just want to share with you a newsletter i did way back in 2006 when i used to do these real estate market updates MONTHLY ! times have changed and since then information overload has affected so much of my activities. anyway, i am gearing up to do these newsletters once again in the near future. take note of my analysis then in 2006 and how the market evolved since then.
thanks to all the correspondents who now provide us with newsletters keeping us all updated on current philippine real estate activities.
August 1, 2006 NEWSLETTER hello everyone, half the year is over and we are now at the third quarter of the year. i would say that it's been really busy but that doesn't necessarily mean profitable. how do you know it's busy ? just look at the classified ads of bulletin today. what used to be 3 to 4 sections is now 8 ! check it out, it's mostly job employments for call centers or business process outsourcing companies. look at them and you will see who is growing and where the business is. in addition, box ads for real estate is now back whereas during the crisis, it was just at the main page of the classified where line ads are. call ins from newspaper advertisement have also gone up. there was a time when no matter how big or how attractive your advertisement was, there were just no inquiries ! for your info, activity it is not the same everywhere. for us real estate brokers specializing in the primer areas of makati, pasig, san juan, quezon city and alabang, we have seen a correction in prices and this time, to the seller's advantage. it is slowly turning into a seller's market. one has to analyze, who the sellers are today. remember, we have had this crisis since 1997 and it is now 2006. property owners that are selling their properties today have weathered the crisis and are not desperate to sell their properties. from 1997 to 2001, property owners who had mortgage, either sold cheap or had their properties foreclosed. some of these were developers, private individuals, and holding companies who had dollar loans and all of a sudden were hit with the devaluation of the peso. from 2001 till 2004 more properties were foreclosed or were paid to the banks ( dacion en pago ). property owner's problem got deeper as they now had to compete with the bank's inventory which at the same time offered financing. this was also the time when the government came out with the SPAV ( special purpose asset vehicle ). naturally, the good assets were sold but more importantly, the banks unloaded their non performing assets. since then, inventory of foreclosed assets were reduced. during this crisis, i got to know who the real investors were and who weren't. there are two kinds of investors. the ones that buy low when there is hardly any activity or the ones that buy higher when there is movement. do you buy low and wait for the unexpected or do you buy high when probability of selling is better ? the sellers we have today have maneuvered whatever they could to keep their assets inspite of the crisis, that's why they are not desperate to sell or give into the buyer's price ! this is what has happened to properties in makati villages namely bel-air, san lorenzo, urdaneta, dasmarinas, and forbes park. by the way, same situation goes for condominiums both in makati and fort bonifacio. property owners either pulled their property out of the market or simply raised their prices ! believe me, there are now so many buyers / investors but not enough inventory to offer at the price buyers are willing to pay. i have had several friends and clients that regret not buying what they believed was not a good deal. so what happens next ? i believe that the trend for market appreciation will continue for the primer areas and that buyers will realize that the best time to buy is either now or was two years ago .......