Money Matters

A Good Time to Buy: Property Investment among Pandemic Boons

Looking to increase your income and secure your financial future despite the disruptions and difficulties caused by this global pandemic? Property investment is worth a close look right now.

Yes, yes, we know: now seems like a bad time to invest in anything for pandemic-related reasons. But what if we told you that isn’t the case when it comes to real estate?

Grabbing opportunity by the horns

Real estate tycoons like Manny Villar have been highlighting the opportunities presented by the pandemic for the sector.

Recently, the Villar Group successfully held a country-wide online convention called ViCon which gathered all of the Philippines’ real estate companies.

This convention opened brand-new doors to those who may want to create a niche in the real property business. Property investment at a time like this, with the blessing of the country’s most successful businessman? We’re definitely listening.

But this is only for the people looking to sell. So what about the people looking to buy?

All-time high

According to real estate experts, the industry has surprisingly soldiered on and even flourished despite the depressed market conditions, rising vacancy rates, declining rents, and subdued demand. Property investment has not wavered as a solid choice for Filipinos looking to earn and grow their wealth.

Apparently, construction of properties rose while prices dipped during the pandemic. This has been driven by the enthusiasm both public and private sectors have had in investing in the country.

The Philippine Statistics Authority (PSA) has observed that the total number of constructions in the country rose to a booming 114.1 percent year-on-year in the second quarter of this year. For example, residential constructions expanded by 102.8 percent due to areas outside the National Capital Region (NCR).

This suggests that the Philippines is currently experiencing a nationwide migration from urban centers to the areas outside the city with Filipinos in search of more space. And it has been a golden opportunity for the sector.

READ: What does President Rodrigo Duterte mean by “A Comfortable Life for All”?

All-time Low

What about costs? The prices of new properties in the Philippines declined in April-June 2021. People have been buying. Now we have your attention. Still don’t think this is a good time for property investment?

The Bangko Sentral ng Pilipinas (BSP) stated that its 2021 Q2 Residential Real Estate Price Index revealed a 9.4 percent dip in house prices due to the pandemic’s effects on residential property demand.

There is a current downtrend of property prices in the NCR due to price drops seen in single-detached, condominium, and townhouse units located in the metro.

This is a good thing because it also means that developments in rural areas are getting fast-tracked, as the Philippines undergoes some form of de-urbanization.

On that same point, property investment in those areas outside the NCR continue to make sense. Prices for those territories dropped by only 0.6 percent! This is due to an offset of the price growth in duplexes and townhouses, and condominium units against the drop in single-detached, and attached properties.

RELATED: Megaworld Q3 real estate sales double in 2021

So when is the best time for property investment? As the saying goes: “Yesterday was the best time. Today is the next best time.”

At the moment, the real estate market is giving the most bang for your buck if you’re looking for potential investments.

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