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Cebu property market?


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smokey
2 hours ago, Ozepete said:

The market value of anything is directly related to market demand and that demand is contingent upon the purchasers ability to pay. This Covit19 crisis is going to reduce incomes dramatically and therefore restrict the purchasing power. Prices of real state everywhere will plummet except for those who can afford to hold on for many years.  If you're not selling it doesn't matter but good news for buyers specially early next year unless a vaccine is available very soon and that's not likely

And ability to pay your mortgage which any house over 3 million most likely has no mortgage maybe prices will drop in the 1 to 4 million range  i have not asked everyone but out of the 30 home owners i know in vista i never heard of any making house payments ..  look usa should be good deals after forbearance is over .. the only deals i see here is when people want to leave fast or death  The philippines home ownership process is unlike most of the west

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And ability to pay your mortgage which any house over 3 million most likely has no mortgage maybe prices will drop in the 1 to 4 million range  i have not asked everyone but out of the 30 home owners

Lots of optimism here but none of us has ever been through anything like the sort of economic damage this virus is causing worldwide and its only going to get worse. To sell anything requires a buyer

These are odd times. We haven't had a pandemic since 1918. As a real estate investor I can assure you that " odd"  doesn't necessarily mean " bad".    Don't reject a screaming hot deal just becau

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BossHog

I reckon Smokey's correct here. People have been predicting a crash in Cebu condo prices for decades. It never happens. You have 50% occupied towers and new ones going up everywhere. And yet prices remain relatively stable despite a flooded market of empty boxes. Anyone thinking they'll get a major virus discount on a condo will very likely be disappointed. Sure there's wiggle room but not that much.

Sure it's illogical by Western thinking but pretty much everything here is. It makes sense to them so learn to play their game. The house always wins.

"Ain't no champagne in the champagne room"

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govoner

Real estate companies all round the world are trying to keep the bubble from popping and these guys are no different. Its early days yet ,They had 3-4 months of normality in the first quarter before the shit hit the fan . they even state on their website OFW buying was 40% of sales end of 2019 now its 20%. Will be interesting to see how long the locals can keep the market going with all the headwinds hitting the economy over the next 6 months.

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smokey
31 minutes ago, govoner said:

Real estate companies all round the world are trying to keep the bubble from popping and these guys are no different. Its early days yet ,They had 3-4 months of normality in the first quarter before the shit hit the fan . they even state on their website OFW buying was 40% of sales end of 2019 now its 20%. Will be interesting to see how long the locals can keep the market going with all the headwinds hitting the economy over the next 6 months.

But not here 

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fred42

If you think prices will drop..Wait.
If you think they will remain steady and then rise.. Buy.
 I have observed the property market here for 35 years.. Never seen a drop or property market bubble develop even during and after the Asian economic crisis.
Perhaps it will be different this time but I doubt it.. 
OFW remittances of 30 Billion USD per year may have fallen this year in a big way thats true but most property here is paid for in cash via debts incurred by OFW`s and other Filipinos from  western banks abroad... Not here.
Banks here do not like high risk lending practices..They are old fashioned and match loans with collateral.
 

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RogerDuMond

The property market out here in the province hasn't changed because of Covid and I don't see it changing. It bares no resemblance to western markets. If somebody doesn't get the price they want, they don't lower the asking price, they simply don't sell. Most of the people that own property out here are not the ones that are likely to suffer economic problems from Covid. Basically life goes on as normal out here except that people do quite often wear masks. The only people that aren't working are those who had jobs in Cebu City and commuted.

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BossHog
19 hours ago, RogerDuMond said:
The property market out here in the province hasn't changed because of Covid and I don't see it changing

 

Same here. We live in a kind of resort area but it's also deep province. Speculators have have come in and low-balled some offers on empty resorts. They get rebuffed time and time again. Everyone thinks it's a buyer's market. It ain't. Supply and demand doesn't really apply here. Again, Smokey has it right; the sellers are obstinate and patient.

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Kabisay-an gid
23 hours ago, govoner said:

Real estate companies all round the world are trying to keep the bubble from popping and these guys are no different. Its early days yet ,They had 3-4 months of normality in the first quarter before the shit hit the fan . they even state on their website OFW buying was 40% of sales end of 2019 now its 20%. Will be interesting to see how long the locals can keep the market going with all the headwinds hitting the economy over the next 6 months.

 

Things are no different here in the Philippines?! I'm not sure what alternate reality universe you live in, but Smokey, Roger, Fred and BossHog have a lot of years between them in the Philippines - and I believe they'll be the first ones to tell you that real estate is done  considerably different in the Philippines than most other countries.

I just read on Facebook this week that one of the mass housing projects under development in Ormoc is enacting a major price INCREASE on all their housing units, effective August 1st. So apparently they haven't gotten the word that it's a "buyer's market" and prices are supposedly headed "way down" because of the coronavirus.

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Kabisay-an gid
On 7/23/2020 at 9:47 PM, Rocketman said:

I've been thinking the same thing for 14 years, but the condo market just doesn't seem to drop.  So many condos and so many more being built.  I live in a condo I rent, but will buy now, due to changes in my investment choices.  There are 4 towers and I would guess 50% are empty.  Prices haven't really gone up since they were built 14 years ago.  

 

Prices are going nowhere but up in most of the condo projects I've checked out in Cebu City and Lapu-Lapu over the last several years. My condo in Cebu City cost about 1.6M in 2016 - they're currently selling identical units in my building this year for almost 3M.

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BossHog

We've just raised the price for un-improved jungle land from 2,500 to 3,000 per square meter. I would imagine other people are jacking their prices too. It's counterintuitive sure, but the buyers are still there.

Foreigners and overseas Filipinos are looking for a tropical hideaway to escape the global maelstrom. Rural land in the Philippines might well see a boom.

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govoner
4 hours ago, BossHog said:

We've just raised the price for un-improved jungle land from 2,500 to 3,000 per square meter. I would imagine other people are jacking their prices too. It's counterintuitive sure, but the buyers are still there.

Foreigners and overseas Filipinos are looking for a tropical hideaway to escape the global maelstrom. Rural land in the Philippines might well see a boom.

 

On 7/4/2020 at 7:34 PM, BossHog said:

Well, you're right. There are some 'fire sales' on land right now. The high value stuff like beachfront is holding its value but farmland and simple residential lots have indeed come down in price. No idea about condos.

I'd describe the current real estate market more as stagnant than devalued. There are some bargains out there if you search hard and research the titles harder.

That's Quite A Turnaround In Three Weeks ......

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Ozepete

Lots of optimism here but none of us has ever been through anything like the sort of economic damage this virus is causing worldwide and its only going to get worse. To sell anything requires a buyer and that buyer has to have or be earning the money to purchase. And contrary to the image here, most housing developments and condo projects promote deposit and monthly payments and that is only going to be available to those with capital or those with employment and both groups are deminishing as a result of this pandemic. 

We are in new territory so forget what happened in the past, its history and tomorrow is a mystery! :idontknow:

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Davaoeno
1 hour ago, Ozepete said:

Lots of optimism here but none of us has ever been through anything like the sort of economic damage this virus is causing worldwide and its only going to get worse. To sell anything requires a buyer and that buyer has to have or be earning the money to purchase. And contrary to the image here, most housing developments and condo projects promote deposit and monthly payments and that is only going to be available to those with capital or those with employment and both groups are deminishing as a result of this pandemic. 

We are in new territory so forget what happened in the past, its history and tomorrow is a mystery! :idontknow:

👍👍👍

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smokey

No matter what the reason weather it be virus or death on large scale there will always be those thinking its an opportunity   .. but unlike the rest of the world the philippines is different. Every country that allowed marginal borrowers to buy homes they could barley afford will see discounts  .. even here you will i think see better pricing on the lower end from the 0 down auto and house buyers. So if you were looking for a house and lot and there is a good chance that 3 million peso home will drop to 2.7 .. but the 10 plus houses i don't think so everyone needs a place to live

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BossHog

The banks and investment institutions are so flooded with cash right now it's near unprecedented. People who still earn are constipated with cash and have nowhere to spend it. This will keep the higher end of the market artificially inflated. Lower end different and that's where bargain hunting is to be found. For a third time, listen to Smokey.

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