Philippines: High Yields on Metro Manila Condominiums

[jans21]

hello guys,

Here's a bit of a press release I got hold of from global property guide.

For those thinking of investing in Asia, it should be quite interesting to know that "The rental returns from letting residential condominiums in central areas of Metro Manila range from 8% to 15% yearly."

This is according to a survey just released by the Global Property Guide.
Obviously, a pattern exists that investors make take advantage of.


" The smallest apartments in each segment earn the highest yields. For instance, studio apartments in the prime areas of Metro Manila can earn around 13%-15%. But the highest returns are available on the smallest studios (30 sq. m.), which earn rental returns of an average of 15.1%. Larger studio condos (40 sq. m.) earn slightly lower returns (12.9%).

The same pattern holds in other condominium segments. One to two bedroom units (measuring 50 – 90 sq. m.) earn around 12%-15%, but the highest returns can be earned on the smaller (60 sq. m.) condos, which earn rental returns of 15%. Larger 1 – 2 bedroom condos (80 sq. m.) earn rather lower returns (11.5%).

“The pattern is unusual,” says Matthew Pollock, publisher of the Global Property Guide. “Instead of a smooth progression from high yielding units to low, we have high to low with high-yielding 'ridges' or 'lumps' at particular apartment sizes - which correspond to the smallest case of a particular number of bedrooms.” "

source: global property guide

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Consider this bit of information also useful:

"Despite a rise in the relative cost of living, Manila is still the cheapest city in the region and the second cheapest in the global ranking. It has a long way to rise before it reaches the cost of living of Tokyo, which is almost three times as pricey."

(Moscow has now outranked New York).

source: Korean Newswire

[Phoenix]

Thanks for the "world news".

"(Moscow has now outranked New York)." I had no idea...

[jans21]

Matt,

That is actually the funny part. I am not sure if they are talking about the cost of living or the real estate business but I'll go check back the source (lost in the bookmarks, lol),

[Max]

Originally Posted by Phoenix

Thanks for the "world news".

"(Moscow has now outranked New York)." I had no idea...

I think that Moscow was the most expensive city in the World for awhile now. At least this is what I used to believe.

[jans21]

In response to this Moscow report I'd like to make an update (about Moscow's real estate) which I will post in another thread. Is that okay?