Where & What Costs: Rising Prices on Real Estate Hot spots
Manila, being the business capital of the Philippines, exhibits spontaneous movements with regards to market price when it comes to properties for the past years. This can be seen on major business districts or points where properties are being made and sold from time to time. And as these properties start to congest the place, price starts to go up. Now, this is important for us not only to know if the properties are still affordable but also to identify, if properties on these locations are still worthy to spend on and if there is a promising outcome when investing on these areas.
After only a few years, a significant rise on the prices of condominium properties has been observed on Metro Manila’s central business areas according to experts. It was revealed that the average selling price on projects targeting these areas grew as much as Php50, 000 per square meter. These areas include Makati, Bonifacio Global City (BGC), Ortigas and the Bay Area. This is equivalent to a 7% in growth. Meanwhile, Makati City is on top of all these areas for having the biggest growth rate reaching 92% for only a matter of 5 years which amounts to around 125,000 per square meter before but now values to Php240, 000 pesos per square meter
Despite the massive on the price, studies show that the demand for condominiums on these areas will be able to cope and will also increase continuously. This is evident also to other areas such as BGC and the Bay area even though both have an average exceeding Php150, 000
While Ortigas, even though last on the list still exhibits significant increase on price which is equivalent to up to Php130, 000 per square meter. According businessmen who study these statistics, what the numbers show is not surprising and it will continue on showing increasing results especially with expensive condominiums. Saying that the average priced can even reach even up to half a million pesos.
As of the moment, the cause has been rooted to companies acquiring residence for their employees. The increasing presence of Chinese Nationals especially businessmen can also be considered. But, most importantly, many Filipinos are also now able to purchase and for whatever reason that might be, what’s being observed today is that there is a change on the mindset of the buyers which makes them think that it would still be worth it to buy despite the towering amount of prices. Being on these business areas is important especially now due to the development which is also equivalent to a lot of opportunities for them that is why they still see it as worthy despite the costs.
On the other hand, it is also wiser as early as now to look for other potential location when they aren’t considered a hot spot yet. It would be a very good investment and could bring a generous return of income because we cannot deny the fact that along with the price increase on the current hotspot, is the possibility of space scarcity. Time will come that these hotspots will be filled and can’t cater and it’s the countryside and provinces which will be the next target of investors. This means that is also where all the money will be diverted.