Manila has been enjoying strong growth in property prices for some years. The average price of a luxury three-bedroom condominium in Metro Manila for example, rose 13.35 per cent to Q2 2008 from a year earlier. However, inflation has been a major concern and adjusted residential prices were closer to 3 per cent over the year. The main culprits have been spiralling fuel and food prices, driven by the oil price hikes at the start of the year. So while on the surface property prices in Manila may be rising, in real terms the residential sector is entering a slowdown.

The deceleration comes on the back of condo prices rises of an average of 14.2 per cent (11.2 per cent in real terms) in 2007 and rise of 9.3 per cent in 2005 and 2006, (around 2 per cent in real terms), according to data from Colliers International.

The millions of Filipinos living abroad have been a key driver for the economy through remittances, but a pattern of returning ?migr?s investing in Manila property had also been emerging over recent years and the practice helped keep prices buoyant. However, global financial turmoil and the general economic slowdown have meant that fewer expat Filipinos are in a position to invest. Some experts are predicting that if the global financial situation continues to deteriorate, nominal price falls in 2009 can be expected.

Condos in Manila
Under Philippines law foreigners can normally purchase units in a condominium development as long as the foreign component of the building does not exceed 40 per cent. Down payments of around 10-30 per cent are usually required in order to secure purchase and ownership is normally evidenced by the issuance of a Condominium Certificate of Title (CCT).More on buying condos in Manila.

Houses and land in Manila
Foreigners are permitted to own houses although under normal circumstances non-nationals cannot own the land on which it is built. Leases on land up to 50 years renewable for another 25 years are available. More on buying houses and land in Manila.

Renovating
For private residential properties, approval may be required for renovation works. Get the permits before renovation commences. Because a renovation project is a complex process involving subcontractors, workers and suppliers it is advisable to give buffer time for any renovation completion date. It is also important to visit the renovation site regularly to catch mistakes. Those involved in a renovation project should understand the marketability for an onward secondary sale. A decision should also be made early on whether the unit is destined for rental or private use. Renovation costs should be kept lower and furnishing utilitarian and replaceable if the owner plans to rent.

Top tips for Manila property
Guide to buying condos in Manila
Guide to buying houses and land in Manila

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