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^^OFWs should find friends like you. They have been the willing buyers of overpriced condos as developers are very very clever in their marketing and payment schemes.
The delayed turn over is also a marketing strategy. I collapse and rid myself of my Zitan Condo in Ortigas because of the 4 years delay in turn-over. I traded my down payment to a house and lot in Santa Rosa Laguna, Fast forward to now I continue to acquire lands, houses and apartments in Santa Rosa. I do not plan to working in Manila anymore and will just establish a business in Santa Rosa Laguna once I decide to throw in the towel in my corporate job overseas. I hope I will not regret my change of plan from investing in the city to investing in a suburb.
 

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SPEED
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Dear all, I want to get your view and opinion since this topic is burning under my nails for quite a while. I am particularly interested to hear from people who invested in condos and have experience with it. Sorry for the lengthy post, but I finally want to understand the market here.
Short background: I am a German, living in BGC and often wondering to invest in condos in Metro Manila, but so far, some issues have prevented me from that and I finally want to understand it.

I see many interesting developments here, either in BGC, Capitol Commons etc.
However, when I look at the prices as well as the financing of those condos, I wonder (and I mean it):
1. Who can afford to buy that?
2. Who really buys it?
3. Who will be able to rent a condo in the future?

Let's go step by step to explain my questions:

1. When I see the prices of easily 200k per sqm (or even 150k), we are looking at prices of 10mio for 50sqm or even 20mio+ for 100sqm. That is a lot of money. I know, those downpayments are usually relatively low, but what really strikes me are the loan conditions here. Interest rates of 8% seem to be normal.
So le'ts have a little computation
50sqm condo (let's say 1bedroom) for 200k per sqm.
Price: PHP 10,000,000
Interest: 8% => PHP 800,000 per year
Possible rent: 50k?

So for that example, you already pay 66k per month, just for the interest. Isn't that a lot of money? How could you guys afford that? I know it sounds like a funny or silly question, but how many can really pay that from their salaries? Even those simple SMDC condos aren't really cheap, and then you have those high interest rates. And I am surprised those SMDC or Avida condos (or Amaia) are marketed as affordable. I do not find that affordable at all for the average Filipino/Filipina!

2. I am renting a condo in BGC and I would say, that 50% of the apartments in our house are empty, means not rented out. Similar to the neighbor building I am looking at.
So, I understand that many wealthy people from anywhere in the world buy condos and do not really care about it. Ok, point taken. But is that really so often the case? Please educate me here as well.

3. Ok, let's put all the facts from question 1 aside: let's say you are able to finance the condo. But who will rent it later? Yes, the middle class is rising and some well-paid jobs would allow that. But let's keep with my example of the 50sqm condo. I guess you should easily take 50k for rent, right? But who can afford that as well? A couple could live there, yes, but that means still 25k for each of them. And when I see the salaries here, I still wonder who can afford that?

I know, you might mention now, that this is an investment in the future and I also agree that the economy will keep going well and one day the investments are worth it.
But then I want to highlight another confusion I have:

Again, I am German and when I look at property prices in Germany, I am even more shocked about the levels here in Manila. Paying 4-5k USD per sqm is already at the higher end side for Germany. But the fundamental difference is: in Germany, I easily find people who could afford a rent of 50k per month, since the income levels are much higher. And even though I am fascinated and somehow love Manila, I hope everyone would agree that the standard/quality of life (particularly the environment) is much better in German cities.

Lastly, if I am going to buy an apartment in Germany and I also bring around 20% equity, I can get a bank financing with around 1.5%?
Well, yes, we are in the Philippines and the interest rates are higher. Well, but is your salary rising by 6-8% every year? Mine isn't haha.

I hope some experts here could answer me, since I am really excited to find out!
They are just overpriced and not worth it anymore. The developers are getting greedier and greedier, Overpopulation, lack of available land is what's driving the condo prices up. Price to income ratio is terrible and housing should be made affordable for the country's local citizens not for the foreigners and ofws only.
 
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Dear all, I want to get your view and opinion since this topic is burning under my nails for quite a while. I am particularly interested to hear from people who invested in condos and have experience with it. Sorry for the lengthy post, but I finally want to understand the market here.
Short background: I am a German, living in BGC and often wondering to invest in condos in Metro Manila, but so far, some issues have prevented me from that and I finally want to understand it.

I see many interesting developments here, either in BGC, Capitol Commons etc.
However, when I look at the prices as well as the financing of those condos, I wonder (and I mean it):
1. Who can afford to buy that?
2. Who really buys it?
3. Who will be able to rent a condo in the future?

Let's go step by step to explain my questions:

1. When I see the prices of easily 200k per sqm (or even 150k), we are looking at prices of 10mio for 50sqm or even 20mio+ for 100sqm. That is a lot of money. I know, those downpayments are usually relatively low, but what really strikes me are the loan conditions here. Interest rates of 8% seem to be normal.
So le'ts have a little computation
50sqm condo (let's say 1bedroom) for 200k per sqm.
Price: PHP 10,000,000
Interest: 8% => PHP 800,000 per year
Possible rent: 50k?

So for that example, you already pay 66k per month, just for the interest. Isn't that a lot of money? How could you guys afford that? I know it sounds like a funny or silly question, but how many can really pay that from their salaries? Even those simple SMDC condos aren't really cheap, and then you have those high interest rates. And I am surprised those SMDC or Avida condos (or Amaia) are marketed as affordable. I do not find that affordable at all for the average Filipino/Filipina!

2. I am renting a condo in BGC and I would say, that 50% of the apartments in our house are empty, means not rented out. Similar to the neighbor building I am looking at.
So, I understand that many wealthy people from anywhere in the world buy condos and do not really care about it. Ok, point taken. But is that really so often the case? Please educate me here as well.

3. Ok, let's put all the facts from question 1 aside: let's say you are able to finance the condo. But who will rent it later? Yes, the middle class is rising and some well-paid jobs would allow that. But let's keep with my example of the 50sqm condo. I guess you should easily take 50k for rent, right? But who can afford that as well? A couple could live there, yes, but that means still 25k for each of them. And when I see the salaries here, I still wonder who can afford that?

I know, you might mention now, that this is an investment in the future and I also agree that the economy will keep going well and one day the investments are worth it.
But then I want to highlight another confusion I have:

Again, I am German and when I look at property prices in Germany, I am even more shocked about the levels here in Manila. Paying 4-5k USD per sqm is already at the higher end side for Germany. But the fundamental difference is: in Germany, I easily find people who could afford a rent of 50k per month, since the income levels are much higher. And even though I am fascinated and somehow love Manila, I hope everyone would agree that the standard/quality of life (particularly the environment) is much better in German cities.

Lastly, if I am going to buy an apartment in Germany and I also bring around 20% equity, I can get a bank financing with around 1.5%?
Well, yes, we are in the Philippines and the interest rates are higher. Well, but is your salary rising by 6-8% every year? Mine isn't haha.

I hope some experts here could answer me, since I am really excited to find out!
I also have the same thoughts in my mind while I was trying to look for a condo or apartment to rent near my workplace. A good friend of mine who was able to buy new condos for sale in Manila, Philippines explained to me why he keeps on investing in this type of real estate. One is, with the demand for places to live near business centers together with the limited supply makes the rent higher compared to other places where housing is not really a problem for employees. Second is the increase in value for these properties in the future.

But of course, the price of the condo units depends on its location. If you're talking about those that are located in BGC for example, it is expected to be expensive. However, condos that are located in a lesser busy place costs cheaper. Hence, people who buy condos in places like BGC usually uses the opportunity to rent the place in a much higher price then after a few years, sell the unit then invest again.
 

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The delayed turn over is also a marketing strategy. I collapse and rid myself of my Zitan Condo in Ortigas because of the 4 years delay in turn-over. I traded my down payment to a house and lot in Santa Rosa Laguna, Fast forward to now I continue to acquire lands, houses and apartments in Santa Rosa. I do not plan to working in Manila anymore and will just establish a business in Santa Rosa Laguna once I decide to throw in the towel in my corporate job overseas. I hope I will not regret my change of plan from investing in the city to investing in a suburb.

Actually, from what I've noticed. Investing in the outlying parts of an urban center will yield you great results long-term. Because eventually, whatever happens the urban center will have to expand when it becomes full and congested. Similar to how QC was mostly wild undeveloped lands during the days of our parents. But of course, you'd have to project in which areas might the urban center expand to.
 

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Dear all, I want to get your view and opinion since this topic is burning under my nails for quite a while. I am particularly interested to hear from people who invested in condos and have experience with it. Sorry for the lengthy post, but I finally want to understand the market here.
Short background: I am a German, living in BGC and often wondering to invest in condos in Metro Manila, but so far, some issues have prevented me from that and I finally want to understand it.

I see many interesting developments here, either in BGC, Capitol Commons etc.
However, when I look at the prices as well as the financing of those condos, I wonder (and I mean it):
1. Who can afford to buy that?
2. Who really buys it?
3. Who will be able to rent a condo in the future?

Let's go step by step to explain my questions:

1. When I see the prices of easily 200k per sqm (or even 150k), we are looking at prices of 10mio for 50sqm or even 20mio+ for 100sqm. That is a lot of money. I know, those downpayments are usually relatively low, but what really strikes me are the loan conditions here. Interest rates of 8% seem to be normal.
So le'ts have a little computation
50sqm condo (let's say 1bedroom) for 200k per sqm.
Price: PHP 10,000,000
Interest: 8% => PHP 800,000 per year
Possible rent: 50k?

So for that example, you already pay 66k per month, just for the interest. Isn't that a lot of money? How could you guys afford that? I know it sounds like a funny or silly question, but how many can really pay that from their salaries? Even those simple SMDC condos aren't really cheap, and then you have those high interest rates. And I am surprised those SMDC or Avida condos (or Amaia) are marketed as affordable. I do not find that affordable at all for the average Filipino/Filipina!

2. I am renting a condo in BGC and I would say, that 50% of the apartments in our house are empty, means not rented out. Similar to the neighbor building I am looking at.
So, I understand that many wealthy people from anywhere in the world buy condos and do not really care about it. Ok, point taken. But is that really so often the case? Please educate me here as well.

3. Ok, let's put all the facts from question 1 aside: let's say you are able to finance the condo. But who will rent it later? Yes, the middle class is rising and some well-paid jobs would allow that. But let's keep with my example of the 50sqm condo. I guess you should easily take 50k for rent, right? But who can afford that as well? A couple could live there, yes, but that means still 25k for each of them. And when I see the salaries here, I still wonder who can afford that?

I know, you might mention now, that this is an investment in the future and I also agree that the economy will keep going well and one day the investments are worth it.
But then I want to highlight another confusion I have:

Again, I am German and when I look at property prices in Germany, I am even more shocked about the levels here in Manila. Paying 4-5k USD per sqm is already at the higher end side for Germany. But the fundamental difference is: in Germany, I easily find people who could afford a rent of 50k per month, since the income levels are much higher. And even though I am fascinated and somehow love Manila, I hope everyone would agree that the standard/quality of life (particularly the environment) is much better in German cities.

Lastly, if I am going to buy an apartment in Germany and I also bring around 20% equity, I can get a bank financing with around 1.5%?
Well, yes, we are in the Philippines and the interest rates are higher. Well, but is your salary rising by 6-8% every year? Mine isn't haha.

I hope some experts here could answer me, since I am really excited to find out!
Actually I have the same thoughts particularly in the last two years when the prices of real estate properties skyrocketed beyond my expectation. I am not a real estate expert but I am a fan of investing in properties - easiest to get higher returns with lesser risks involved. Looking back, I remember I saw few mid-end condominiums started to rise in Makati around 2005 to 2010 with prices ranging from 3m to 4m for 30sqm to 40sqm (100k per sqm) and in BGC for around 6m (200k psqm). Then 2011 onwards, i started to notice several condo constructions across NCR with pre-selling package as the marketing strategy.

I looked at the price increase over the time of the units being offered by the developers (ayala, megaworld, dmci, smdc).

let’s take price of studio unit (17sqm to 32sqm) in QC as example:
2011 - 2015
Avida: 2.5m to 2.7m
Amaia: 1.5m to 1.8m
SMDC: 1.5m to 1.8m
Megaworld: 6m
DMCI: 1.8m to 2m
Alveo: 4m to 6m

2018-2021
Avida: 5m to 6.5m
Amaia: 3m to 4m
SMDC: 4m to 6m
Megaworld: 7m to 8m
DMCI: 3m to 4m
Alveo: 8m to 10m

Looking at the current prices of real estate, I can’t comprehend how can these be afforded by at least middle class filipinos or even OFWs. If one will refinance a 6m unit (20% equity) with interest of 7.5% per annum for 10 years - that would be circa 53k per month! for 20 years maybe around 35k, but the average rent for studio in QC is 25k to 30k. Let’s say okay we’ll just sell it after 5 years with capital appreciation. However i think that’s the maximum price that a mid-end studio unit can reach.

Price of townshouse, residential lot and house and lot went up also almost tripled in the last 4 years. Average salary of filipinos in NCR is 25k to 30k per month. How on earth are they going to afford these? Even OFWs would struggle to afford the current prices... It does not add up, I am anticipating a bubble crash in the next 5 to 7 years, real estate prices more often than not do self-correction. Thousands of units are being built every year with overpriced tag. Without POGO in the picture, more supply less demand, the market would be saturated and eventually crash.
 

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You are correct even us OFW's can not afford housing in Metro Manila anymore. But they are victimizing a lot of us by offering low down payments then walah. After signing and paying the down payment the unsuspecting OFW will then be brutality awaken by the high monthly bank payment monthly rate and a forth coming forfeiture. Believe me it happened to a lot of people I know. This has already been a norm by real estate developers and banks. That is why if you are a smart Filipino and have the money try to buy as many lots around the suburbs of Metro Manila as surely that will be the next location where Filipinos will dream to have and built a house of their own. Been doing it for awhile now mainly in Binan and Santa Rosa.
 

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SPEED
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real state prices in the Philippines are now bonkers. You compare it to the salaries of people ,who would buy these? maybe overseas Chinese. If you're an investor you would not recoup your investment because of the low rent. terrible terrible for these unrealistic prices and when you go out of your unit or house you're stuck still in third world infrastructure.
 
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real state prices in the Philippines are now bonkers. You compare it to the salaries of people ,who would buy these? maybe overseas Chinese. If you're an investor you would not recoup your investment because of the low rent. terrible terrible for these unrealistic prices and when you go out of your unit or house you're stuck still in third world infrastructure.
I cant believe SM is still able to sell pigeon holes at the price of 11 million peso per unit.
 

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You are correct even us OFW's can not afford housing in Metro Manila anymore. But they are victimizing a lot of us by offering low down payments then walah. After signing and paying the down payment the unsuspecting OFW will then be brutality awaken by the high monthly bank payment monthly rate and a forth coming forfeiture. Believe me it happened to a lot of people I know. This has already been a norm by real estate developers and banks. That is why if you are a smart Filipino and have the money try to buy as many lots around the suburbs of Metro Manila as surely that will be the next location where Filipinos will dream to have and built a house of their own. Been doing it for awhile now mainly in Binan and Santa Rosa.
Don't bother with preselling units, you'll be better of buying foreclosed units. You can still get good prices for foreclosed condos from banks. Some like PS Bank sells foreclosed units at original contract price (from years ago) while others like BDO/BPI sells at 20% above original contract prices. They are just too many on their inventory that they are underselling "market" prices and most of these condos are only 2-5 years old. With the prolonged pandemic, likely their inventory will keep on growing.
 
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