Industry observers are expecting more Chinese property investments in the Philippines as investors want a more significant portion of the property market in the country. Also, it is the perfect time to buy properties because of lower real estate prices due to coronavirus.
The country is suffering from the worst economic downturn in three decades. As a result, property prices dropped by as much as 15 percent. Thus, local real estate investors are selling at huge losses.
According to an investment news site, Filipinos fear that they can’t afford to buy any prime property once the market recovers in the future. If the travel restrictions and community quarantine continue, real estate experts expect steeper declines in prices.
Chinese Property Investments in the Philippines
Some Chinese investors are waiting for someone to sell at a lower price. They look at the drop in demand and the rates during the pandemic. It was not the same last year when the real estate market boomed as Chinese buyers grabbed whatever property they can get within Metro Manila and other major cities in the archipelago, according to sportsbook pay per head sources.
Based on sportsbook pay per head providers, it came after President Rodrigo Duterte nurtured closer ties with the Chinese government. He did it in a time when public resentment against the Chinese was high due to their aggression in the South China Sea.
Beijing promised around $45 billion in investment commitments in the country. Also, more than a million Chinese workers and tourists arrived in the country. As a result, it pushed rental rates of apartments and condominiums near the Manila Bay area.
Based on bookie pay per head numbers, there was a 172 percent increase in real estate value compared to 2015. Condominium prices increased by 40 percent in the fourth quarter of 2019 compared to the last quarter of 2016.