Low interest rates and higher construction costs prompt rise in property prices in the Philippines
Investors in the Philippines are shifting money from low-yielding bank deposits into real estate in search of higher returns, it has been revealed
Beth Collingz, Beth Collingz, Sales Director of PLC Global and lead partner with Pacific Concord Properties Inc’s Lancaster Brand of Condo Hotel developments in the Philippines said the trend is pushing up property prices in the main cities of Metro Manila and Cebu.
The strong demand for property in the Philippines has come from upper-income levels in search of higher returns, as well as from the middle to lower-income buyers who need housing.
Residential property prices in Manila have climbed at a time when high inflation and rising interest rates have put a dampener on other regional property markets such as India, Singapore and Hong Kong.
It is also having a positive outcome for developers. Philippine property developers such as Pacific Concord Properties are enjoying higher margins despite higher construction costs.
Collingz said it has more than doubled its condo hotel presales in the first half of this year and see this growth continuing well into 2009 as the company plans the launch of the third tower of its flagship Lancaster condotel development in Shaw Boulevard, Metro Manila. The Lancaster Atrium Tower B will offer another 350 condotel suites worth about $45 million in the marketplace over the next year.
Construction costs in the Philippines are seen to increase by more than 25% this year due to global steel and cement prices rises on the back of US Dollar devaluation.
Nearly all construction materials used in the development of Philippine high-rise buildings are imported. With the strong depreciation of the US Dollar value in the South-East Asia, construction materials exported from China, Korea and Taiwan, together with shipping costs, are increasing in price at a phenomenal rate as exporters of steel reinforcement bars, electrical wirings, copper based components and Portland cement in the region set upwards of 30% price increases. Collingz anticipates substantial increases in construction costs over the next 18-24 months will force developers in the Country to make adjustments to their selling price for new condo developments going up in Manila and other cities.
Now is the time to invest in Philippine Real Estate and lock in at current price levels said Collingz who’s Lancaster Condo Hotel brand offer the security of International Standards of Trust Account Escrow Banking facilities for all buyers payments. With the current trend in construction pricing we are looking at 17% price increases over the next 6 months on all our inventories of Condo Hotel units. Buyers whom reserve now can take advantage of current prices locked in for their units and see an immediate equity return on their investment.
Lancaster Manila Atrium, Shaw Boulevard, Metro Manila, Philippines is a "Full Service" Condominium Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale on up to 12 year ‘In-House’ developer extended no pre-qualification payment terms available to non-resident foreign nationals and investors with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes when not using their units through Condotel Management. This makes Lancaster Suites Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.
For further info regarding Lancaster Philippines Condo Hotel Investments please do not hesitate to contact us....
PLC International Marketing Networks
Pacific Concord Properties Inc.,
Shaw Boulevard, Mandaluyong City.
Metro Manila. Philippines
Phone: Manila  717 1958
Fax: Manila  718 1828
Pacific Concord Properties Inc.,
Cebu Branch Office
Lapu-Lapu City, Mactan.
Phone: Cebu  340 0721
Fax:  495 4938
Web: http://www.lancastersuites.com [Lancaster Condotels]
Web: http://www.plcglobalpinoy.com [Lancaster Condotels]