How Condos in The Philippines Appreciate in ValueSeptember 2, 2021
How do condos in the Philippines appreciate in value?
- Age and condition of the condo
- Real estate developer reputation
- Supply and demand
- Economic indicators
For many Filipinos, the primary reason for buying a condo is to have a place for them and their loved ones to live in. The good news is that many citizens have also started realizing that buying from the top condos in the Philippines can act as an excellent investment option that garners long-term wealth. But have you ever wondered exactly how condos appreciate in value in the Philippines?
If you buy a condo, you will have both a home and investment vehicle that earns a profit through passive income or selling the entire unit itself for a higher price. But similar to other investments, there are a number of factors that affect how much a condo’s value will appreciate. Continue reading to be informed about what factors affect how condos appreciate in value in the Philippines.
In real estate, the importance of location takes on an even greater meaning when it comes to value appreciation. Not all condo locations are equal. Some locations are highly sought after because they are nearby transport hubs. Likewise, there are condo locations that are within a stone’s throw away from convenience stores, malls, schools, and hospitals.
If you want to improve your chances of owning a condo that appreciates in value, make sure it has a strategic and convenient location. As more nearby infrastructures are developed nearby the condo, more people will want to move into the property. The increased demand drives property prices and value.
Take Kingsquare Residential Suites by Megaworld Manila as an example. Despite the condo being in its pre-selling period, it is expected to garner more demand and value because its location is a premium. It is located in the San Lazaro Tourism and Business Park in modern Manila, which is near major transit hubs, hospitals, and Manila’s University Belt. It is much more convenient for professionals who need to travel to the Makati CBD, Alabang, and Sucat or for families who have children studying within the Manila area to live in Kingsquare Residential Suites.
Age and Condition of the Condo
Age is another factor that determines the appreciation value of a condo. Typically, the newer the property, the more buyers are willing to pay for a condo unit because it will not require major repairs. The fact is that newer condos won’t usually have critical damages in plumbing and electrical wiring, generating more savings for unit owners.
Real Estate Developer Reputation
Properties built by renowned real estate developers generally appreciate in value higher than those that are not. Aside from these developers securing more funds, they have a reputation to protect. They will deliver projects on time and their clients are more likely to be satisfied with their units.
This being said, if you want to make sure your condo appreciates in value, do your research about the developer’s reputation. The best condo developers in the Philippines like Megaworld Corporation are renowned for building large-scale residential projects that drastically appreciate over time because of quality construction and design. On top of that, premium amenities make the condo garner more demand and premium rental yields despite market volatility.
Supply and Demand
The push and pull of supply and demand are major factors that affect condo value appreciation. As a general rule of thumb, if supply exceeds demand, prices will fall. Conversely, when demand exceeds supply, prices will rise.
To make sure your investment survives supply and demand fluctuations, choose a condo that is proven to have high demand no matter what. This can include condos that are located nearby essential establishments.
The overall economic state of the country affects real estate values. This is because economic indicators often influence a person’s ability to buy or sell a home. In the case of an economic downturn, the labor market is affected and homebuyers are less likely to afford a home. The prices will drop.
Alternatively, at a time of booming economic growth, job creation is increased and people earn more money. As a result, they are more likely to buy a new home or invest in a second home. The increased demand will lead to higher property prices.
If you want to have a condo in the Philippines that appreciates in value, make sure to evaluate the current economic state of the country and determine it is the best time to sell your house.
Knowing how condos in the Philippines appreciate in value is the key to getting the most out of your investments. Consider these factors in mind when you evaluate a condo’s long-term investment value.
At Megaworld Manila, we can provide project listings that are guaranteed to appreciate in value. For more information, click here!