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A growing number of investors seeking to buy property abroad are searching in new locations in Southeast Asia at the expense of Europe, according to analysts.
Beth Collingz, of PLC International Marketing Networks, a marketing partner with Pacific Concord Properties Inc., says that new developments in South East Asian markets, such as the Philippines, have "dented" the "overall demand" for property in Europe specially the former eastern block countries of Bulgaria, Poland and Romania.
However, the firm argues that the majority of off-plan-investors have left Europe and have chosen to develop property in the Philippines, increasing the demand for speculative investments in the country rather than houses. Higher returns
Questioned whether would-be holiday home owners ought to consider the Philippines over Eastern Europe, Collingz said: "You get what you pay for and the Philippines has by far the better climate as well as fabulous resources, in terms of infrastructure and leisure facilities. In Eastern Europe they are far away from offering any comparison, Condo Hotel or Condotel Investments in the Philippines were more likely to deliver higher returns than in Bulgaria, Poland or Romania which no longer offer "instant gains".
A would-be real estate investor at a conference in London in April said he'd researched the Philippines property market for five years, considering making a buy. Meantime, prices appreciated, maybe, 200% in that period. The market became too expensive for him and he never did act.
Another investor at a real estate forum, explained that he'd been watching the market in the Philippines, for more than two years but was still uncertain as to whether or where to buy. He lamented the rate of appreciation of property values during those 24 months.
Nonetheless, others are seizing the opportunity to act now.
“My phone has been very busy with buyers from the UK, Scotland and Australia interested in purchasing investment properties and holiday homes here,” says Collingz. “A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, especially UK housing prices, and the easy payment options available for our Condotel Developments, but there are other factors, too. Offshore property investors, foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes.”
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