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Déjà vu in Philippine Condotel Real Estate Investments
Condo Hotel Marketing Company sees sustained growth in Philippine Real Estate and Condotel Investments sector despite Global financial crisis
By: Beth Collingz
There seems to be no relief on the horizon as a widespread decrease in economic activity is expected to continue in 2011 as funds to support business activities across all sectors of the global economy dry up. This is not new to the Asian region, where the Philippines is situated. It’s “déjà vu’ for the Philippines with recollections of the 1997 Asian financial crisis remaining all too vivid for affected sectors of the economy such as banking, real estate and construction.
The question to ask now is how will the global financial investment industry move on from this? “It’s back to the basics for 2011 as the remaining liquid investors flock to traditional investment instruments such as direct investments and ownership of real estate. The way to go is revisiting investment opportunities from bricks and mortar businesses or companies which have a physical presence that offers face-to-face customer experiences,”
Hosting their weekly simultaneous web conference with international realtors and estate agents across North America, Australia and the UK on the topic “Effects of Global Crisis and the Philippines, Collingz said developers in the Country are still experiencing good retail sales levels across the board.
Collingz allayed fears of some real estate brokers, sales and marketing agents that the real-estate boom is heading for a bust. “The problem is the mindset of marketing people whom are quick to talk negatives and then force themselves into a box dealing with the wrong mindset and mistaken buyers for their developments and not the global financial crisis that we have no control over.
If you know your trade and you are offering a good product “the market is here to stay so why rock the boat” she said, even as she advised investors to become more astute in their choice of investments. “People have to realize that markets, especially in real estate, go in 10 year repetitive cycles. Compared to today’s situation, on world escalation in fuel and construction material costs, we have had far worse to contend with in the past two cycles the real-estate industry in the Philippines and South-East Asia in general, has experienced. It was by far worse times during the late ’80s and the devastating effects of the Asian financial crisis near the end of the ’90s with a very limited market base” said Collingz.
With the arrival of the internet and communications technology, the whole world suddenly became our market in the Millennium. It is now a global market and with our Condo Hotel developments. In order to maintain sales momentum, current marketing trends simply have to change. If you compare the situation in the late ’80s to today, people forget the telex machine had just become redundant and communication was limited to sending a fax offer to buy real estate. A top of the line computer was Apple IIE. Cellular phones were few and far between and the internet was not even around. Ergo, Philippine real-estate investors were merely comprised of wealthy local Chinese businessmen.
During the late 90’s Asian Crisis, not many people used the internet. Now it’s 2008 and a very different ballgame. Today’s technology, unheard of 15 to 20 years ago, has for the most part contributed to sales and marketing efforts of developers and will continue to do so. It is the communication factor that will drive sales of Philippine real estate upwards through 2011 well into 2015 and beyond said Collingz.
Whilst some agents dwell on the number of Philippine properties bought by Filipinos based in the US has began to fall because of the credit crunch, it is a blow but not significant as there are new investment clients out there and we do not focus on the US as a sole marketplace for our sales said Collingz.
“Global investors are looking to replace failed pension plans and other future saving schemes with a solid investment in real estate. Many are looking for investments that will give them an income for retirement. Savvy investors are now looking for a more solid investment with potential for monthly income and Philippine Condo Hotel investments are ideal because Philippine Hotel rates are the same if not more expensive than those in the US or Europe but the entry level to purchase real estate is only about 20% of what you would have to pay for a Studio in Manhattan” credit crunch or not she added.
There are also indications that the Russians may take up some of the slack. First-time Russian overseas buyers are now looking at South-East Asia and particularly the Philippines. Overseas property specialists have predicted sustained growth in the real estate sector in the Philippines, for the next 5 years.
Further fuelling real estate development is the fact the Philippines remains undiscovered as far as British and many European investors are concerned. Yet because of its close links to the US, English is widely spoken and it is well regarded for its people, affordable living, beaches and diving. It’s a whole new market enthused Collingz. “Buying property here is easier than many people think and investment from overseas in tourism real estate is growing, especially in the resort areas of Cebu and Manila itself where rental potential is good”.
However, anyone considering Philippine Real Estate Investments should move at this moment and lock in at current price levels. Buyers whom reserve now can take advantage of current prices locked in for their units and see an immediate equity return on their investment said Collingz.
Pacific Concord Properties Inc recently launched Guaranteed Rental Income [GRI] Investment Suites for their Lancaster Atrium Condotel development located along Shaw Boulevard, Metro Manila. Philippines.
The Lancaster Atrium Guaranteed Rental Income units come fully furnished, fully fitted to condotel standards with a guaranteed minimum rental income of –Pph-600/sqm per month for 5 years which represents a 6% ROI on the unit purchase depending upon the terms of payment selected by the buyer.
Lancaster – The Atrium Executive Furnished Condotel Studio Suites. Floor Area 28.27sqm [298sqft] Cash Price -Pph-2,873,943.58. Installment Price -Pph-3,221,875.36 [Including Taxes] may be purchased with an initial -Pph-25,000.00 Reservation and Balance Payable without interest over 36 consecutive equal monthly payments -Pph-88,802.89. Lancaster Hotel issues a 5 Year minimum 6% ROI Condotel Rental Guarantee for all Studio Condo Hotel Suites.
The Lancaster Atrium Manila will provide unit owners with premier residential condo units with option of enrolling their units in the Lancaster Condotel Rental Pool which makes the Lancaster Brand a great Investment for Fil-Am's whom visit Manila for Vacations or Business as they can earn Guaranteed Rental Incomes [at current purchase levels] at a minimum 6% ROI per annum for 5 years as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences enthused Collingz.
All units at Lancaster Atrium have basic kitchen facilities. The GRI Condotel units are fully furnished and fitted ready for Hotel rental operations.
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PLC International Marketing Networks, with its internet based Global Agency, are the lead marketing partners with Pacific Concord Properties Inc for the Lancaster Brand of Condotels in the Philippines
Further information on Philippine Condo-hotel investments may be obtained from:
PLC International Marketing Networks
Pacific Concord Properties Inc., Manila Head Office
Shaw Boulevard, Mandaluyong City.
Metro Manila. Philippines
Pacific Concord Properties Inc., Cebu Office
Lapu-Lapu City, Mactan.
Direct Line: [+63 32] 340 0721
Cell Phone: 0916 650 9783 / 0922 858 7027
Cell Phone: International [+63] 916 650 9783 / 922 858 7027
Web: http://www.lancastersuites.com [Lancaster Condotel Investments]