Property market luring investors

MANILA, Philippines—Filipinos reluctant to put their money in financial instruments are instead investing in property.

confidence in the property sector had bounced back in the first quarter.

“What I’m seeing now is a good indication of the economy and investor confidence,”. “At the end of the day, if an investor will look at his portfolio, where did he make money? In stocks, he lost money and also in derivatives. In Lehman, he lost money. If you put in banks, you get very little. But in real estate, nobody lost money, so in the first quarter, investor confidence came back.”

Because of this renewed interest, property prices had held up well in the Philippines.

“They did not go down. In fact, we were even able to increase our prices,” he said. “None of the developers reduced prices. Everybody was expecting us to bring down prices but what we did [instead] was suppress the supply, so we were able to maintain prices.”

Another recent trend is an increase in the number of buyers willing to give a higher cash down payment for their property purchases, Ignacio said. in turn, gives higher discounts to those with larger cash payments. the relatively buoyant property market was also due to the fact that the Philippines was not as affected by the global financial crisis as the United States, Japan, South Korea and Europe.

Even if growth in the domestic economic would slow down to 1-3 percent, he said this would still be better than the recession in other countries.
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