 This market is opening up, and it’s now possible for foreigners to own condos directly. Manila has seen good appreciation over the last few years and the up-and-coming resort destinations of Cebu and Boracay are the places to look this year.
There are many new construction opportunities. Buying pre-construction to flip may make sense, but buying to rent could have more potential. Proposed rental returns for condo-hotel units range from 10% to 12%, which is well above the 5% to 8% return you can typically expect worldwide. These yields won’t hold up long-term, but you can expect these higher than average returns until the market becomes more discovered and purchase prices are pushed up (which will lower rental yields). Meantime, you should see good capital appreciation as well.
The Philippines are less risky than Cambodia and still offer the potential for well above-average returns, both from capital appreciation and rental.
To boost tourism in the region Thailand and the Philippines are pushing for a common visa amongst south-east Asian countries. The move would see a single visas for all 10 member countries of the Association of South-East Asian Nations ASEA Brunei, Indonesia, Malaysia, Singapore, Vietnam, Cambodia, Laos, Myanmar, the Philippines and Thailand.
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