Why foreign buyers are snapping up PH luxury condos
If you look back over the past 10 to 15 years, foreign buyers were certainly purchasing property in the Philippines, but it was mainly for investment. Studio and one-bedroom apartments were popular, netted a decent yield, and ensured adequate housing supplies for the young population.
However, in recent years, the Philippines has witnessed a significant surge in foreign investments in its luxury condominium market. Luxury purchases are often made for personal as well as financial reasons, so let’s have a look at the driving factors behind this phenomenon.
Location. The Philippines has a strategic location in Southeast Asia. Its close proximity to China, Japan, South Korea and other regional hubs is enormously convenient, and a burgeoning BPO industry ensures that it is a suitable center for international business. For many professionals, upscale apartments offer a secure and comfortable living space that combines luxury facilities with practicality.
Cultural and economic ties. Many expatriates call the Philippines home, with sizable populations coming from South Korea, Japan, the USA, and China. The country also boasts one of the largest English-speaking populations, along with renowned but affordable English academies and schools.
Quite often, delegates from certain countries wish to do business with those with similar backgrounds and interests, and since the Philippines has a multicultural range of expatriates, it stands to reason that business can be expedited much more quickly. This in turn can fuel the purchase of high end dwellings.
Lifestyle, tourism, dining. The Philippines has always been famous for its pristine beaches, amazing scuba diving locations, and wonderful breadth of natural environments and scenery. What has really sprung up over the past decade or two is a vibrant entertainment, dining, and cultural mix in its larger cities to rival most in the region.
Luxury condominiums are often placed in the heart of these bustling cultural centers. For example, the Grand Hyatt residences by Federal Land, and Aurelia by Shang Robinsons Properties Inc.—both upscale projects—are located within the vibrant township of BGC.
Technology and infrastructure. New luxury condominium projects are usually planned with the latest advances in high-speed internet, smart home features, and sustainable materials and building practices. International property buyers often seek the latest advances in technology and convenience, and luxury condominiums can provide these services.
Positive investment environment. Unlike many other countries in the region, the Philippines allows foreign nationals to own condominium units, provided the foreign ownership in a specified building does not exceed 40 percent. The country has also showed economic resilience and positive signs for growth.
Another positive measure is the stability and reputation of the country’s top-tier property developers. During the Covid lockdowns, many property developers didn’t even cut any staff, and the quality of new luxury projects are world-class.
Due to exchange rates and the cost of living in cities like Tokyo, Singapore, or Hong Kong, luxury condominiums in the Philippines can be acquired at a fraction of the price without skimping on amenities or services. If the goal is to purchase a luxury apartment for investment, rather than personal use, tenancy services are offered by many premium property developers.
With more luxury property developments in the pipeline, the high end trend will certainly continue to shape the future of Manila’s skyline.
