Rental Income in Philippines - looks attractive

Philippines: yields on large condominiums look attractive

Oct.03, 2013

Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Yields in Manila remain good, but somewhat lower than during the past few years (when they were excellent). This does not mean that foreign investors should necessarily rush to invest in Manila, because transaction taxes (known as ‘capital gains taxes, but not actually such), and (if observed) official income tax rates applicable to non-resident investors, are high.

Buying prices for condominiums are at around US$2,000 to US$2,500, though of course it is easily possible to pay more. Unusually, yields are not highest on the very smallest units, which suggests that smaller condominiums are oversupplied. The highest-yielding units are 70 square metre units (which have gross rental yields of nearly 10%). Yields are surprisingly good on very large condominiums (250 square metres), at around 9%, and this may be an optimal size for investment.

Source: GLOBAL PROPERTY GUIDE

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