Total Area: 300,000 km²
GDP (in million USD): 189,061
An improving economy, rapid growth in foreign investment, and a reform-minded government are boosting confidence among house buyers in the Philippines. In the first quarter of 2012, the average price of a luxury 3-bedroom condominium in Makati CBD rose 4.8% to PHP 114,000 (USD 2,727.53) per sq. m. (q-o-q), according to Colliers International, or by 10.68% during the year to Q1 2012 (7.34% when adjusted for inflation).
High-end residential real estate prices are likely to rise by another 9.9% during the next twelve months, according to Colliers. The highest rents are still in Rockwell Center, with condominium average rentals of PHP 780 (USD 18.66) per sq. m. per month in Q1 2012, up 1.3% on the previous quarter. In Makati's CBD, a 290-sq. m. unit rental averages PHP 658 (USD 15.74) per sq. m. per month.
The growth of the housing market is however held back by several obstacles. The mortgage market is relatively underdeveloped, and most houses are sold for cash or pre-sold. Property buyers also face high transaction costs, corruption and red tape, fake land titles and substandard building practices.