Why Real Estate Investments in the Philippines Provide High Returns and Strong Rental Demand
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This document provides an overview of real estate investments in the Philippines. It discusses how property prices in the Philippines are among the most affordable in Asia. Rental rates for offices, retail, and residential properties have been rising in recent years. The document also outlines the benefits of investing in Avida Towers, such as guaranteed rental income from managed properties and affordable payment terms. Overall, the document promotes real estate, specifically Avida Towers properties, as a smart investment opportunity in the growing Philippine market.
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Why Real Estate Investments in the Philippines Provide High Returns and Strong Rental Demand
- 2. Why Real Estate? Bryant William J. Cuison
- 3. The Purchase of Real Property FULFILLMENT OF A DREAM FOR INVESTMENT
- 4. Avida Towers Cebu 35% 65% End User Investor
- 5. A CLOSER LOOK AT REAL ESTATE INVESTMENTS IN THE PHILIPPINES
- 6. $19,323.00 $16,728.00 $13,855.00 $12,913.00 $7,112.00 $6,932.00 $3,750.00 $3,300.00 $3,204.00 $2,182.00 $1,781.00 Hong Kong Singapore Japan India Taiwan China Cambodia Thailand Philippines Malaysia Indonesia Source: Global Property Guide 2012 Philippine Property are largely undervalued!
- 7. Source: Global Property Guide, 2012 Philippine Properties: One of the best in value & rental yield in the world
- 8. Rents falling Decline slowing Rents rising Growth slowing Singapore Hong Kong Osaka Sydney, Australia Perth Manila Shanghai Shanghai OFFICES Rents falling Decline slowing Rents rising Growth slowing Singapore Kuala Lumpur, Malaysia Sydney, Australia Tokyo Manila Shanghai RETAIL Kuala Lumpur, Malaysia Rents falling Decline slowing Rents rising Growth slowing Shanghai Jakarta Manila Kuala Lumpur, Malaysia Singapore Hong Kong RESIDENTIAL Rental rates are rising! Source: Jones Lang La Salle’s Rental Property Clocks, 1Q12
- 9. Source: Colliers International Philippines Research REAL DEMAND FOR RENTAL PROPERTIES
- 10. Residential Rental Rates Makati CBD & BGC RESIDENTIAL RENTAL RATES (PER SQM)
- 11. New Condominium Supply Source: CBRE
- 12. Why Invest Now?
- 13. NOW P30,000 Monthly Income P1,500,000.00 Property P60,000 Monthly Income P2,500,000.00 Property P9,000.00/MONTH P24,000/MONTH 2005 P30,000 Monthly Income P750,000.00 Property P60,000 Monthly Income P1,400,000.00 Property P150,000.00 DP P300,000.00DP PROPERTIES ARE NOW AFFORDABLE
- 14. before 20%-30% Down Payment P2,000,000.00 DP: P600,000.00 Balance through Bank Financing NOW As low as 5% Down Payment P2,000,000.00 DP: P100,000.00 Balance through Bank Financing
- 15. Real Estate is made more affordable 20% Downpayment spread in 36 months P1,500,000.00 DP: P9,000/month Balance through Bank Financing (P14,000.00/month)
- 16. Source: Bangko Sentral ng Pilipinas Jan Feb Mar Apr May Jun Jul 00 01 02 03 04 05 06 07 08 09 10 2011 High 15.57 15.31 10.43 10.75 12.08 11.06 10.15 8.59 9.45 9.25 8.7 7.38 7.6 7.52 7.46 7.34 8.2 8.22 Low 12.87 13.67 8.69 8.82 10.07 9.05 8.3 6.85 7.54 7.31 6.55 5.29 5.52 5.37 5.35 5.27 6.02 6.06 0 2 4 6 8 10 12 14 16 18 InterestRates Philippine Lending Rates (2000-July 2011)
- 18. AVIDA TOWERS MAKATI WEST STANDARD SEMI-FURNISHED FULLY-FURNISHED Studio 12,000-13,000 15,000-17,000 18,000-22,000 1 Bedroom 18,000-20,000 21,000-23,000 24,000-30,000 2 Bedroom 23,000-25,000 26,000-30,000 31,000 & Above Parking 4,500 AVIDA TOWERS SUCAT / AVIDA TOWERS NEW MANILA STANDARD SEMI-FURNISHED FULLY-FURNISHED Studio 10,000 15,000 20,000 1 Bedroom 15,000 20,000 25,000 2 Bedroom 20,000 25,000 30,000 Parking 4,000 AVIDA TOWERS SAN LAZARO STANDARD SEMI-FURNISHED FULLY-FURNISHED Studio 10,000 15,000 20,000 1 Bedroom 18,000 24,000 27,000 2 Bedroom 25,000 30,000 35,000 1 Bedroom Loft 23,000 27,000 30,000 2 Bedroom Loft 35,000 38,000 42,000 Parking 4,000 Income from Rental Properties
- 20. Price Range Unit Type Area No. Of Units Mix % Range Studio 22.62- 23.87sqm 432 69% P1.8M- P2.0M 1-Bedrooom 40.91- 41.84sqm 135 22% P3.1M-3.9M 2-Bedroom 56.58-56.82 54 9% P5.2M-5.3M Parking Units 952K
- 21. Payment Terms Unit Type Pay-term Monthly payment Studio Spot 10%, 10 in 24 months, balance bank-fin For as low P8,000/mont h 1-Bedrooom Spot 10%, 10 in 24 months, balance bank-fin For as low as P16,000/mon th 2-Bedroom Spot 10%, 10 in 24 months, balance bank-fin For as low as P20,000/mon th Other easy-payment terms available
- 22. Thank you.
Editor's Notes
- How many of Avida’s buyers are investing in Real Estate? BIS
- How many of Avida’s buyers are investing in Real Estate? BIS
- Average per square metre (sq. m.) prices in US$/€ of 120-sq. m. apartments located in the centre of the most important city of each country, either the: Administrative capital; and/or Financial capital; and/or The centre of the rental market Residential square metre prices published by the Global Property Guide are based on in-house research, using a simple method we systematically scan web advertisements, looking at offers for sale, and offers for rent, of resale apartments and houses. Properties are in excellent condition, with good facilities, and have been refurbished or redecorated within the last five years. Newly-built and pre-sale property prices are not included. Buyers should expect the prices of new properties to be higher than house prices published by the Global Property Guide. According to Global Property Guide, Philippine properties are largely undervalued and as a matter of fact, one of the cheapest places in Asia to invest in real estate properties.
- The gross annual rental income, expressed as a percentage of property purchase price. This is what a landlord can expect as return on his investment before taxes, maintenance fees and other costs. Across the world, the Philippines belongs to the top ten counties where gross rental yield is at its highest.
- Rental rates-offices, retail and residential are continually increasing in the Philippines compared to more mature markets in Singapore, Australia, Hong Kong and Japan.