December 17, 2024 | 12:00am
“This clear policy direction is expected to boost confidence among developers, buyers and investors, encouraging increased market activity over the next 12 to 18 months. As key market indicators stabilize and growth potential strengthens, the sector presents a compelling opportunity for strategic investments.”
MANILA, Philippines — The rate cuts delivered by the Bangko Sentral ng Pilipinas (BSP) are expected to spur the recovery of the country’s property market, according to real estate brokerage firm Leechiu Property Consultants Inc. (LPC).
LPC said the BSP Monetary Board is seen further cutting interest rate cuts aimed at stimulating economic activity and driving the recovery of the Philippine property market.
It said that a strategic easing that is expected to lower rates to 4.75 percent to five percent by year end 2025 would support long-term property market growth.
“The Philippine property sector stands to benefit from continued monetary easing, offering an essential stimulus for economic recovery,” LPC said.
“This clear policy direction is expected to boost confidence among developers, buyers and investors, encouraging increased market activity over the next 12 to 18 months. As key market indicators stabilize and growth potential strengthens, the sector presents a compelling opportunity for strategic investments,” it said.
According to LPC, lower interest rates promote market activity and support long-term capital value protection and growth.
While capital values have remained stable post-pandemic, it said the growth has stagnated.
As such, the real estate brokerage firm sees the continued reduction in interest rates, coupled with broader monetary policy easing, stimulating investment and boosting the property market’s potential for value appreciation.
“We think the next 12 to 18 months is a good time to start entering or reentering the market,” LPC director of investment sales Tam Angel said.
“There will be plenty of opportunities to come in at attractive valuations for investors to be well positioned for a five to seven-year investment horizon in terms of yields and capital appreciation. We particularly like high end residential assets and CBD located commercial properties,” Angel said.
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