Philippines Gross Domestic Product Growth escalates in 2018
When it comes to overseas real estate, most people think of the United States and Australia plus, but in recent years, with the development of the “Belt and Road”, the Southeast Asian real estate market has become a “fever” for investors, and Southeast Asian countries are even more fierce. Tourism, “spurred” growth in housing prices and rental returns have attracted the attention of a large number of investors. Among them, Philippine real estate is the most popular among investors. Today , let everyone take a look at the charm of Philippine real estate.
The Philippines is a typical island country with many islands, so it has a very famous and beautiful seascape, and the tourism industry is very developed. Although the Philippines does not have bordering countries, it is also surrounded by the sea to have a strong maritime trade relationship. The Philippines has trade relations with 150 countries. In recent years, the Philippine government has actively developed foreign trade, promoted the diversification of export commodities and the diversification of the foreign trade market, and the import and export commodity structure has undergone significant changes. The main trading partners are the United States, Japan and China.
The Philippines is a country with extremely rapid economic development in Southeast Asia. The Philippines economy grew by 6.7% in 2017, with an average annual growth rate of 6.3% from 2010 to 2016, mainly due to strong government spending, agricultural recovery and increased exports. According to World Bank data, GDP growth is expected to be 6.7% in 2018 and 2019, and the Philippines economy is expected to remain one of the fastest growing economies in Asia. At the same time, due to the expected rise in oil prices and the impact of the Accelerated Tax and Token Reform Act (TRAIN) signed on December 19, 2017, the inflation rate is expected to rise to 4.3% this year (the highest level since 2011).
In the economic structure of the Philippines, the ratio of agriculture, industry, and service industries (tourism, service outsourcing) in the Philippines is about 20:33:47, and the tertiary industry has a prominent position in the national economy. Each year, Philippine foreign workers import foreign exchange from the country into the Philippines reaches about 21 billion US dollars; annual BPO (outsourcing business) brings about 20 billion US dollars in foreign exchange earnings to the Philippines. Tourism and foreign service services (including BPO) have become one of the main pillars of the Philippine economy.
Since 2010, Philippine housing prices have risen for seven years, and the attractive investment prospects have made all overseas home buyers rush. According to data from the Philippine real estate giant Ayala Land in 2017, the company’s international sales – the combined sales of Filipinos and foreigners abroad – increased by 32% in 2017 to 41.6 billion pesos, accounting for 1220 of the company’s current year. 34% of the total sales of peso, including 9.6% for overseas Filipinos and 24.5% for foreigners.
When it comes to rental returns, the Philippines says it is very proud.
According to a report by the Real Estate Research website Global Property Guide, the Philippines ranks first in terms of rental yields in Asia. The rental yield is as high as 7.51%, and the capital rental rate in Manila is as high as 8.98%. What is this concept? China’s first-tier cities Beijing, Shanghai, and Shenzhen have rental yields below 2%. For example, the same investment of 1 million yuan to buy a house, in Beijing, you can earn less than 20,000 yuan a year; and in Manila, you can earn 90,000 yuan. The provincial tourism areas such as Puerto Galera also gain record returns on property investment.
The rental yield in the Philippines is considerable, and there has been a rising trend in the past two years, and the future potential is unlimited. The rental market in the Philippines is even more hopeful. The rising rents in the year attract a large number of investors to invest, and the average price of real estate in the Philippines is lower than that in other regions. It is the best value for money investment.