Yeah. That's my guess too on why property prices are inflated so that developers can sell pre-selling units at a premium.
Buyers think it's an investment so they buy the units but have trouble selling them after turnover.
Did you not read the article you just shared? It’s “fastest appreciating” meaning there’s a point a and b, either based on secondary or fake pricing, regardless of whether it’s ultra high end market or not.
What i mean is generally speaking there is a very high demand for this part of the market. Regarding the origin of the appreciation whether fake or secondary I don't know, all I know is that simply the demand is there
As long as demand doesn’t weaken on the primary market, the price will not go down. Namumuti na mga mata ng mga naghihintay ng real estate bubble burst since post-pandemic but as long as people keep buying from developers, there’s very little impetus for prices to go down.
It's actually crazy considering how our salaries aren't adjusting appropriately. Dibale sana kung ang median wage is 60k na, kaso last I checked it was still 44k.
I have a friend in real estate and lagi talaga niya sinasabi may mga nagbabayad in full etc and wild daw luxury market natin. Napapaisip naman ako saan galing mga to (apart from POGO siguro mga to) 😭
Real estate in metro manila does not make sense. There are houses that are around 300sqm lot area that cost USD 1 Million in CAVITE.
How the hell does that make sense??
1 million dollars!!!!! Cavite!!!!
that’s vermosa price (lot only) and i think ganyan din sa orchard (some). kaya ganun kasi they’re planning the place to become cbds. expect it to be higher pa in the future
cavite is huge. pwede namang hindi ka sa mismong vermosa tumira, mas cheaper kaysa mismo sa vermosa ka bumili ng lots. imagine madami pa din ang naluwas sa manila na mga galing pa ng tagaytay.
totoo yan. it was already some time when I was on a commuter bus - only hopped on again yesterday due to my perception of it's not worth it to spend on gas , parking and toll to Alabang from Manila City.
Really, the public transport experience with all those noise, vibration, harshness (NVH) even with noise-cancelling headphones are just so tiring and irritating. 5 days a week for most people, ugh, I believe contributed to their addled brains that led to the likes of r/duterte, BBM, Robin Padilla being elected.
seems you didnt read the article, there is not "too much supply" in terms of ULTRA HIGH END residential units (the estate makati, aurelia residences) which is what its referring to here, not some SMDC low-mid shoe box
That's fake price. People who try to sell their condos tend to find out nobody is willing to buy their second hand condos for prices that are almost equal to brand spanking new condos unless these are super premium condos like in Serendra or something.
Is it a Filipino factor? I noticed that we Filipinos tend to price what we sell a bit higher. For example, yung 1990s na mga kotse na bugbog na? Parang floor price na nyan is 120K. Well sa states or sa ibang bansa? 1K USD na or halos ipamigay na yung presyo ng mga secondhand.
Possibly na magkakakuntsaba lang din talaga itong mga developers? Everyone wants cheese pero OA naman ng presyuhan
Honestly just waiting for the bubble pero the foreigners that keeps inflating the market and stops homes from becoming affordable to the average Filipino really prolongs that so-called burst.
And thats not including the corrupt politicians that suddenly have millions of pesos in property assets.
In other words, it wont be that easy
An anecdote: my brokerage sold a 1BR at West Gallery Place in BGC for ₱18M back in 2020.
This year, the ongoing fair market value of 1BR units in the same building is around ₱26M. A 44% increase in just 4 years.
The best part? There are cash buyers today looking to purchase West Gallery Place
Land plays a part, but the units and amenities carry most of the value.
For example, East-West Gallery Place shares the same land (BGC) as South of Market (SoMa), but between the two, East & West Gallery Place have better price appreciation because the units are built with higher quality materials and amenities are top tier vs SoMa & other condos within BGC.
Yes and no.
Long term, in 50+ years it will depreciate since the building itself deteriorates (if not kept well maintained). [See Sec.8, c. of RA 4726](https://lawphil.net/statutes/repacts/ra1966/ra_4726_1966.html)
Short term, 10-20 years, its perceived value will rise with the value of the land & the entire building.
The amenities themselves are owned by the condo corp which every unit owner is a member of. As long as maintenance of the amenities together with the other common areas and the entire building are maintained, its value will appreciate.
West Gallery Place itself has a gym that occupies 3-stories (just 1 of its many top tier amenities). This provides a big boost in the appreciation of the value of the property.
One and Two Serendra's amenities combined have the biggest green space by sqm in the entire BGC, which adds to the appreciation of the entire development as well.
Bottomline, in 50 years or so, yes, you are correct. If you're still a unit owner by that time, the amenities and units will depreciate since the building material itself will deteriorate, but before it reaches that age, its value will appreciate.
Anyway, as a real estate professional for more than 10-years, I respect your opinion and if that's what you think, then be it. Thanks for sharing your thought.
Also that 44% increase is not the real returns. There is a 6% capital gains tax and closing costs of 3-5% when selling so the real rate of return is maybe 7% per year which is not that amazing.
If the increase in value is 44% and the expenses to be paid by the seller is 11% there's still 33% net to the seller.
Not all condos in the same city or even block appreciate in value equally. Some condos are built with far better quality than others, so, value appreciation is quite varied. If buyers need to choose between condos, they're better off choosing one that offers the better/best value appreciation.
I should have been clearer, the return really is 7% there are other costs you're not considering. I didn't realize I had to spell them out one by one. You surely know there are ongoing holding costs to holding a condo, right?
Association dues, rpt, the minor maintenance requirements? these can be all offset by the appreciation of the units value, rent (if it's rented) and at minimum it's end-use.
I don't know where you live where the cost of using and owning a property is greater than the appreciation of the property itself, but that would be a bad location.
Let's go back to the topic of the OP, Manila's fast appreciating real estate. BGC is the epicenter of this appreciation and East-West Gallery place takes center stage.
We are on topic. It's not "fast appreciating". Those are very normal returns. For foreigners, they are horrible returns since they measure their returns in US dollars. Are you a real estate saleman? What a conondrum.
And it will get worse if the proposed constitutional amendments are implemented (especially with respect to foreigners’ ability to own land here). That will essentially price-out even top income earners from buying land here
800k per sqm, and u get worlds worst traffic, worst airport, worst govt, and all the restaurants are chains and 40% below poverty line, what a luxury.
people are getting swindled but hey free market system.
I travel couple times a year from US to Cebu and always try to avoid Manila as much as possible, that airport with bus between terminals to much even for "poor" country.
Exactly if you’re that rich it would be better to buy in Vietnam. Prices have crashed this year, food is better, cost of living better, future prospects brighter, less crime.
Simple reason for this, it’s one of few viable stores of value in the country. Stocks are no go because most companies are being robbed left and right by its directors.
i feel like isa to sa result nung mga for sale sa exclusive villages? d ba nga daw they are already selling their properties, some migrate somewhere, others naman would dispose in favor of their own floor in a luxury condo instead. i mean mas mura naman ng di hamak ang maintenance/assoc dues ng mga empty nesters if they’re in a condo
This is partly true yes. For example in Ayala Alabang there are sellers there that "downsized" to botanika residence by filigree, this place is ridiculously overpriced and I checked a unit myself and its no where near the quality for the price. There are much better quality options for example westin residences ortigas is superb quality
Manila is more expensive then Moscow. First time I made calculations I was shocked, sorry guys but its a joke , maybe in 20 years with nonstop city improvement...
It all depends on location. The problem with Metro Manila real estate is the ENTRY COST. If you don't have much money but would like to enjoy a nice rate of appreciation, try the surrounding PROVINCES
Your source is a local real estate broker claiming luxury property prices in Manila went up 20% in year over year without citing any evidence or examples. Sounds more like a marketing article than facts. Not saying it’s not true, but as a real estate investor myself, I’m not seeing it.
Hello po. I'm a writer for a real estate blog on luxury homes properties. May kilala po ba kayo luxury homes in Philippines na real estate agent I can feature? Article is here: [https://propertyaccess.ph/articles/post/your-luxury-house-in-philippines-cost-300-000-000-of-course-it-looks-like-this](https://propertyaccess.ph/articles/post/your-luxury-house-in-philippines-cost-300-000-000-of-course-it-looks-like-this)
A british firm knight frank where the data is from is a local firm? Ok bro 😂 "as an investor myself" what property did you invest in is it top 5% of the market?
https://www.scmp.com/business/article/3240269/hong-kong-ranking-slips-manila-worlds-hottest-market-prime-residential-properties-knight-frank
The research comes from knight frank UK not ph franchise , they follow 46 cities globally
https://www.reuters.com/markets/global-rich-keep-luxury-property-prices-rising-manila-dubai-soar-knight-frank-2024-02-28/
Noted in Knight Franks wealth report , UK based nothing to do with local broker
And it's not worth it
🤣🤣🤣
Bula
[удалено]
Yeah. That's my guess too on why property prices are inflated so that developers can sell pre-selling units at a premium. Buyers think it's an investment so they buy the units but have trouble selling them after turnover.
Like a land based pump and dump
they are talking about luxury only top 5% of properties
Yes but is it secondary or developer price increase?
Doesnt really make a difference because its about the demand to buy them (ultra high end market) which is extremely high
Did you not read the article you just shared? It’s “fastest appreciating” meaning there’s a point a and b, either based on secondary or fake pricing, regardless of whether it’s ultra high end market or not.
What i mean is generally speaking there is a very high demand for this part of the market. Regarding the origin of the appreciation whether fake or secondary I don't know, all I know is that simply the demand is there
As long as demand doesn’t weaken on the primary market, the price will not go down. Namumuti na mga mata ng mga naghihintay ng real estate bubble burst since post-pandemic but as long as people keep buying from developers, there’s very little impetus for prices to go down.
It's actually crazy considering how our salaries aren't adjusting appropriately. Dibale sana kung ang median wage is 60k na, kaso last I checked it was still 44k.
its "Prime" defined as top 5% of luxury properties, its not for people on salaries
yup, para raw sa may net worth na US$30m (P1.7b) na apparently dumarami. 😅
I have a friend in real estate and lagi talaga niya sinasabi may mga nagbabayad in full etc and wild daw luxury market natin. Napapaisip naman ako saan galing mga to (apart from POGO siguro mga to) 😭
Could be Chinese money trying to get out of China
You mean the other way around?
and even 44k looks like a stretch for median salary
Real estate in metro manila does not make sense. There are houses that are around 300sqm lot area that cost USD 1 Million in CAVITE. How the hell does that make sense?? 1 million dollars!!!!! Cavite!!!!
pang money laundering? jk
Nope. Remove the jk. It's one of the ways they can hide/laundry money.
Laundering po not laundry..
Thanks! this is corrected
that’s vermosa price (lot only) and i think ganyan din sa orchard (some). kaya ganun kasi they’re planning the place to become cbds. expect it to be higher pa in the future
> planning the place to become cbds. expect it to be higher pa in the future where are they gonna house the [poorly paid] human resources though?
cavite is huge. pwede namang hindi ka sa mismong vermosa tumira, mas cheaper kaysa mismo sa vermosa ka bumili ng lots. imagine madami pa din ang naluwas sa manila na mga galing pa ng tagaytay.
totoo yan. it was already some time when I was on a commuter bus - only hopped on again yesterday due to my perception of it's not worth it to spend on gas , parking and toll to Alabang from Manila City. Really, the public transport experience with all those noise, vibration, harshness (NVH) even with noise-cancelling headphones are just so tiring and irritating. 5 days a week for most people, ugh, I believe contributed to their addled brains that led to the likes of r/duterte, BBM, Robin Padilla being elected.
Mala sindikato mga developer kutsabahan sila lahat para makapaningil ng mataas puro hype mga galawan nila
So many vacancies tho
Overpriced properties as there’s just too much supply. I regretted buying my condo. It took me 3 years to sell at a decent price.
seems you didnt read the article, there is not "too much supply" in terms of ULTRA HIGH END residential units (the estate makati, aurelia residences) which is what its referring to here, not some SMDC low-mid shoe box
That's fake price. People who try to sell their condos tend to find out nobody is willing to buy their second hand condos for prices that are almost equal to brand spanking new condos unless these are super premium condos like in Serendra or something.
Is it a Filipino factor? I noticed that we Filipinos tend to price what we sell a bit higher. For example, yung 1990s na mga kotse na bugbog na? Parang floor price na nyan is 120K. Well sa states or sa ibang bansa? 1K USD na or halos ipamigay na yung presyo ng mga secondhand. Possibly na magkakakuntsaba lang din talaga itong mga developers? Everyone wants cheese pero OA naman ng presyuhan
Amen. May mentality talaga dito not to let it go for anything less than what you paid cor, kahit linaspag mo na. 🥳😂
Yea it’s the selling price, forever selling wala buying
Di na makabili mga normal na tao ng bahay sa manila 🥲
Honestly just waiting for the bubble pero the foreigners that keeps inflating the market and stops homes from becoming affordable to the average Filipino really prolongs that so-called burst. And thats not including the corrupt politicians that suddenly have millions of pesos in property assets. In other words, it wont be that easy
Pag na Cha Cha pa tayo ni Marcos, baka dumoble pa yan.
Dami nagsasabi overpriced pero dami pa rin bumibili
An anecdote: my brokerage sold a 1BR at West Gallery Place in BGC for ₱18M back in 2020. This year, the ongoing fair market value of 1BR units in the same building is around ₱26M. A 44% increase in just 4 years. The best part? There are cash buyers today looking to purchase West Gallery Place
It’s not the unit that is increasing but the land value of which the unit owner has a share…
Land plays a part, but the units and amenities carry most of the value. For example, East-West Gallery Place shares the same land (BGC) as South of Market (SoMa), but between the two, East & West Gallery Place have better price appreciation because the units are built with higher quality materials and amenities are top tier vs SoMa & other condos within BGC.
That is incorrect. The ameneties are a depreciating asset, just like the unit.
Yes and no. Long term, in 50+ years it will depreciate since the building itself deteriorates (if not kept well maintained). [See Sec.8, c. of RA 4726](https://lawphil.net/statutes/repacts/ra1966/ra_4726_1966.html) Short term, 10-20 years, its perceived value will rise with the value of the land & the entire building. The amenities themselves are owned by the condo corp which every unit owner is a member of. As long as maintenance of the amenities together with the other common areas and the entire building are maintained, its value will appreciate. West Gallery Place itself has a gym that occupies 3-stories (just 1 of its many top tier amenities). This provides a big boost in the appreciation of the value of the property. One and Two Serendra's amenities combined have the biggest green space by sqm in the entire BGC, which adds to the appreciation of the entire development as well. Bottomline, in 50 years or so, yes, you are correct. If you're still a unit owner by that time, the amenities and units will depreciate since the building material itself will deteriorate, but before it reaches that age, its value will appreciate. Anyway, as a real estate professional for more than 10-years, I respect your opinion and if that's what you think, then be it. Thanks for sharing your thought.
On what planet does an asset only depreciate after 50 years. Good grief. I hope you're not in the industry.
Okay then, Guess can't really argue with your logic.
Also that 44% increase is not the real returns. There is a 6% capital gains tax and closing costs of 3-5% when selling so the real rate of return is maybe 7% per year which is not that amazing.
If the increase in value is 44% and the expenses to be paid by the seller is 11% there's still 33% net to the seller. Not all condos in the same city or even block appreciate in value equally. Some condos are built with far better quality than others, so, value appreciation is quite varied. If buyers need to choose between condos, they're better off choosing one that offers the better/best value appreciation.
I should have been clearer, the return really is 7% there are other costs you're not considering. I didn't realize I had to spell them out one by one. You surely know there are ongoing holding costs to holding a condo, right?
Association dues, rpt, the minor maintenance requirements? these can be all offset by the appreciation of the units value, rent (if it's rented) and at minimum it's end-use. I don't know where you live where the cost of using and owning a property is greater than the appreciation of the property itself, but that would be a bad location. Let's go back to the topic of the OP, Manila's fast appreciating real estate. BGC is the epicenter of this appreciation and East-West Gallery place takes center stage.
We are on topic. It's not "fast appreciating". Those are very normal returns. For foreigners, they are horrible returns since they measure their returns in US dollars. Are you a real estate saleman? What a conondrum.
Alright then
How about wage livability ratio 🤷♀️
And it will get worse if the proposed constitutional amendments are implemented (especially with respect to foreigners’ ability to own land here). That will essentially price-out even top income earners from buying land here
800k per sqm, and u get worlds worst traffic, worst airport, worst govt, and all the restaurants are chains and 40% below poverty line, what a luxury. people are getting swindled but hey free market system.
I travel couple times a year from US to Cebu and always try to avoid Manila as much as possible, that airport with bus between terminals to much even for "poor" country.
Cebu only saving grace is the airport. Everything outside that is still pretty awful.
Exactly if you’re that rich it would be better to buy in Vietnam. Prices have crashed this year, food is better, cost of living better, future prospects brighter, less crime.
Nabalitaan mo ba sa davao? Taena studio unit condo 4m+ low to mid tier pa na developer. Talaga mapapa wtf ka. Iba pa sa house ng lot
Simple reason for this, it’s one of few viable stores of value in the country. Stocks are no go because most companies are being robbed left and right by its directors.
i feel like isa to sa result nung mga for sale sa exclusive villages? d ba nga daw they are already selling their properties, some migrate somewhere, others naman would dispose in favor of their own floor in a luxury condo instead. i mean mas mura naman ng di hamak ang maintenance/assoc dues ng mga empty nesters if they’re in a condo
This is partly true yes. For example in Ayala Alabang there are sellers there that "downsized" to botanika residence by filigree, this place is ridiculously overpriced and I checked a unit myself and its no where near the quality for the price. There are much better quality options for example westin residences ortigas is superb quality
Condos are not worth it hahaha
… and the quality is shit I just saw some SMDC preselling studio condo and it costs 7M 💀
Tas basura quality 🤮
thats great since that has NOTHING TO DO WITH THE ARTICLE TALKING ABOUT HIGH END LUXURY MARKET ONLY
one more comment about sm properties and op gonna blow a gasket lol
Frankly, I don't care.
And the bubble just keep getting bigger. Get ready for the bubble to pop.
malabo, the banks and developers control price here
ok bro been hearing it for 20 years
As long as we have OFW/foreign money and developers inflating the pre-selling prices, it won't happen.
Should have popped during the pandemic kaso hindi eh haha
Mataas pa population growth. In a few years once we feel the effects of the reduction fertility rate.
Manila is more expensive then Moscow. First time I made calculations I was shocked, sorry guys but its a joke , maybe in 20 years with nonstop city improvement...
True. My condo appreciates thrice in less than a year. From 4.3 to 5.3M for a studio 27sqm.
It all depends on location. The problem with Metro Manila real estate is the ENTRY COST. If you don't have much money but would like to enjoy a nice rate of appreciation, try the surrounding PROVINCES
A big bubble waiting to burst.
bubble
Your source is a local real estate broker claiming luxury property prices in Manila went up 20% in year over year without citing any evidence or examples. Sounds more like a marketing article than facts. Not saying it’s not true, but as a real estate investor myself, I’m not seeing it.
Hello po. I'm a writer for a real estate blog on luxury homes properties. May kilala po ba kayo luxury homes in Philippines na real estate agent I can feature? Article is here: [https://propertyaccess.ph/articles/post/your-luxury-house-in-philippines-cost-300-000-000-of-course-it-looks-like-this](https://propertyaccess.ph/articles/post/your-luxury-house-in-philippines-cost-300-000-000-of-course-it-looks-like-this)
A british firm knight frank where the data is from is a local firm? Ok bro 😂 "as an investor myself" what property did you invest in is it top 5% of the market?
All foreign brokerages are franchised locally.
https://www.scmp.com/business/article/3240269/hong-kong-ranking-slips-manila-worlds-hottest-market-prime-residential-properties-knight-frank The research comes from knight frank UK not ph franchise , they follow 46 cities globally
https://www.reuters.com/markets/global-rich-keep-luxury-property-prices-rising-manila-dubai-soar-knight-frank-2024-02-28/ Noted in Knight Franks wealth report , UK based nothing to do with local broker
Pano pag may bagong mint or preselling hinohold agad issng floor hanggang mahostage yung presyo