PH real estate among most profitable in Asia Pacific
By Shadz Loresco, Rappler.com, 10-26-2013
MANILA, Philippines - The Philippine property market is one of 3
players in the Asia Pacific with the capacity to make money, a real
estate services firm head said.
Melo Porciuncula, KMC MAG Group Head of Capital Markets and
Investments, said in a press briefing on Friday, October 25, that
there is a build-up in interest in the Philippine real estate
market because of the prospects of higher yields. Porciuncula said
"in investing in real estate in the Philippines, [an investor
makes] about 7.9% on an average yield," which has a 4% spread over
investing in treasury bonds.
The other two with similar projections are in Australia (Sydney)
and Japan (Tokyo) markets, which are giving off "not even equally
good," but fairly "decent yields." Such potential for gains has
been attracting not only foreign investors, but also those seeking
alternative investments to place their money in real estate.
KMC MAG managing director Michael McCullough said that
the 7.6% economic growth of the Philippines in the first half
of 2013 has helped improve positive investor sentiment in the
country. "Key economic figures signal brighter future for real
estate," McCullough said.
Several of these factors, he noted, are an ever-active
construction industry, the continued expansion of the KPO and BPO
(knowledge and business process outsourcing) sectors, the country's
achievement of investment grade from 3 global credit rating
firms, a very stable political climate, and the increasing flow of
overseas Filipino remittances.
A growing economy coupled with affordable and highly-skilled
labor pool attract international investors, especially those
engaged in KPO and BPO activities, he said. The capital region,
Manila, "remains the best value city to do business" among the 10
Asia Pacific cities they have tracked, McCullough
said. - Rappler.com