News: Manila welcomes increase in real estate investment
Manila welcomes increase in real estate investment
Property-report.com. Published May 30, 2014
The Philippines has experienced a rise in foreign real estate investments after being touted as one of the region’s leading emerging markets for investors, according to Berlin-based property website Lamudi.
Along with Indonesian capital Jakarta’s rising status as a top luxury residential property destination in the last two years, Manila’s improved governance and business transparency has been “increasingly attracting multinational companies” according to the website, “cementing Southeast Asia’s place as one of the world’s emerging property hotspots.”
Based on data collected in the last six months, the report also noted that the Philippines had become a preferred market by investors because of its young demographic and familiarity with Western culture, according to ABS-CBN News.
“[Manila’s] residential, retail and office sectors all present strong investment prospects,” it added.
The Singapore-based Strait Times also reported that several Singaporean firms have recently acquired stakes in some high-profile Philippine companies, signalling that the city-state’s investor confidence in the archipelago is changing.
Last November, an investor group led by Singapore state owned-investment firm GIC and Ayala Corp acquired a 9.9 percent stake in Bank of the Philippine Islands, and this month, Neptune Storika Holdings purchased a 14.4 percent stake in Manila-based Metro Pacific Investments Corp, parent company of housing developer DMCI Homes.
Global property services firm CBRE and high-end developer Megaworld said that one of five luxury condominium buyers in the country are from Singapore, particularly in the Makati central business district, according to the Strait Times.
Analysts also attribute the revitalised investor confidence in the Philippines from the recent credit rating upgrades and stable outlook that it has received from Moody’s, Standard & Poor’s and Fitch Rating agencies.