Are you dreaming of owning an investment property in the Philippines but don’t know where to start? Philippine real estate pioneer Ayala Land is holding an event in Sydney next month to help the next generation of Filipino-Australian property investors.
Australia as a nation is obsessed with property investing as a way to build wealth. This has rubbed off on many Filipino-Australians who have also purchased their first home, mainly in the western suburbs of Sydney.
But with interest rates rising, some have been priced out of the market and can no longer afford the cost of the average house in NSW, which is around $1 million.
Meanwhile, those who purchased their first property a few decades ago are now in a good position to buy their next one and some are thinking of doing so - not in Australia - but in the Philippines.
But where do you start? The Australian Filipina asks the experts at Ayala Land, the award-winning real estate giant founded in the Philippines, to tell us the latest investment trends.
- Tell us why Filo-Aussies should look at Philippine-based properties.
There are a host of reasons and here are just some of them. First, real estate in the Philippines is less expensive compared with other countries. The average cost (in US dollars) per square metre for a 120sqm property for example is only USD$3,952 versus USD$8,783 in Australia.
Second, you benefit from the increase in the value of the property. Philippine condominium (units or apartments, as they are called in Australia) have seen prices rise by an average of 9.3% p.a. from 2007 to 2019. For example, a 30sqm studio in Makati was worth 3.5 million pesos in 2017 but is now worth 7.5 million pesos.
Third, the Philippines boasts a relatively young demographic when compared with Australia. These young professionals are a stable source of renters in the country. While rental income has fallen due to the pandemic, the long-term outlook suggests a recovery in the numbers.
- Why is condominium living a popular form of accommodation in the Philippines?
Living in a condo means transit, work, upscale shops, restaurants, markets and events are all just steps away. You get access to different amenities such as gym, pools, lounge, gaming room and a garden inside the building. Security and front desks also give peace of mind 24/7.
- Can you give a couple of examples of Filipinos investing in units in Manila 10 years ago and how their investment has fared today? How about 20 years ago?
We’ll give you examples from our Ayala Land buyers. A client who purchased a Lerato, Makati Studio Unit, 30 sqm for P3.5 million in 2017 now has a property valued at P7.5 million. Rental income is P28k a month.
Another client who purchased a Solstice, Circuit Makati Unit, 32 sqm for P3.2m in 2013 and current value is at P7.2m. Rental income is P25-30k a month.
For those who want to invest more. A client bought a 2.5 bedroom at the Avida Towers 34th BGC that was 60 sqm. It was purchased in 2013 for P7m and now has a current value of P14 m. Rental income is at P40-60k depending if it’s furnished or unfurnished.
- What are Ayala Land development projects or properties that are currently on offer for Fil-Aussies?
Makati is one of the most enviable estate of Ayala Land and one of our Project is Astela by Alveo, which is located at The Circuit Makati, another estate that is dubbed as Makati's speedway to entertainment. You can start your property investment for as low as AUD$500/ month.
- Are there any special offerings or promo pay terms that prospective investors can take advantage of?
Yes, Ayala Land is holding an information session where you investors can get a chance to know more about the latest offerings and promo pay terms in purchasing their very own Ayala Land property.
5 November 2022
4:00 pm, Saturday
Conference Room 4
Novotel Sydney West HQ
33 Railway Street, Rooty Hill, NSW 2766
Register to reserve a seat:
https://bit.ly/3F1c2V0
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