Earlier this year, Metro Manila was rated as having the hottest luxury property market in the world by Knight Frank. Luxury home prices rose by 11 percent in 2018 due to a number of factors including strong overseas demand and a fast growing local economy.
In particular, investors have been drawn to the capital in search of strong rental yields. Local experts note that rental returns between six and nine percent are achievable depending on the location and property type with luxury units bringing in higher rents.
In terms of location, Makati continues to stand out. The city remains the country’s business hub and is home to leading corporations along with startups and entrepreneurs that are tapping into the growing number of innovation centers and co-working facilities. It’s estimated that Makati is home to more than 62,000 business enterprises and 1,159 BPO companies and the employees working here have to live somewhere.
With a large, multicultural workforce of locals and expats, it makes sense that more people want an investment condo in Makati. Strong demand from renters and a built-in base makes the city a safer investment destination than other parts of Metro Manila. But before you rush in, here are a few tips to help guide your decision to purchase an investment condo in Makati.
3 tips for buying an investment condo in Makati
1) Pick a good location
Makati itself is a big place and the closer a project is to the central business district, the more desirable it is. Ayala Avenue, known as the Wall Street of the Philippines, is the center of the country’s financial activity. Unsurprisingly, it is also where many people work.
This is important for anyone considering an investment condo in Makati to take into account. People living in the city want to be as close as possible to their workplace, as well as the South Luzon Expressway (SLEX), in order to avoid the notorious Metro Manila traffic jams.
That is why Sen. Gil Puyat Ave is a key address in Makati. It offers easy accessibility to most places in Makati including the SLEX and the soon to be completed Skyway 3 project. Potential renters appreciate the convenience living here provides when compared to other Makati neighborhoods.
2) Act fast
If you want a luxury investment condo in Makati, you will need to act fast. Jan Paul Custodio, Senior Director for Research and Consultancy at Santos Knight Frank, found demand for properties comes from expats and local high net worth individual, two groups that aren’t afraid to move quickly to secure their investment condo in Makati.
That is due to a lack of supply which has caused transaction volumes to decline, but led to an increase in home prices, especially in the luxury sector.
“The (home) price increase was largest in Makati, where less than one percent of floated inventory remains unsold,” Custodio told the Manila Standard. He added that both pre- and post-selling units are being absorbed quickly, leaving buyers less time to act.
3) Find the right product and developer
Filinvest, through its Aspire by Filinvest brand, has experience in developing condominiums that appeal to end-users. Additionally, the homebuilder has a wealth of experience in working with investors. The unique combination of knowledge is something many firms cannot provide.
One of Aspire by Filinvest’s most exciting developments is 100 West. This upscale investment condo in Makati is actually much more than a place to live. It is a residential complex that has been carefully tailored to the lifestyles of the city’s busy professionals.
For starters, 100 West features Scandinavian-inspired residential units that offer a unique style not found elsewhere. In terms of amenities, Aspire by Filinvest has spared no expense by including cutting-edge features such as a meditation garden, yoga studio and multiple deck areas providing refreshing city views.
Convenience at 100 West is taken to the next level with the incorporation of mixed-use space. The development features prime BPO offices, a commercial podium and retail shops designed to make life easier for residents.
All of this ensures renters will want to live here when 100 West is completed. When you factor in the location along Sen. Gil Puyat Ave and the possible achievable rental yields, 100 West is an investment condo in Makati you should consider adding to your portfolio.