CONSISTENT PH ECONOMIC GROWTH
The Philippines outperformed most Asian economies in 2024, posting a solid 5.8% growth in the first three quarters.
Its growth outpaced key regional economies, including Malaysia (5.2%), Indonesia (5.0%), China (4.8%), and Singapore (3.8%). The third-quarter expansion of 5.2% came on the back of robust capital formation and accelerated government spending. The National Economic and Development Authority (NEDA) noted the resilience of the economy, especially in the face of weather-related disruptions such as El Niño drought and severe typhoons, highlighting the strength of the country’s recovery.
It said inflation, which averaged 6.0% in 2023, eased to 3.2% by November 2024, within the government’s target range. The moderation in inflation was led by a drop in rice prices, which fell from 22.5% in June to 5.1% in November, following the implementation of Executive Order (EO) 62 that lowered rice import tariffs.
Opportunities in Metro Manila Condo Oversupply
Recently, Colliers Philippines has shared a report that there is an oversupply of condominiums worth 34-months while this might sound concerning, we see that this could be a temporary correction in the market and a possible shift to “buyer’s market”.
The Metro Manila real estate is known for it’s great capital appreciation with an average of 15% annually in which made the prices really high. While this benefited investors who have purchased properties on the earlier stage this also made it difficult for those who want to invest today.
As there are more properties available in the market, we can see a transition to a market more favorable to the buyers with potential discounted price for the secondary market. During pandemic, the developers also provided discounts and more flexible payment terms than enable the market to pick up.
With the exodus of Philippines Offshore Gaming Operators or POGO which occupied almost 20% of office supplies and around 10% of residential properties, we also see a potential decline in rental rates which offers an opportunity to others.
Ready to invest in the Philippines’ thriving economy and real estate market? Explore opportunities in Metro Manila condos today!
Data extracted in January 2025