Home prices, rents to remain weak for 2 years

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    Real estate marketing service provider Juwai IQI said the residential property market in the Philippines is expected to contend with weak prices and rents in the next 24 months.

    Citing an online survey it conducted between September and October this year through 192 Philippine real estate agents, Juwai IQI said the industry expects prices nationwide to rise just 3.2 percent in the next 12 months, while properties in Makati will decline by 3.2 percent.

    Juwai IQI however said the price of properties may begin to climb by 16.9 percent in the fourth quarter of 2022, with Makati City prices rising by 14.8 percent for the same period.

    Rents are expected to go up by 1.9 percent in the next 12 months and by 13.2 percent over the next two years, while Makati’s asking price will decline by 6.6 percent over the next 12 months before rising by 12.3 percent.

    However, the industry expects rents to start a recovery only by the third quarter of next year, before accelerating their increase through the third quarter of 2022, Juwai IQI noted.

    The company added investors and foreign buyers each account for 27 percent of residential pre-sales acquisitions, more than any other buyer group.

    “In Makati City, investors account for 30 percent of all buyers in this segment – the highest of any buyer group,” it said.

    Juwai IQI said foreign demand for local properties remains relatively robust, with “half of agents reporting that mainland Chinese are likely to increase purchases in the fourth quarter of 2020.”

    “Forty-nine per cent of the industry expects offshore gaming-related transactions to increase in the year to come. In Makati City, 56 percent of industry experts expect offshore gaming transactions to increase,” it added.