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Housing Shortage

The population of the Philippines has grown steadily over time and reached 108 million in 2019, making it the 13th most populated country. It has a young and growing middle class population concentrated in major cities like Metro Manila. The real estate market has boomed in recent years due to strong economic growth and an influx of demand from Chinese companies, investors, and workers. Looking ahead, the real estate market is projected to continue growing due to factors like increasing purchasing power, a supply shortage, and ongoing demand from foreign investors and companies operating in the Philippines.

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Rhuzz Villanueva Zgir
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102 views

Housing Shortage

The population of the Philippines has grown steadily over time and reached 108 million in 2019, making it the 13th most populated country. It has a young and growing middle class population concentrated in major cities like Metro Manila. The real estate market has boomed in recent years due to strong economic growth and an influx of demand from Chinese companies, investors, and workers. Looking ahead, the real estate market is projected to continue growing due to factors like increasing purchasing power, a supply shortage, and ongoing demand from foreign investors and companies operating in the Philippines.

Uploaded by

Rhuzz Villanueva Zgir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Philippines Population 2019

108,075,955

The population of the Philippines has been steadily growing for


many years. It is the 13th most populated country in the world,
between Mexico and Ethiopia, and grew at a rate of 1.72%
between 2010 and 2015. The 2019 population is 108.12 million,
according to the latest UN estimates.
Philippines Population History

The first census in the Philippines was held in 1591 and recorded a population of just
667,612 people. Japan already had a population of 8 million at that time. The Philippines
crossed the 1,000,000 threshold in the mid 18th century and grew to nearly 8 million by
1900. It has seen steady growth throughout its recorded history until it's impressive
population of today.

In addition to the over 100 million Filipinos living in the Philippines itself, there are
estimated to be around 10.2 million Filipino people living abroad. Many have moved
abroad temporarily to find work, but others have settled abroad permanently.

Given its close ties with America, it is not surprising that the United States is home to
the largest group of overseas Filipinos - over 3.5 million. There are also large Filipino
populations in the Middle East (1 million in Saudi Arabia, 822,000 in the United Arab
Emirates and 204,000 in Qatar), Malaysia (793,000), Japan (182,000) and Australia
(397,000.) Interestingly, only about 42,000 Filipinos live in Spain, the Philippines' old
imperial master.
Philippines has become one of the hotspots for foreign
property buyers in Asia.

With favorable demographics and an increasing


middle class, Metro Manila has undoubtedly
seen the biggest interest. Corporations also
move elsewhere, setting up offices in places like
Cebu and Davao, where operating costs are
lower.
Philippine’s property market in 2017 & 2018: A throwback

Philippines real estate market has boomed in the past years,


following the path of the country’s strong economic growth,
starting from 2010.

Over 70,000 new office spaces were added to the Manila


business districts in 2017, breaking a new record. Still, the
vacancy rates remained low, at around 5%.
Many Chinese companies, especially tech and gambling
companies, have outsourced operations to places like
Metro Manila. There’s been a continuous rise of Chinese
investors, driving the demand for property and
increasing prices.
These companies don’t only buy or rent office space in
business areas like Makati, but also buy residential
properties for their employees. Offshore gaming firms
had a big impact on the exceptionally low vacancy rates
in Manila’s central business district, despite the increase
in supply.

In addition to Manila, these firms move to other cities


like Cebu, having an impact on the local real estate
markets.
Key findings in Metro Manila’s real estate market during the first half of 2018:

Almost 30,000 units (a record high) were taken up in the


preselling sector. It’s expected to cross over 60,000 by the end
of 2018
The high demand is mainly driven by expats, local
professionals and Chinese investors
The vacancy rate for condominiums was around 11%, while
it’s expected to remain at around 12% during coming years
The quarter-on-quarter price increase in most of Manila’s
districts was more than 2%, while the price increase in
upscale areas like Fort Bonifacio and Makati was around 2.8%
How will Philippines’s real estate market perform in 2019?

Overall, Philippines’ real estate market looks bright for


2019, especially if we look at places like Metro Manilla.
The demand is outpacing the supply in almost all major
cities, while the office vacancy rate is less than 5%.

Based on recent figures, as well as previous trends,


many believe that Manila might be one of the best
locations to invest in real estate in Southeast Asia.
There are few countries in the world that had a growth
rate of 6-7% in the last decade. The rapidly growing
economy is driving the real estate sector, with
increasingly more Chinese investors and companies
operating in the Philippines.

We also see an increased purchasing power among


locals.
Future supply of property in the Philippines

According to a recent report published by JLL, many well-known


developers operate in Metro Manila and other NCR cities to provide office
and residential space, meeting the coming demand.

According to JLL, around 2.1 million square meters of office space will be
added until 2020, where a majority will be dedicated to Makati, Pasig, and
Taguig.

Similarly, the same report predicts an increase of 35,000 condominium


units in 2019. Cities like Pasay, Taguig, Makati, and Quezon are expected to
see the highest increase in residential units.
The demand for low-cost housing in the Philippines is
extremely high. Figures suggest that there is
approximately a 5.7 million unit gap in the amount of
housing needed, a number that increases by 100,000
units every year. On top of this, it is estimated by the
National Capital Region that as much as 35 percent of
the Philippines population live in severely
overcrowded conditions. This illustrates a very clear
need for more social housing to be built of all types.
Not only is there a serious shortage of water in Metro Manila.
There is also a serious shortage of land—for residential,
commercial, industrial, warehousing and factory space. Office
and residential housing are also in short supply. Demand is
outpacing supply.
Consequently, land prices, office rent, and residential housing
prices in the national capital have seen the highest increases
in Asia, outpacing the inflation spiral of traditionally
expensive properties in Hong Kong, Singapore and Tokyo.
Key regional hubs like Clark, Cebu, Davao, Puerto
Princesa and San Vicente (the next Boracay) are
experiencing a property boom not seen in the last half
century.
Clark will provide the biggest supply of office space in
the next five years. The resort town of San Vicente
(Palawan) has doubled beach front property prices to
P10,000 per sq.m.
Rudy, a realtor, bought 45 units of condo residences at
SM’s Mall of Asia area. His now rents out the units—
P40,000 a month for 20 square meters; P50,000 to
P55,000 for 32 sq.m.; and P65,000 a month for units
over 32 sq.m. Nearly all his renters are Chinese—
workers in online gaming shops nearby and whose
employment contracts include board and lodging.
Meanwhile, his condo units have appreciated 30 to 50
percent in value. “There are no sellers,” says Rudy.
In the first semester of 2018, a family of five needed no
less than PhP 7,337, on average, to meet the family’s
basic food needs for a month. This amount is the food
threshold.
On the other hand, no less than PhP 10,481, on
average, was needed to meet both basic food and non-
food needs of a family of five in a month. This amount
is the poverty threshold. These are 10.9 percent higher
than the food and poverty thresholds from the first
semester of 20151.

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