There has been a growing demand for luxury property in the Philippines, but the scarce supply of land has restricted the supply for such developments.
According to local property news reports, buyers of Philippines properties prioritise more the location over the price of the project. Business districts like Makati and Bonifacio Global City (BGC) remains a hotspot for luxury developments because of its proximity to work and commercial areas.
For instance, Makati properties are selling for an average of 39 units per month, and a tenth of the total supply are high-end residential units.
The beautiful skyline of Makati, one of the biggest business districts in the Philippines
Supply also remains tight because the land volume required for upscale developments should come in bigger proportions. A typical high-end property in the Philippines is around 150 square meters with three to four bedrooms.
Luxury residences also provide higher profits for property developers despite their low-density architecture. It can be estimated that one square meter approximately costs around USD 7000.
Reports also said that luxury property in the Philippines has a stronger demand from foreign investors, which was evident last year. Foreign real estate investment on high-end properties is popular in the country because of the land ownership restrictions for house-and-lot contracts.
Despite this, the future of the high-end residential market remains promising. This is because the Philippines are attracting more property investments from ASEAN region and mainland China.
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