5G Investment News
  • Top News
  • Economy
  • Forex
  • Investing
  • Stock
  • Editor’s Pick
No Result
View All Result
5G Investment News
  • Top News
  • Economy
  • Forex
  • Investing
  • Stock
  • Editor’s Pick
No Result
View All Result
5G Investment News
No Result
View All Result
Home Stock

PHL developers to see increased buyer demand as rates go down

by
August 28, 2024
in Stock
0
PHL developers to see increased buyer demand as rates go down
Condominium buildings are seen in Manila amid dark rain clouds, April 14, 2023. — PHILIPPINE STAR/MIGUEL DE GUZMAN

PROPERTY DEVELOPERS in the Philippines are expected to see increased buyer demand and more affordable financing options for projects as borrowing costs decline, according to consulting firms.

“As key policy rates go down, borrowing costs will also go down for both the developers and the buyers,” Sharon R. Saclolo, head of research at Leechiu Property Consultants, Inc., said in an e-mail interview on Aug. 27.

“This should have a positive impact on the real estate market because it will increase liquidity, meaning more money can be spent to invest in real estate,” she added.

The residential property sector saw a slight decline in total residential real estate loans (RRELs) in the first quarter of the year.

The total granted RREL fell 9% to 9,064 for the first quarter of 2024 from 9,975 loans in the fourth quarter of 2023, according to Leechiu, citing Bangko Sentral ng Pilipinas (BSP) data.

This month, the BSP lowered benchmark interest rates for the first time in nearly four years, citing an improving inflation outlook and strengthening economic conditions, with its governor indicating that at least one more rate cut could occur before the end of the year.

The Monetary Board lowered its target reverse repurchase rate by 25 basis points (bps) to 6.25%, a move anticipated by nine out of 16 analysts in a BusinessWorld poll. BSP Governor Eli M. Remolona, Jr. has indicated that another rate cut of 25 bps could be implemented within the year. The remaining policy-setting meetings of the Monetary Board for 2024 are scheduled for Oct. 17 and Dec. 19.

With the BSP signaling the possibility of an additional rate cut before the end of the year, prospective homeowners may be more inclined to enter the market sooner rather than later, anticipating more favorable borrowing conditions, according to analysts.

“That should fuel the take-up for condominium units, especially in Metro Manila for the mid-income segment, P3.6 to 12 million, which is the most sensitive right now to interest rate spikes,” Joey Roi Bondoc, director and head of Research of Colliers Philippines, said in an interview with BusinessWorld.

He noted that while demand remains somewhat stable, it has not yet reached pre-pandemic levels. The interest rate cut is expected to “definitely jump-start” the infusion of “much-needed confidence” in the residential market.

Mr. Bondoc also expressed hope for additional rate cuts toward the end of the year and into 2025.

Similarly, lower credit card interest rates may boost consumer spending, leading mall operators to expand and occupy larger retail spaces, he noted.

He also said that this renewed interest in the retail sector could attract more foreign retailers to the Philippines, leading to an increase in new store openings.

“And while those that are already here, they might even find that as an impetus to expand brick-and-mortar spaces,” he added. — A.R.A. Inosante

Previous Post

Give my regards to Ho-land

Next Post

An Emperor’s Table laden with ingredients from a place of exile

Next Post
An Emperor’s Table laden with ingredients from a place of exile

An Emperor’s Table laden with ingredients from a place of exile

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.







    Fill Out & Get More Relevant News





    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recommended

    Hived raises $42m to roll out electric delivery fleet across southern England

    Hived raises $42m to roll out electric delivery fleet across southern England

    July 5, 2025
    Tesla sees UK sales rebound in June as EV market accelerates

    Tesla sees UK sales rebound in June as EV market accelerates

    July 5, 2025
    ‘Invest in Women’ fund criticised for slow rollout as MPs call for bolder action

    ‘Invest in Women’ fund criticised for slow rollout as MPs call for bolder action

    July 5, 2025
    “A turning point for education”: James Caan launches bold education reform plan in House of Lords

    “A turning point for education”: James Caan launches bold education reform plan in House of Lords

    July 5, 2025

    Disclaimer: 5GInvestmentNews.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2024 5GInvestmentNews. All Rights Reserved.

    No Result
    View All Result
    • Home
    • Privacy Policy
    • suspicious engagement
    • Terms & Conditions
    • Thank you

    © 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.