Genius Posted August 21, 2011 Posted August 21, 2011 (edited) Would it be right that the condo market is now saturated in Cebu ? Over the years, I ve noticed that properties in Manila, especially Makati, are continually launched and that apart from the very few high end developments around legaspi village and rockwell, thatthey struggle to hold their initial prices. Resulting in condo's staying on the market for years on end or being rented out at very reasonable prices compared to the supposed capital value. Obviously, a very illiquid market, usually the reaction to that is dropping the price as I ve been forced myself to realise in the UK, but in the philippines, you see properties on the market for even in Manila and yet, the price does not drop. To my mind, the market is dsyfunctional in the Philippines and whilst I ve often thought it would be nice to buy a 150m condo in the centre of makati, cebu, either the standards are reproacheful or the prices are no cheaper than dubai for example. That really does not make sense to me, especially with the strengthening of the peso. I seriously am confused about the economics of property at the high end in the phils. Anyone, have anyviews? Apart from the usual people dont trust banks and they make good rental investments, because that does not apply to me, as I m offshore banking and do not see the returns after you pay local tax as appealing compared to Western European investments along the same lines. Thanks (if too off topic please move ) Edited August 21, 2011 by Boss Man Moved to appropriate forum Link to comment Share on other sites More sharing options...
Mr Lee Posted August 21, 2011 Posted August 21, 2011 Would it be right that the condo market is now saturated in Cebu ? Over the years, I ve noticed that properties in Manila, especially Makati, are continually launched and that apart from the very few high end developments around legaspi village and rockwell, thatthey struggle to hold their initial prices. Resulting in condo's staying on the market for years on end or being rented out at very reasonable prices compared to the supposed capital value. Obviously, a very illiquid market, usually the reaction to that is dropping the price as I ve been forced myself to realise in the UK, but in the philippines, you see properties on the market for even in Manila and yet, the price does not drop. To my mind, the market is dsyfunctional in the Philippines and whilst I ve often thought it would be nice to buy a 150m condo in the centre of makati, cebu, either the standards are reproacheful or the prices are no cheaper than dubai for example. That really does not make sense to me, especially with the strengthening of the peso. I seriously am confused about the economics of property at the high end in the phils. Anyone, have anyviews? Apart from the usual people dont trust banks and they make good rental investments, because that does not apply to me, as I m offshore banking and do not see the returns after you pay local tax as appealing compared to Western European investments along the same lines. Thanks (if too off topic please move ) Yes IMHO the real estate market in total in the Philippines is weird, and I too feel the condo market is over saturated, but I have found that builders in the Philippines will never drop their prices due to pride, so they would rather they sit empty than lower prices, yet they sometimes offer schemes to buyers to pay out the units over time. Like you, I have seen some over priced second hand condos in some buildings listed for years and with the prices going up yearly, so that always made me scratch my head and wonder why. Before we bought our new condos, we looked at some second hand ones, and found that the people were asking as much, if not more for those, than the new ones. Sometimes we do have to take into account all the upgrades people put in, but if a second hand unit is not a deal, IMO better to buy a new one on no interest terms, if available, unless the second hand unit has view, breeze and other things you cannot find in a new unit. From what I was told, most people would increase the price of their second hand units whenever the price of the new ones went up. The new ones usually go up because the cost to make them, land, concrete etc goes up, and then there is the greed factor added in. IMO most new condos in the Philippines are way over priced, so while I would love to live right across the street from a mall such as Ayala, my wife and I will stay with the ones we own, unless we come across an expat selling because he has to, or really wants to sell. During quite a few conversations with local people who were selling second hand condos, I found that most had nothing better to do with the money they would receive except buy some other properties, so they really did not care if the properties sold or not. The people who were actually interested in selling would reduce their prices when a cash offer was made, and those that did not need the money, would just say the price is the price, take it or leave it. A couple of years ago my wife and I bought a second hand unit in our building from an expat who wanted to sell for a reasonable price, via word of mouth, because the unit was not listed, and I have seen others who bought good deals as well the same way, so IMO if you or anyone interested in buying has cash, then buying second hand units from non locals would be where the best deals might be. Let me close by saying that IMHO no one should buy property in the Philippines unless if need be they are willing to sell it cheap, or hold onto it for a long time, or not be in a rush to sell it when the time comes. I have found that properly priced condos or homes with flexible owners usually sell within one year. When we bought our new condos it was with the thought we would keep them forever and they would become income for my wife once I am gone, yet we have had expats when they visited us offer to buy the units we live in because of the view and how we fixed them up, but with the ridiculous prices other buildings are selling for, we did not wish to sell and had decided to just stay put. Actually my wife and I are quite happy in Winland and feel we made the best choice within our budget. Link to comment Share on other sites More sharing options...
wolf larsen Posted October 2, 2011 Posted October 2, 2011 Ha, I've noticed this too about RE prices in PI. Like Kuya Lee said, one of the main reasons is because people are just parking their money in property. Plenty of those for sale signs you see are just speculative. In the neighborhood I live, I've seen the same properties "for sale by owner" or "rush sale" for 3 years. You talk to the owner and the price they ask is outrageous compared to the rental price. One of the reasons they can do this is because property taxes are very low here. Link to comment Share on other sites More sharing options...
Okieboy Posted November 13, 2011 Posted November 13, 2011 in Davao City they are building condos as fast as they can, i know of one that has all apartments sold and they have not started building yet , they now have another up for sale Link to comment Share on other sites More sharing options...
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