In an interview following his presentation at the recently held financial management event dubbed, “Money Talks UAE 2016,” Arbues, Ayala Land regional head for North America and the Middle East, said Singaporeans, Japanese and Malaysians are making procurements by the bulk “because they know the Philippine economy is growing and they are banking on it.”
“There is a demand among Asian investors. They are buying by the floors. Sometime in November 2015, a group of Malaysians bought four floors of Ayala Land property. There were also Singaporeans buying three floors,” Arbues said.
“They want to capitalize on the fact that there is economic growth in the Philippines. They are investing now and so when they decide to sell it, they could do so at a higher price,” he added.
Arbues said Ayala Land properties appreciate “anywhere from 10 percent to 20 percent annually.”
We have brands like Avida that have a price increase at almost every quarter,” he said.
HSBC projects the Philippine economy to become the 16th largest in the world, 5th largest in Asia and the largest in the South East Asian region by 2050, according to Multiplan International, a human resource company.
Multiplan also noted that Goldman Sachs estimates the Philippine economy to be the 14th largest in the world also by 2050.
Meantime, Arbues said the demand for real estate in the Philippines has been increasing for the past three to five years because of the economic growth spawned by remittances from Overseas Filipino Workers (OFWs), which stood at US$2.7 billion in December 2015 – a 4.9 percent growth year-on-year, according to latest figures from the Philippine Central Bank; Business Process Outsourcing (BPOs); tourism; and foreign investments.
According to Trading Economics, a global business statistics portal, annual growth rate in the Philippines averaged 5.13 percent from 2001 to 2015.
Arbues said the growth has also been enticing OFWs to invest in Philippine real property for holidays and retirement.
“There is now a desire by overseas Filipinos to reconnect with the Philippines. Filipino buyers from the US and the European countries, they want to go back to the Philippines for retirement,” he said.