Philippine property prices expected to increase in 2010

26 November 2009

Philippine property yields are expected to remain steady or show a slight increase during 2010, driven by a resurgent Asian economy, forecasts apart-hotel property investment specialist, Asset Property Brokers.

The Chinese economy is predicted to grow by 9% in 2010 with Singapore expanding by 4.3%, Taiwan by 3.7% and the Philippines by 3.2%, according to the International Monitory Fund.

This strong regional economic expansion will push through to the Filipino tourist economy, which is expected to see a return to growth in international tourism, albeit modest, of 1% to 3%, according to the United Nations World Travel Organisation (UNWTO) in its latest Tourism Barometer report.

Asian tourists are expected to pick up the shortfall from Europe and the US tourism from China is growing fast; a 20% increase of Chinese Philippines-bound tourists was reported for January to March this year making the country of 7,102 islands one of the fastest growing international destinations.

John Scott, Asset Property Brokers’ finance director, said: “The Philippines is in an excellent position to boost its tourist economy in 2010 as growth picks up in neighbouring countries. A number of new airline services will also help serve these growing markets from places such as China and Taiwan. This will particularly impact on the vacation home and apart-hotel market.”

At a new apart-hotel golf development on Boracay, Philippines, Asset Property Brokers is offering investors 50 units that comprise studio and two-bedroom apartments, at prices starting at £66,500 and guaranteed yields of up to 14.2%.

The development is located in the established and popular Fairways & Bluewaters Golf and Beach resort, which features a par 72 championship golf course that draws a global guest list.

Long-term bookings from major travel companies have been secured by the management company, Continent Group, which enable it to offer occupancy rates of 80%, underpinning yields for investors.

See Also:   Asset Property Brokers, Marc Da-Silva, Philippines