The Philippines Housing Market is Currently Suffering as a Result of the Coronavirus-Induced Economic Downturn
The average price of 3-bedroom condominium units in Makati CBD fell by 16.11 percent in 2020, much more than the 1.03 percent drop the previous year. In reality, it was the worst showing since 1998. Philippines housing prices in the CBD dropped 8.7 percent quarter on quarter in Q4 2020.
Philippines’ Housing Prices are Skyrocketing
From 2010 to 2018, the Philippines housing economy experienced a price boom, with Makati CBD prices rising by more than 132 percent (76 percent inflation-adjusted) due to high demand and rapid economic growth. However, due to a weakening domestic economy and the trade war between the United States and China, the housing market slowed sharply last year, with real house prices dropping by 1%. Worse, the coronavirus pandemic last year stalled a long-awaited housing rebound.
Rents and Rental Yields; 6.13 Percent is a Decent Yield
Apartments in Metro Manila are reasonably priced, starting at about $3,952 per square meter.
As a result of the COVID-19 pandemic, the Philippines housing economy shrank by 9.5 percent in 2020 compared to the previous year. The country’s largest contraction since the Philippine Statistics Authority (PSA) began collecting data in 1946. From 2010 to 2019, the economy expanded at a rate of 6.4 percent per year on average.
The IMF predicts that the Philippine economy will rebound this year, with real GDP growth of 6.6 percent.
In Southeast Asia, the Philippines has the second-highest number of COVID-19 cases and deaths.