Factors that Affect House Prices in the Philippines
Purchasing a residential property in the Philippines is one of the most important investments anyone can make. Whether you intend to live in your next home for the long term or sell it later for a profit, it makes perfect sense to want to protect your investment and ensure that its value continues to rise.
Real estate is one of the most reliable assets in terms of increasing value. Experts have observed that residential property prices in the Philippines have continued to rise despite the ongoing Covid-19 pandemic. However, property investment growth is not guaranteed, and it is best to consider the following factors before and after purchasing your home.
Choosing a property located in a decent location is a typical real estate tip, especially when considering the building’s neighborhood. Quality schools, parks, shopping centers, and instant access to major thoroughfares and freeways and amenities such as swimming pool and clubhouse are just a few of the factors that might raise the value of a condo or house.
Appreciation may also be attributed to upcoming neighborhood infrastructures, such as public infrastructures or retail establishments.
Type of residence
The type of house and lot is still heavily influenced by the lifestyle of the people who will live in it. Whether it is a simple bungalow or a house with an elegant finish, the design will have a significant impact on the real house prices.
Detached houses and high-end residences tend to be more expensive if you live a large, high-maintenance lifestyle. Aside from the cost of construction, the fee for the architect who will design your new home will account for a significant portion of the total cost.
However, among all types of residential constructions built in the previous year, single-family houses received the most projects in the housing market.
Demand and Supply
The value of a property is substantially impacted by market conditions. A property’s value will rise if there is a high demand for it in the neighborhood and few available ones. Similarly, if there is little local demand but there are other homes available, the price will also decrease.
Regardless of the situation, looking for homes with an established demand is a smart strategy for investors to weather downturns.
Size and space
Of course, when determining the worth of any home, size will eventually matter. While a house with a sizable lot nearly always comes with a higher price tag, the same is true of a house with a sizable amount of floor space.
Therefore, if you intend to purchase a new home soon but are constrained in the quantity of land you can buy due to financial constraints, you may always attempt to extend your interior space in the future to assist increase your place’s value. This can be done by adding a second level to the house, possibly with a bathroom and another bedroom on it.
Although this will cost money, it is worthwhile to make the necessary renovations and improvements to your property so that you may both live comfortably and increase the value of your investment.
Among the economic elements that can affect house price growth are employment and population growth. The demand for real estate increases as more people become able to buy or invest in them. Property prices must, however, fall as a result of an economic slowdown, such as high unemployment rates and foreign investors leaving the country.
You are probably deciding where to live based on how close it is to where you and/or members of your family go to school or work, as well as top locations such as major cities like Makati City, Quezon City or Metro Manila, hospitals, shopping malls, emergency services, and commercial centers.
This is likely to be one of the ways your home’s value will be determined in the future. The higher the value, the higher the quality of the schools in the community, the greater the availability of employment opportunities in and around its area, and, of course, the closer it is to key commercial and public establishments.
So, when purchasing or investing in the real estate market today, it is critical to consider not only the current features of a property’s location but also whether there are any commercial construction projects or public developments that will create an impact on the house price growth.
Upcoming and New developments
Aside from the current house and lot price, bedrooms size, number of floors, and lot area, investors should also pay attention to upcoming municipal and commercial construction projects, such as those at schools, hospitals, other properties, and facilities. The value of the nearby and similar properties will rise once these infrastructures are constructed in the neighborhood.
Updates and improvements
Speaking of updates and upgrades, while well-kept homes retain their market value well, those that undergo frequent and comprehensive renovations see their property values rise more quickly and significantly. Remember that this is applicable to any property, including homes and lots, that can be enlarged by adding rooms and floors or by purchasing an adjacent lot.
As your house matures and stops being as “new,” updates and upgrades will also be beneficial. The appraised property market value of a home is frequently higher the newer it is. This is due to the fact that important components like the plumbing and electrical are brand-new, making it virtually certain that they will not soon break down and cause an owner to worry.
If you purchased a pre-owned property from the beginning or as your home matures, you need at the very least keep it up to the point where it is “move-in ready.” In particular, this occurs when it has been fixed, updated, and then maintained so that there are no residual issues. Anyone considering purchasing it can move in right away without having to spend money on any necessary home improvements, repairs, or renovations.