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2-7-2017
2017REAL ESTATE
TRENDS
PHILIPPINES
Company Overview / Description
Hoppler is an online real estate network in the Philippines.
We created our own premium marketplace, and connect to all
other major marketplaces in the Philippines.
We built a mobile deal management system (called Kumita)
that allows real estate professionals in our network to transact
faster, and more efficiently.
Our marketplace, network, and system attracts real estate
professionals to work under our ecosystem, and attracts
prime buyers and renters of real estate to purchase and
rent properties through Hoppler.
Trends Can Change Quickly
P**ina
mo!
• Trends in the Philippines -
Technology
• Trends Abroad
• Trends in Metro Manila
2017 Real Estate Trends
Trends in the Philippines - Technology
Tech empowers brokers to be more like consultants instead of
service providers
In the US, the National Association of REALTORS®’ 2016 Profile
of Home Buyers and Sellers survey
• 87 percent of buyers used an agent last year compared to only
81 percent in 1981.
Trends
1. Data to Drive Decisions
2. Buyers Increasingly Independent in Sourcing Properties
3. Buyers to Seek More Convenience in Payment Processing
4. More Inexpensive Tools to Drive Your Sales
Data to Drive Decisions
Buyers will begin to depend on more on data to drive their
decisions. More data driven information will be published
from online sites.
• - Types of Inquiries
• - Ratings System for Properties
• / - Data on Transactions and
Customer Preferences
Trends in the Philippines - Technology
Data to Drive Decisions
Trends in the Philippines - Technology
Buyers Increasingly Independent in
Sourcing Properties
• Volume in searching for properties online has increased
year over year. Let the buyers find you.
Trends in the Philippines - Technology
66.20
67.95
73.06
75.88
72.08
73.17
73.55
74.61
60.00
62.00
64.00
66.00
68.00
70.00
72.00
74.00
76.00
78.00
2013 2014 2015 2016
House/Condo for Rent House/Condo for Sale
Buyers to Seek More Convenience in
Payment Processing
Property Management Software Electronic Wallets
Electronic and Mobile Payments software have been built over
the past 3 years, which have been more focused on providing
solutions for the real estate transactions.
Trends in the Philippines - Technology
More Inexpensive Tools
to Drive Your Sales
Trends in the Philippines - Technology
Trends from Abroad
1. Countries Investing More in the
Philippines
2. Increase in Tourism
3. Peso Weakening Against Other
Currencies
Japan
• Influx of Japanese based real estate brokerage companies
have set up local offices.
• Increase in serviced offices for Japanese companies
Countries Investing More in the
Philippines
• Partnerships between Filipino
firms and Japanese firms to
offer properties and conduct
roadshows in Japan.
Trends from Abroad
China
• Offshore gaming companies
• Digital marketing companies
• Setting up dormitory style apartments
Countries Investing More in the
Philippines
United States
• However, USA is in a holding pattern for further BPO
expansions
Trends from Abroad
Increase in Tourism
• Several grand opening of long-awaited hotels
• Mass marketing of these hotels to follow
• Will turn into tourist hubs
• Consider marketing around these new tourist hubs in order
to catch potential buyers.
Increase to 6.5 million visitors expected this year.
Shangri-la Fort Savoy Manila Grand Hyatt Fort Novotel Manila Hilton Manila
Trends from Abroad
Peso Weakening Against Other
Currencies
• In February 2015 - PHP 10 million = USD 226,757 (1 USD = PHP 44.10)
• In February 2017 - PHP 10 million = USD 201,450 (1 USD = PHP 49.67)
• Difference of USD 25,306 (11.16% discount)
Trends from Abroad
$226,757
$201,450
$185,000
$190,000
$195,000
$200,000
$205,000
$210,000
$215,000
$220,000
$225,000
$230,000
2015 2017
Peso Weakening Against Other
Currencies
• Potential buyers will wait to purchase if they feel the
Peso will drop more.
• However, those who believe the Peso has bottomed
out, will purchase.
• Be sure to know what your buyer believes, or how you
believe the markets will do
Trends from Abroad
Trends within Metro Manila
1. Downward Trend for
Rental Prices
2. Increase in Short Term
Rental Demand and
Supply
Rental Prices
• Rental rates in BGC slide by 1.5% to PHP848 per sqm a
month from PHP861 per sqm.
• Rockwell rents declined by 1.3% to PHP942 per sqm a
month.
• Colliers sees rents in the business district declining by 5.8%
to 6.1% over this year.
• Rental rates are projected to slide overall by 2% to 4% over
this year.
Source: Colliers International
Trends within Metro Manila
Rental Prices
Source: Colliers International
Trends within Metro Manila
Location As of 2015 2016F 2017F 2018F 2019F 2020F Total
Makati CBD 19,643 4,129 2,675 1,072 598 334 28,451
Rockwell Center 4,159 - 346 492 269 - 5,266
Fort Bonifacio 22,387 5,612 4,842 3,858 3,022 - 39,721
Ortigas Center 16,250 462 1,027 782 570 614 19,705
Eastwood City 7,548 - 988 - 632 - 9,168
Total 69,987 10,203 9,878 6,204 5,091 948 102,311
Forecast Residential New Supply
Rental Prices
Source: Colliers International
Trends within Metro Manila
Trends within Metro Manila
Increase in Short Term Rental
Demand & Supply
• More property management groups
surfaced in 2016, offering Hotel-like
services
• More businesses that provide
complementary services have surfaced
to support short term rentals
Trends within Metro Manila
Website:
www.hoppler.com.ph
Email:
ramon@hoppler.com.ph
Phone:
+63 917 805 1638

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2017 Philippine Real Estate Trends Report

  • 2. Company Overview / Description Hoppler is an online real estate network in the Philippines. We created our own premium marketplace, and connect to all other major marketplaces in the Philippines. We built a mobile deal management system (called Kumita) that allows real estate professionals in our network to transact faster, and more efficiently. Our marketplace, network, and system attracts real estate professionals to work under our ecosystem, and attracts prime buyers and renters of real estate to purchase and rent properties through Hoppler.
  • 3. Trends Can Change Quickly P**ina mo!
  • 4. • Trends in the Philippines - Technology • Trends Abroad • Trends in Metro Manila 2017 Real Estate Trends
  • 5. Trends in the Philippines - Technology Tech empowers brokers to be more like consultants instead of service providers In the US, the National Association of REALTORS®’ 2016 Profile of Home Buyers and Sellers survey • 87 percent of buyers used an agent last year compared to only 81 percent in 1981. Trends 1. Data to Drive Decisions 2. Buyers Increasingly Independent in Sourcing Properties 3. Buyers to Seek More Convenience in Payment Processing 4. More Inexpensive Tools to Drive Your Sales
  • 6. Data to Drive Decisions Buyers will begin to depend on more on data to drive their decisions. More data driven information will be published from online sites. • - Types of Inquiries • - Ratings System for Properties • / - Data on Transactions and Customer Preferences Trends in the Philippines - Technology
  • 7. Data to Drive Decisions Trends in the Philippines - Technology
  • 8. Buyers Increasingly Independent in Sourcing Properties • Volume in searching for properties online has increased year over year. Let the buyers find you. Trends in the Philippines - Technology 66.20 67.95 73.06 75.88 72.08 73.17 73.55 74.61 60.00 62.00 64.00 66.00 68.00 70.00 72.00 74.00 76.00 78.00 2013 2014 2015 2016 House/Condo for Rent House/Condo for Sale
  • 9. Buyers to Seek More Convenience in Payment Processing Property Management Software Electronic Wallets Electronic and Mobile Payments software have been built over the past 3 years, which have been more focused on providing solutions for the real estate transactions. Trends in the Philippines - Technology
  • 10. More Inexpensive Tools to Drive Your Sales Trends in the Philippines - Technology
  • 11. Trends from Abroad 1. Countries Investing More in the Philippines 2. Increase in Tourism 3. Peso Weakening Against Other Currencies
  • 12. Japan • Influx of Japanese based real estate brokerage companies have set up local offices. • Increase in serviced offices for Japanese companies Countries Investing More in the Philippines • Partnerships between Filipino firms and Japanese firms to offer properties and conduct roadshows in Japan. Trends from Abroad
  • 13. China • Offshore gaming companies • Digital marketing companies • Setting up dormitory style apartments Countries Investing More in the Philippines United States • However, USA is in a holding pattern for further BPO expansions Trends from Abroad
  • 14. Increase in Tourism • Several grand opening of long-awaited hotels • Mass marketing of these hotels to follow • Will turn into tourist hubs • Consider marketing around these new tourist hubs in order to catch potential buyers. Increase to 6.5 million visitors expected this year. Shangri-la Fort Savoy Manila Grand Hyatt Fort Novotel Manila Hilton Manila Trends from Abroad
  • 15. Peso Weakening Against Other Currencies • In February 2015 - PHP 10 million = USD 226,757 (1 USD = PHP 44.10) • In February 2017 - PHP 10 million = USD 201,450 (1 USD = PHP 49.67) • Difference of USD 25,306 (11.16% discount) Trends from Abroad $226,757 $201,450 $185,000 $190,000 $195,000 $200,000 $205,000 $210,000 $215,000 $220,000 $225,000 $230,000 2015 2017
  • 16. Peso Weakening Against Other Currencies • Potential buyers will wait to purchase if they feel the Peso will drop more. • However, those who believe the Peso has bottomed out, will purchase. • Be sure to know what your buyer believes, or how you believe the markets will do Trends from Abroad
  • 17. Trends within Metro Manila 1. Downward Trend for Rental Prices 2. Increase in Short Term Rental Demand and Supply
  • 18. Rental Prices • Rental rates in BGC slide by 1.5% to PHP848 per sqm a month from PHP861 per sqm. • Rockwell rents declined by 1.3% to PHP942 per sqm a month. • Colliers sees rents in the business district declining by 5.8% to 6.1% over this year. • Rental rates are projected to slide overall by 2% to 4% over this year. Source: Colliers International Trends within Metro Manila
  • 19. Rental Prices Source: Colliers International Trends within Metro Manila Location As of 2015 2016F 2017F 2018F 2019F 2020F Total Makati CBD 19,643 4,129 2,675 1,072 598 334 28,451 Rockwell Center 4,159 - 346 492 269 - 5,266 Fort Bonifacio 22,387 5,612 4,842 3,858 3,022 - 39,721 Ortigas Center 16,250 462 1,027 782 570 614 19,705 Eastwood City 7,548 - 988 - 632 - 9,168 Total 69,987 10,203 9,878 6,204 5,091 948 102,311 Forecast Residential New Supply
  • 20. Rental Prices Source: Colliers International Trends within Metro Manila
  • 22. Increase in Short Term Rental Demand & Supply • More property management groups surfaced in 2016, offering Hotel-like services • More businesses that provide complementary services have surfaced to support short term rentals Trends within Metro Manila