Name: Santos, Efraim Lemuel M. Instructor/Lecturer: Eduardo F.

Bober, Jr
Section: ARCH31S3 Assignment Title: Housing Laws

The end of the Philippines’ great house price boom?

GLOBAL PROPERTY GUIDE NEWS TEAM | March 26, 2020

Prices of 3-bedroom condominium units in Makati CBD down 1.03% y-o-y in 2019

After eight years of uninterrupted house price rises, the Philippines’ housing market is now cooling rapidly. The average
price of 3-bedroom condominium units in Makati CBD fell by 1.03% during 2018, a sharp turnaround from the prior
year’s 9.75% growth. In fact, it was the first y-o-y decline since 2010. Though quarter-on-quarter, house prices rose
strongly by 8.27% in Q4 2019.

Demand expected to remain stable

Take-up is expected to remain stable in Rockwell Centre, Makati CBD, Bay Area and Fort Bonifacio, mainly driven by
demand from the offshore gaming and outsourcing segments, according to Colliers International.
Makati CBD property prices have risen by almost 132% from 2010 to 2018, amidst strong demand and rapid economic
growth.

Rents, rental yields; good yields at 6.13%

Metro Manila apartment costs are moderate, at around $3,952 per sq. m.

Philippines: typical city center apartment buying price, monthly rent (120 sq. m)

Buying price Rate per month Yield

Metro Manila $474,240 $2,422 6.13%

Recent news: The Philippines’ economic growth slowed to an eight-year low of 5.9% during 2019, following a 6.2%
growth in 2018, mainly due to the delayed implementation of the 2019 national budget and soft global markets caused
by the US-China trade war. Recently, the International Monetary Fund (IMF) maintained its 2020 growth forecast for
the Philippines at 6.3%, even as the COVID-19 outbreak is expected to negatively affect tourism. The government is
even more optimistic, targeting an economic growth of 6.5% to 7.5% this year.
In early February 2020, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, cut the overnight reverse
repurchase (RRP) facility by 25 basis points to 3.75%, in an effort to buoy the slowing economy.

REFERENCE: https://www.globalpropertyguide.com/news-the-end-of-the-philippines-great-house-price-boom-4003