Your Ultimate Guide to Real Estate Investment in 2021
Jumpstart your year with a bang on investment returns this 2021!
Is the real-estate investment going to thrive this year?
Looking back to 2020, we have been confronted by a Black Swan event which temporarily halted the whole world. From global economic contraction to overwhelmed healthcare facilities, the adverse effects of COVID-19 pandemic have put a big hit in every aspect of society.
Despite the gravity of the pandemic, President of Residential in Fontainebleau Development Jim Cohen assures that condo demand is inexhaustible as he told Forbes. Likewise, Leechiu Property Consultants (LPC) Founder and President David Leechiu affirms that real estate properties possess a valuable resiliency amidst the COVID-19 pandemic. For instance, Colliers International Philippines Research Manager Joey Roi Bondoc reported to Inquirer that the first nine months of 2020 sustained the demand for pre-selling condos in Metro Manila in which there were 25,000 units sold surpassing the projected 16,000 condo launches. Therefore, Colliers sees real-estate as a viable investment in spite of the inexorable COVID-19 pandemic.
Real-Estate Investment: Road to Recovery
Based on the article published by Inquirer, the Senior Research Manager of KMC Savills Fred Rara asserts that improvements in the health situation and economic recoveries in North America and Europe are essential means in the assurance of a lasting economic recovery. Apart from that, these factors will affect how business process outsourcing (BPO) revenues and overseas Filipino workers’ remittances will fare in 2021.
On a positive note, the Senior Advisor of Wong + Bernstein Advisory Group Prof. Enrique Soriano told Inquirer that even though revenues are far from the usual, it is still showing a glint of hope that recovery is significantly pulling off slowly. In this manner, it is expected that all real-estate endeavors will be back in the game for the next two to three quarters of 2021.
According to Bangko Sentral ng Pilipinas (BSP), the Philippine economy is projected to have a strong economic rebound. A rebound with a 7.8% growth. Indeed, a positive indicator that the worst is behind us.
In addition, the Governor of Bangko Sentral ng Pilipinas (BSP) Benjamin Diokno said in an online conference hosted by Nomura last August 25th of 2020 that the country should be seen as a safe haven for investments since the “…projections are supported in part by initial signs of recovery.” For example, the gross domestic product is expected to rebound from 4.5-6.6 % in 2020 to a firm growth of 6.5-7.5 % in 2021 and 2022.
Valuable Assets of a Growing Real-Estate Investment
Asia Property HQ affirms that the country is an investment hotspot of property buyers in Southeast Asia since operations and labor costs are cheap.
In an article published by Inquirer, Head of Research and Consulting in Jones Lang LaSalle (JLL), Inc. Janlo delos Reyes believes that business and consumer confidence are key factors in driving economy recovery alongside with the COVID-19 vaccine creation. Likewise, Asia Property HQ further sees that besides the COVID-19 vaccine creation and distribution, the opening of borders will also highly determine how economies and real-estate markets perform. As stated in the Inquirer article, Leechiu Property Consultants (LPC) Founder and President David Leechiu said that “we have every confidence that the rollout of the vaccine in 2021 will create unprecedented market euphoria that will dramatically benefit the real-estate industry.”
The Recovery of the Condo Market
The Chief Executive Officer and Founder of Modern Spaces Eric Benaim told Forbes that he is optimistic that the condominium market will appreciate by the second quarter of 2021. Below are the factors that will drive the real – estate demand in the Philippines.
Are you a discerning investor?
Here are a few things which you can consider before having a real-estate investment in the country according to Asia Property HQ and Colliers International Philippines.
1. Thriving BPO Industry
Owing to the fact that Filipinos were taught to learn English as the country’s second official language, it makes Filipinos one of the most preferred English-speaking talent pools across Asia. Subsequently, foreign companies such as US, UK, and Australia are the ones who invest heavily in the industry.
2. Chinese Investors
It is undeniable that the chinese gamblers have contributed significantly in the economic growth of the country. There are about 100,000 Chinese workers in Metro Manila since September 2016 based on Bloomberg statistics.
3. High OFW Remittance Stream
Due to the influx of OFW remittances, it was evident that the purchasing power towards residential properties of many Filipino families increased.
4. Infrastructure Developments
One of the premium reasons as to why investing in a real-estate is worthwhile because land value never depreciates. The reason for this is the continued infrastructure developments within and outside of Metro Manila.
Colliers International Philippines asserts that developments possess an essential role in the property development sector. Some of the developments include road, airport, and bridge construction. Furthermore, a national budget amounting to PHP 667 billion (USD 13.9 billion) was allotted by the government for Department of Public Works and Highways (DPWH) projects while a PHP 109 billion (USD 2.3 billion) was allotted for Department of Transportation (DOTr). Consequently, this will increase the demand especially for condominium developers in 2021 and beyond.
Apart from getting a rewarding value from a real-estate investment, there are also other great reasons why condominium is one of the best form of investments such as the convenience and accessibility it offers.
Viable Steps for a Real – Estate Investment
In lieu of the foreseen economic recovery, Senior Research Manager of KMC Savills Fred Rara told Inquirer that the evident behavioral changes of people in terms of occupying or using space in this time of pandemic should be expected to affect the real-estate market. This is why there should be necessary adjustments and viable steps in order to sustain a real-estate investment. The viable methods that property owners and developers should consider in the new normal are utilizing attractive payment terms, having integrated development sites and highlighting its premium features, and maximizing technological adaptation or digitization.
a. Utilizing Attractive Payment Terms
Colliers International Philippines Research Manager Joey Roi Bondoc imparts a bright observation to Inquirer. He said that utilizing attractive payment terms will help in recovering the real-estate demand amidst pandemic.
For instance, the payment terms of Camella Manors is considered flexible and affordable. Camella Manors offers various financial arrangements from its pre-selling to ready-to-occupy unit lineups.
What’s more is that the community offers a conservative payment period stretching up to 3 years for the down-payment. Indeed, a conducive target period for the use of the property. Furthermore, its accredited major partner banks offer low rates to the most competitive packages to choose from.
For this reason, it is the perfect time to invest big time in the vertical real – estate community.
b. Having Integrated Development Sites
On the other hand, Colliers International Philippines Research Manager Joey Roi Bondoc further recommends having integrated development sites. A strategy in which the needs and demands of every resident will be met with ease.
Apart from that, Bondoc (2020) highlights the need for developers to consider building their projects outside Metro Manila since cities outside of the metro are already booming because of the thriving Business Process Outsource (BPO) industries.
c. Maximizing Digitization
The Head of Research, Consulting, and Advisory Services Claro Cordero believes that the pandemic has moved the real-estate market into maximizing digitization. Likewise, the Head of Research and Consulting in Jones Lang LaSalle (JLL), Inc. Janlo delos Reyes told Inquirer that real – estate initiatives will remain relevant as long as technological activities are utilized especially in this time of pandemic.
Camella Manors, for instance, offers a convenient online payment facility. This is a way to ensure the health and safety of its residents and future investors.
Camella Manors: An All-in Real-Estate Investment
Due to COVID-19 pandemic, many Filipino families have come home especially to their own provinces. Apart from that, many chose to distance away from the epicenter of the virus which is Metro Manila. Currently, there are 5,005 active cases in Metro Manila. It is significantly higher than the other regions. According to the COVID-19 statistics report of the Department of Health, the regions with high cases are:
- CALABARZON (Region IV-A) – 2,561
- Davao Region (Region XI) – 1,863
- CAR – 1,761
- Central Luzon (Region III) – 1, 711
Hence, it is safe to say that regions outside of Metro Manila are much safer to dwell in.
There are condominiums existing across regions such as Camella Manors. Camella Manors is a mid-rise vertical community nationwide. It is strategically located at the heart of Vista Land’s communicities where lifestyle is within one’s reach. Within the community lies convenience that will definitely meet your needs. In Camella Manors community, you can invigorate your taste buds with a sip of coffee at Coffee Project. On the other hand, you can replenish your daily needs at AllDay Supermarket. In addition, you can decorate or repair your home with the tools coming from AllHome. This is a community where convenience is within reach.
Apart from that, you can rent out your condominium unit with us via our Vista Leasing Services. This is a great passive income where your value really appreciates over time.
What a great form of real-estate investment, isn’t it?
Discover more about Camella Manors and find our affordable condo properties across the Philippines and start earning like no other!