PH real estate among most profitable in Asia Pacific
MANILA, Philippines – The Philippine property market is one of 3 players in the Asia Pacific with the capacity to make money, a real estate services firm head said.
Melo Porciuncula, KMC MAG Group Head of Capital Markets and Investments, said in a press briefing on Friday, October 25, that there is a build-up in interest in the Philippine real estate market because of the prospects of higher yields.
Porciuncula said "in investing in real estate in the Philippines, [an investor makes] about 7.9% on an average yield," which has a 4% spread over investing in treasury bonds.
The other two with similar projections are in Australia (Sydney) and Japan (Tokyo) markets, which are giving off "not even equally good," but fairly "decent yields."
Such potential for gains has been attracting not only foreign investors, but also those seeking alternative investments to place their money in real estate.
KMC MAG managing director Michael McCullough said that the 7.6% economic growth of the Philippines in the first half of 2013 has helped improve positive investor sentiment in the country.
"Key economic figures signal brighter future for real estate," McCullough said.
Several of these factors, he noted, are an ever-active construction industry, the continued expansion of the KPO and BPO (knowledge and business process outsourcing) sectors, the country's achievement of investment grade from 3 global credit rating firms, a very stable political climate, and the increasing flow of overseas Filipino remittances.
A growing economy coupled with affordable and highly-skilled labor pool attract international investors, especially those engaged in KPO and BPO activities, he said.
The capital region, Manila, "remains the best value city to do business" among the 10 Asia Pacific cities they have tracked, McCullough said. – Rappler.com
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