here’s an article from reuter’s on hongkong’s current real estate property market :
take note that in comparison to the philippines, the fundamentals that affect our economy and real estate market are totally different. hongkong’s property market is geared primarily to the high end buyers ( it’s a fact that it is one of the most expensive place in the world )
the philippines is a service oriented country where we have millions of overseas foreign workers and business process outsourcing companies contributing to a resilient economy we’ve had for quite sometime. they continue to bring in U.S. dollars and other foreign currencies thus providing the much needed liquidity our banks now have. in fact, it costs the banko sentral millions of pesos in order to control the appreciation of the philippine peso.
our local property developers have realized and taken advantage of this opportunity that’s why we’ve seen the trend of property development filling the need for these ofws and call center agents.
i’ve mentioned in my past blogs that some cooling measures should also be adapted to our market, however, what those measures are and when they will be applied remains to be seen. what cooling measures apply in one country may not work in another.
lastly, i’ve summarized the residential lot property values as of july 2013 in one of my blogs and it’s clear that real estate prices are at an all time high. we’ve been waiting for a correction for the last four years but somehow, prices keep breaching new highs. is it because of the economies of the world or is it because the philippines is now considered one of the emerging markets in the world ?