The best time to invest in property was in the past, said Nimrod Flores, broker and blog editor of startup real estate services firm Phil Property Expert, in the firm’s blog titled “Real Estate Investing.”
For instance, Flores cited, the average price per square meter of a prime three-bedroom condominium unit in Makati central business district was only about P65,000 in 2004.
Late last year, the price of the same unit had gone up to about P150,000, Flores said, or a hefty appreciation in market value of 30 percent.
“To put that into a better perspective, let’s say you bought a three-bedroom condominium unit in Makati in 2004,” Flores explained. “Let’s say the total floor area of the unit is 100 square meters. If the price per square in 2004 was P65,000, the total price of your unit would have been P6.5 million. But by 2015, the market value of that unit would have been P15 million already. And if you sold it, then, you would have made P8,500,000 in profits! And that’s not yet counting the money you would have made in rentals if you had your unit rented in all those 11 years.”
Not too late
Flores said the good news is now is the next best time to invest in real estate in the Philippines, with the country opening to more economic opportunities like the integration of the Association of Southeast Asian Nations.
“The Philippines is still underdeveloped for the most part,” Flores pointed out. “And as a developing country, there is still a great opportunity for progress, the room for growth is still very wide, especially with the recently concluded ASEAN integration, which opens up the Philippines into the whole of Southeast Asia for better and less-restricted trade activities.”
Flores said real estate prices are bound to rise in the coming years, and even decades, as the country’s current economic growth means more income for more people and more chances to afford houses.
“There’s a good reason why everyone in the industry is very upbeat right now,” he noted.
“More opportunities are opening up to the people right here in our country, which means more income for them. This consequently means more buying power and elevated standard of living. And we know that having a roof above our heads is one of our basic needs.”