Though we’re barely finishing half of the year, 2020 already impacted negatively the global economy with the unexpected pandemic. No one was exempted from the effects of the ongoing COVID-19 outbreak.
In our country alone, there are already 7.3 million reported jobless Filipinos in April. For people who still have a job, the social distancing rules and limited public transport makes their lives more difficult. Yet, these are just among the few factors of our economic downturn.
While the Philippine stock market and other equities markets are on a downward trend, the real estate industry remains resilient. According to Santos Knight Frank, the country’s leading real estate services and advisory firm, the real estate industry continues to thrive due to the expansion of BPO companies and strong consumer demand.
The Golden Year To Buy Condominium Units
Despite the obvious ongoing crisis, the demand for condominium units remains high. The young working professionals, high-net-worth-individuals, and OFWs looking for other personal properties or investment are some of the main drivers in the increasing demand for condominium units.
For property seekers who choose to buy and sell, the high demand would not mean an easy find of the right investment. However, if your goal is subletting your unit for continuous cash flow, you should ask the developer first.
Some developers have restrictions regarding subletting. If you have a surplus of cash, 2020 is truly your golden year of opportunity. Many condominiums are on sale from those preferring liquid assets.
Besides finding a low-priced offer, another reason why 2020 is a golden year of opportunity is as the demand for condominiums and associated properties continues to increase, the available space for the developer to construct more buildings diminishes.
Later on, the supply will not cope up with the demand that will become another driver for more expensive properties. So, its better to buy early before the significant increase in property evaluation.
Real Estate Prices Increase Was Still Consistent
The real estate already had a price increase at an average of 5.7% nationally in 2017, the year with the highest increase for duplex houses followed by condominium units. In 2018, luxury homes prices increased by 11.1%.
According to the report by Colliers Philippines, a world-class real-estate company, 8,600 condominium units will be provided quarterly from 2019 to 2021. Though the vacancy rate will remain at 12-13% during this year, the increase in rents will remain the same until 2021.
The high prices are good signs for investors. Despite the global state of the economy, the condominium and the real estate, in general, are still a competitive industry.
Two Main Reasons To Invest On Real Estate Instead Of Stocks
Fortunately for us, the Philippines has one of the best policies concerning real estate. Despite that fact, the same with other investment options, you should not rely purely on luck or you will most likely lose time and hard-earned money. Still, you should put the required due diligence into this industry.
As time passes by, especially now, data shows from different respected real estate companies worldwide on why real estate is a better investment option compared to stocks. There are too many to mention, for the sake of giving you the most essential reasons, here are two that are the most relevant reasons to consider:
1. Real Estate Offers Long-Term Returns Versus One-Time Payouts. Unlike stocks or bonds, you can only sell them and have a one-time return of investment. While you can also do that in real estate, you also have the option of renting out the properties instead to have a steady cash flow every month.
2. Real Estate Cash Flow Can Give You Immediate Income. To be fair with stocks, there is also a cash flow through dividends. Few of them give at least a 4% return, which is better than our current inflation rate of 2.1% as of this May. Though this seems a good return, for most real estate investors, they wouldn’t touch their properties unless they will get a 15-20% return.
By now, you should put great consideration for real estate investments both locally and internationally. As you might notice with our website, we specialize in properties inside the vicinity of Ortigas Avenue as well as the intersecting cities of Pasig City, San Juan City, and Quezon City.
So, if you are convinced with the great potential of real estate as an investment, you might also seek property within our areas of expertise. Also, all of our properties are developed by Ortigas Land, formerly known as, Ortigas & Company.
Why Look For Properties Through Ortigas Land?
As one of the pioneers of real estate in the Philippines, Ortigas Land has already built subdivisions and community facilities around industrial properties that they also developed.
The strategy put in place is that for each property, we make first-class homes and modern amenities that are most attractive for people seeking a comfortable residential living and better business location. Such amenities are schools, hospitals, churches, post offices, police stations, ample water supply, sports clubs, and social clubs.
To make it simpler for you to decide, here are three main reasons why Ortigas Land could provide your next best real estate investment:
1. For over 80 years, Ortigas Land has been the most resilient developer in the Philippines. It stood the test of time and will remain on the business for more decades to come.
2. To strengthen the company more, Ortigas Land also formed a business synergy with the two major industry leaders Ayala Land and SM.
3. Due to the COVID-19 crisis, Ortigas Land now offers the first wellness real estate in the country located in Capitol Commons. The place is conveniently located within walking distance to essential establishments offering food and health supplies.
Now Is The Best Time To Invest
We, at Ortigas Land, are offering never before flexible and pay-lite plans to accommodate your current situation. Investment experts know their history lessons well. They know that profit is made in selling and not buying.
While many are in distress and fear, you might be one of the few who can benefit the most from the ongoing crisis.
Looking for a condo unit around Ortigas? I am Glenn Dineros, a licensed Real Estate Broker with PRC License # 5171. Reach me +63 977 852 3852 or +63 939 588 9352. You may also send your email at inquire@ortigasproperties.com(opens in new tab) so I can help you locate yours.
