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Oct 03, 2013

Philippines: yields on large condominiums look attractive


Last Updated: Oct. 03, 2013
METRO MANILA -
Condos
COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
30 sq. m. 81,510 618 9.09% 2,717 20.59
50 sq. m. 132,350 951 8.62% 2,647 19.01
75 sq. m. 196,500 1,534 9.37% 2,620 20.45
120 sq. m. 370,080 2,323 753% 3,084 19.36
Districts researched
Eastwood City , Makati CBD, Ortigas CBD, Rockwell, Global City-The Fort
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Yields in Manila remain good, but somewhat lower than during the past few years (when they were excellent). This does not mean that foreign investors should necessarily rush to invest in Manila, because transaction taxes (known as ‘capital gains taxes, but not actually such), and (if observed) official income tax rates applicable to non-resident investors, are high.

Buying prices for condominiums are at around US$2,000 to US$2,500, though of course it is easily possible to pay more. Unusually, yields are not highest on the very smallest units, which suggests that smaller condominiums are oversupplied. The highest-yielding units are 70 square metre units (which have gross rental yields of nearly 10%). Yields are surprisingly good on very large condominiums (250 square metres), at around 9%, and this may be an optimal size for investment.






Comments

#1 DAN | June 29, 2010

The Philippine market actually has levels of diferent markets.In the condo market, the hot items are the flat condo units selling at 1.3 to 1.8M no evat taxes cause its below the 2.5 range. you go above 2.5 and you will have to pay 12% more. SM development is leading in this segment. The condos are well located and in the city proper. The bi level units are a hit too. 1.5 to 2.4M unfinish units. meaning you will finish the intrior of the condo. These project are all within the city limits making it easy for you to comute arounfd the city in a few minutes or so.

#2 JUN VILLANUEVA | January 02, 2012

P1.8M to P2.5M units is too small but anyways, will see how can I re design the space of 18 to 25 sqms.

#3 YASH | May 26, 2014

May I know who did the rental yield survey of Philippines ???? and for what area or for what projects ?

If is it for Makati CBD or Fort or Rockwell its wrong on all location maximum rental yield is between 5.15% - 6%. Which your website showing is not possible for any part CBD of Metro Manila. Even not possible for any project of any developer. Condos older than 5 years in Makati maximum gross rental is 485 per sqm and after Taxes, Association Dues its around only 341 per sqm. I own condos in all CBDs in Metro manila and all kinds new as well old.

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