. Cap rates are much lower than Phil government bond rates. (contrary to the assertions stated here). Be careful. Association fees can skyrocket for many reasons and ruin your financial projections. Condos are a NO for me.
I wont invest in phillipines thanks to this video!
[...Association fees can skyrocket for many reasons...]
Very often, because some condo owners just don't pay them for many years and the courts take their sweet time to decide. In the meantime the owners who still can pay, foot the bill. Sometimes the fees are so high, you can easily rent a comparable condo for that price.
John, what are your thoughts on prop tech 2.0 in the Philippines? Specifically on fixing issues of ease of payment, transparency and authority.
Don't listen to him.
philippines is one of the few places in asia that has a rapidly expanding population.
@10:03 put in your mind, this means it should be rented for a full 19 yrs
( like your condominium won't be empty for a single day or month)
to recover your initial investment capital.
In real estate world, it's like impossible to keep your condominium rented all the time for 19 yrs..
But still, it DOES NOT mean it's a bad investment! the real question is if your property at least will hold its price over the years ( if the value of your property rises it's much better of course)...
In this case we can say investing on those Condos is safe..
I own a condo by manila bay it is always fully booked on airbnb past 2 years mosty by locals so i think i done well
Deal only with PRC licensed Real Estate Professionals to avoid getting scammed!
Very informative! New here and appreciate your contents. So, what’s your take on flipping condos in PH?
it's hard to flip. not like other countries. you need to wait to be able to sell
Phil is building a new business district 2 to 3 times bigger than bgc!! They are reclaiming and island off the manila!! It's target completion is 2029!!
I agree you are better off investing in properties from Evergrande!
I’m still interested in buying your BGC condo, if your interested
Buying the land and building and selling the condos is where the money is at. If you build to rent your taking a risk because of the natural disasters. In Butuan they pre sell condos for about 4 million pesos for 30 sq meters. They cost at most 2 million to build. In a pre sale situation you don't even need the bank to finance the project.
I have 2 lots in Punta Bilar overlooking the ocean... priceless view. I will build 6 condos on each of them. If I pre sell 2 of them I have enough to build all of them. The architecture and engineering is already done.
The problem with Manila... too many condos.. over saturated market.
Good play. If you're in a good location, you should be able to sell saturated or not.
@@JohnDang808 Look for videos of Punta Bilar. The land is to the right of the lighthouse up the hill. The view is awesome.. 30 lots were sold there. All sold. You can see the ocean for miles all around it. Nice and high no building can block the view.
I get what you are saying. But development seems like a risky headache to me. Contractors are crooks too. Another strategy is to play the longer game. Accumulate ocean property in an undeveloped area of an island with growing tourism prospects. Larger resort developers love large tracts with clean titles.... BTW, Hello from Siquijor.
@brianmay1876 I have that and also taking my time. Will pre sell when the time comes. I treat it as a hobby. If someone wants to buy one I will build it. I would certainly not build to rent. I don't take risks or borrow money. The condo market is oversarurated....but no condos where I'm building.....but only build for a buyer.
I heard some of the condo they preselling are sold already!!
You already a Philippine citizen because your parents are from there correct?
Big problèm with condo no Airbnb allowed
Problem is all you facts are saying is being ignorant of foreigner in the phil law.
If PH allowed foreign ownership of lands, you wouldn't see Filipinos having houses and lots anymore! The Chinese could have bought the entire PH. They are so into PH that some are doing illegal means to acquire PH lands. PH is so small and it is only justified that only Filipinos should own PH lands. You have to understand that. Even the idea that foreigners are coming to PH had already skyrocketed prices of lands specially beachfronts.
So please stop questioning this obviously valid PH law!
True. Pinoys not particularly business savvy and easily taken in a deal.
Go others cautry 👋
SUBBED
Condos = trap
5:43 haha proxy
You must think ur smarter than elin musk to post this
I'm sure this may be true but I think you're making this video mostly because you don't want people to invest there so there's less competition and it's easier for you to buy properties. Too bad I'm coming to the Philippines anyway