By Nikki De Guzman:
With the property cooling measures starting to bite in Singapore and Hong Kong, more foreign buyers are buying residential properties in the Philippines, according to CBRE Philippines Chairman Rick Santos.
“New restrictive property tax laws in Hong Kong and Singapore will drive more Asian residential investors to the Philippines,” he said.
This year, both cities started imposing tougher curbs such as higher additional buyer’s stamp duty (ABSD). As such, the Philippines is viewed as a more investor friendly destination.
The country is one of the most attractive and affordable destinations for Asian real estate investors. “It’s much cheaper than Singapore, also from a tax perspective and cost. And from a financing point of view, it’s much more expensive to get financing there,” Santos explained.
Some foreigners have opted to buy newer branded projects such as Fairmont Raffles, while others prefer second-hand properties.
“I think people have been happy with their investments here, especially those who invest in US dollars. And also on a yield perspective, these are some of the highest yields in Asia as well. They’re able to buy into the market. Other places in Asia are too expensive,” Santos noted.
“It is exciting. It is early so I think you will see a lot more mainland Chinese money coming in, a lot more Russian money, a lot more Korean money, and also a lot more US money coming in as well.”
Moving forward, the country’s luxury property market is expected to flourish due to growing demand from expatriates, who are the main market for such developments.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Stories: