The global property firm, Savills, recently released the Asia Pacific Investment
Quarterly for the second quarter of 2017. It contains
significant updates on the investment situations and real estate
market forecasts in the Asia Pacific region.
"The Philippine economy started the
year with a growth of 6.4% in Q1/2017 - performing below market
expectations of 7.0% due to high base effects of election related
spending the previous year. However, the Bangko Sentral ng
Pilipinas (BSP) is expected to continue keeping interest rates low
in order to support further economic growth. Inflation has started
to cool down to 2.8% from its peak of 3.4% in April, giving the BSP
enough room to sustain an accommodative policy stance."
"We are of the view that the window
is narrowing to lock in acquisitions at favorable financing rates.
This can be observed with the large jump in bond issuances in the
first half of 2017, when as much as PHP82 billion was raised during
the period from just PHP15 billion in the year earlier. The top
three developers with the largest CAPEX budgets - Ayala Land, SM
Prime Holdings, and Megaworld - raised almost half the total amount
with PHP39 billion."
To read the full report, click here.