Would you now buy real estate, or will you stick to Bitcoins?

[ASEAN NOW News]

Over the years experts agree that investing in property has proven a reliable return against other types of speculation, including stocks and shares or even gold.

 

 

Recently we reported that Philippine President Rodrigo Duterte will end his term with the best housing production and financing average of 195,687 per year which is the highest since 1975, according to data from the Department of Human Settlements and Urban Development (DHSUD).

 

Developers who want to make it big and be more profitable in 2022 should prepare themselves for the influx of two big markets—the local and foreign buyers.

 

This is the forecast of one of the country’s top real estate brokers, Anthony Gerard Leuterio, founder of Cebu-based Filipino Homes.

According to Leuterio, the big comeback of tourism starting in 2022 will pave the way for a faster growth in real estate, especially since the industry is a by-product of tourism.

 

Although now with the current Russian situation, this is likely to be diluted

 

Poised for a rebound

 

 In its latest market report, property research firm Colliers said the Philippine market is poised for a rebound in 2022 on the back of the improving vaccination rate, complemented by rising consumer and business confidence and government-projected economic recovery.

Talking about residential developments, Colliers projects delivery of 9,700 units in 2022, up 18 percent from 8,200 units in 2021.

The firm is also confident that the government’s decentralization program and major public infrastructure projects should push developers to launch more master-planned communities outside Metro Manila.

Millennials, aged 25 to 34, who account for about 28 percent of the country’s labor force will continue to sustain the demand for integrated communities.

The residential growth, it added, should also be anchored by the growth in overseas Filipino worker remittances.

Remittances from overseas Filipinos sustained their growth momentum for nine straight months, hitting a three-month high in October, according to the Bangko Sentral ng Pilipinas.

BSP Gov. Benjamin Diokno said personal remittances increased by 2.4 percent to a three-month high of US$3.12 billion in October from $3.04 billion in the same month last year.

Tourism will help

“Tourism is just one industry. I expect that as soon as the country’s borders fully reopen, people will come to the Philippines, to Cebu and rent or buy properties here,” said Anthony Gerard Leuterio.

 

“But the question now is—are we ready for their arrivals? Do we have enough rooms or properties for them to check or buy?”

Real estate inventories or projects completed since two years ago have already been depleted, according to Leuterio.

He said even at the height of the Covid-19 pandemic, real estate became one of the busiest sectors as demand skewed toward homes large enough to accommodate the work from home and e-schooling setup.

 

Some buyers also bought properties in the countryside, away from the busy and crowded metro.

 

Property Report goes for Data Centres

 

Property Report’s magazine says that the Philippines is gearing up for an influx of data centre developments

According to their report, in 2024, enterprise cloud spending is expected to increase from USD1.8 billion to USD2.6 billion

 

OpenGov reported that the demand for data centres that support edge computing and cloud operations is accelerating rapidly in the Philippines. 

 

In terms of investment, the Philippines data center market was worth USD280 million by 2020. In 2024, enterprise cloud spending is expected to increase from USD1.8 billion to USD2.6 billion.

 

Foreign optimism

 

The outlook for Vietnam's own real estate industry in 2022 is expected to be positive as the market is receiving many impulses. ... Firstly, analysts state that Vietnam's economy is forecasted to recover at a positive level, growing at 6 - 6.5% or even 6.5 - 7% if the recovery program is well implemented.

 

They expect that demands will then bounce back strongly.

 

In the last days of 2021, Ho Chi Minh City People’s Committee issued a decision approving the adjustment of the 1/500 detailed planning of the eco-smart city project invested by Lotte Group in Thu Thiem New Urban Area of Thu Duc city.

 

This is a significant turning point after the project has been stalling for nearly 10 years due to the government’s review and inspection of all projects in Thu Thiem New Urban Area.

 

In March 2021, the government issued a decision to permit Lotte Group to continue this project after being reviewed by competent bodies.

 

Over in the States, last year was great for selling a home but not a great year if you were trying to buy one. Home prices rose sharply and the number of homes for sale declined.

 

Daryl Fairweather, Redfin’s chief economist said, “Remote work, low mortgage rates, a shortage of building materials and wealth inequality that has allowed an influx of affluent Americans to buy vacation homes, to name just a few factors, have come together to create a historic year for real estate.

 

Buyers paid more for homes, bought sooner than they planned, searched outside their hometowns or all the above. [2021’s] frenzied housing market has been one for the books — but it may become more balanced in 2022.”

 

Covid concerns

 

Information of the Omicron variant of COVID-19 appearing in the Philippines from a UK arrival in December has been a cause for worry in the real estate market.

 

However, now this variant seems to be under control in most Asian countries, many market players still have their hopes up for a recovery in 2022.

 

Talk the talk

 

Eventually, it is all down to several factors.

 

The industry themselves talking up the market in the media grabs people’s attention.

 

Secondly, the lowering of local interest rates will help a lot.

 

And finally buying the best property in the best location will always pay dividends.

 

Buying for investment is trickier, especially in younger markets such as Vietnam or Cambodia.

 

However, if you are considering buying for somewhere to live, then you are buying for choice and profit is not the main concern.

 

Still, if you think prices have bottomed out, maybe now is the time to head to the realtor’s office.

 

With Putin going crazy though maybe it is better to wait a few weeks to see if the prices will still drop. 

 

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[tonray]

"or will you stick to Bitcoins?"