Building confidence in Philippine real estate through fixed income generating properties
A property may look like a bargain, but a low purchase price means little if demand cannot sustain its value.
Prudent investors look beyond the price tag to determine whether people will rent or buy the property, or whether it can generate income and guarantee returns.
That was the message of “Building Confidence in Investing in the Philippines,” a webinar held on Oct. 9 Philippine time (Oct. 8 in the United States), presented by Inquirer Property and Inquirer.net with the Philippine Consulate General in Los Angeles, luxury developer Anchor Land and Property Decision Advocacy.
Purpose for investing
Elizabeth Ventura, Anchor Land president and founder of Property Decision Advocacy, cautioned that “a good price does not necessarily mean a good investment.” Investors, she said, should judge a property by “why people will still want it tomorrow.”
She advised buyers, especially Filipino residents in the United States, to begin by clarifying their purpose for investing—whether rental income, capital appreciation, a future home or retirement—and assess properties against that goal rather than rely on promotional pricing alone.
Ventura also stressed it was best to partner with developers that identified sustainable demand before deciding what to build.
Developers should offer properties that meet identifiable needs rather than assume tenants will come after construction, she explained. She cited leisure and medical tourism, business travel and conventions as drivers for demand in professionally managed residences.
Examining growth drivers
Alejandro Mañalac, vice president for International Affairs at the Chamber of Real Estate and Builders’ Associations Inc. (Creba), also urged buyers to examine whether economic activity could sustain demand.
Infrastructure, logistics, digital services and growth beyond traditional business districts could shape a property’s prospects, he noted. He added that investors needed to consider who might rent or buy the property, how it would be managed, and whether projected returns could remain viable under conservative assumptions.
Arwin Tolentino, Anchor Land’s training director, illustrated the potential of managed rentals with SAVÈA Bay City Manila, the company’s serviced-residence platform at Copeton Baysuites.
He said its pilot operation recorded average monthly occupancy of about 85 percent and average room rates above P7,000. He also presented a lucrative five-year leaseback arrangement for a sample studio unit, which included a stated fixed amount and projected returns.
“These figures that I’m sharing with you right now truly validates that the demand for short-term accommodations like SAVÈA is real and sustainable,” Tolentino noted.
Ventura added that developers, brokers and buyers shared responsibilities beyond the sale, including leasing, property management and continuing support. This is particularly relevant to Filipinos overseas, who may find it harder to inspect or manage their investments personally.
Invest with your head
Consul General Adelio Cruz, representing the Philippine Consulate General in Los Angeles, urged Filipinos abroad to verify property titles, understand taxes and ownership rules, and seek qualified professional advice. He encouraged them to invest “with your head, not just your heart.”
The discussion brought together perspectives on investment, development, demand and rental operations, which can guide Filipinos whether based overseas or locally.
The message for prospective buyers was clear: establish what could sustain demand, scrutinize projected income, account for ownership costs, and verify the terms before committing capital.
A bargain may attract a buyer, but lasting value depends on whether a property can sustain demand and deliver returns.
