Demand for residential properties for investment purposes is expected to rise in the coming quarters, mainly driven by the expatriate market, according to a real estate services firm.
In a report, Jones Lang LaSalle Philippines noted that demand for investment in residential properties is mainly coming from expatriates employed in the outsourcing and offshoring (O&O) sector.
“Interest in residential investment is expected to increase steadily from expatriate employees as O&O firms continue to expand operations in the Philippines,” JLL said.
The report noted sustained growth in overseas Filipino remittances helped drive demand for residential properties in the third quarter of 2016.
“This continued growth in demand was manifested by the steady growth in demand for housing loans,” JLL said.
The Senior Bank Loan Officer Survey of the Bangko Sentral ng Pilipinas (BSP) showed a positive Diffusion Index for housing loans in the third quarter of the year, which implies general growth in demand.
In a separate report, the real estate services firm noted that demand for residential properties would continue in the coming quarters.
“Demand is expected to continue posting positive growth in the coming quarters on the back of continued investment interest,” the report said.
Demand for residential units in the third quarter of 2016 remained stable with about 1,500 residential units absorbed by the market.
JLL downplayed the likelihood of a real estate bubble shaping up in the next few years, as the Residential Real Estate Price index of the BSP showed prices of residential units growing steadily, supported by healthy demand.
“The residential condominium market is expected to sustain upward growth in the next few quarters, although the upcoming volume of supply may keep prices from increasing,” the report added.