Philippines: High Yields on Metro Manila Condominiums

By
Services for Real Estate Pros with Global Property Guide

 

The rental returns from letting residential condominiums in central areas of Metro Manila range from 8% to 15% yearly, according to a survey just released by the Global Property Guide.
 
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.” 
 
Investment plus
Interest rates in the Philippines are at historic lows, making such condominium unit returns highly attractive. At present 364-day T-bills yield less than 3.82%, while interest rates...

 

full article:

http://www.globalpropertyguide.com/articleread.php?article_id=86&cid= 

 

Comments (1)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain in the year 2016!

  Much has changed since your last visit.  We would welcome your return.

Jul 16, 2016 11:07 AM