The Philippine Stock Exchange Index (PSEI) hits all-time highs in October, even breaking the 8,500 mark in intraday trading by mid-October. Matching a similar trend among several US and major Asian indices, this was buoyed by the government’s announcement of the liberation of besieged Marawi City, as well as some active foreign investments. The market is also up by 9% compared to the same period last year; and around 20% since the start of the year. Some market observers expect that this trend will continue, and even breach 8,600 before 2017 ends.
But while the general uptrend is a good sign of investor confidence, it has been a volatile past 12 months for the Philippine Stock Market. In fact, the PSEi bottomed out at 6,499 sometime in December 2016 to a 52-week low. It also dropped by roughly 1,000 points in just a 60-day span almost a year ago (between October and December 2016).
This is the scenario today: inflation is at a steady 3%, GDP is forecast near 7%, the peso is weaker at PHP51=USD1, and there is a lot of political noise inside and outside the country. Because of these factors, there is little consensus whether the PSEI will breach 8,600, or fall steadily and settle somewhere at the 8,300-level. As in the world of stock investing, no one knows when and where the market will go.
Investing with Stability
While investing in stocks is, and should be, part of a balanced portfolio, investing in more stable, less-volatile assets should also be part of your investment mix. Hence, investing in real estate always makes good sense.
The value of real estate investments gradually but steadily appreciates over time. This means that it does not have the volatility associated with the day-by-day or hour-by-hour fluctuations of the stock market. In fact, a recent report shows that residential property value in Metro Manila has grown by around 3% on a quarter-to-quarter basis, and is projected to increase by 6% to 9% in 2018 on a year-on-year forecast. It is not as dramatic as the 20% YTD increase of the stock market, but not too bad, either.
Real estate investments can also be both self-liquidating assets and sources of passive income at the same time. You can lease your property to interested parties, and the rent can be used to pay for the mortgage you may have taken out. The same report shows that residential rental yields in the Philippines are at 5.5%; the second highest rate in Asia.
So make sure to put your money in an investment with a trusted property developer that has a track record of high-quality developments. If you’re looking for ideal condominiums for sale in the Philippines, both Callisto in Circuit Makati or Park Cascades in Arca South, Taguig are great choices. If you want to be in the middle of everything, Orean Place at Vertis North, Quezon City or Portico in Pasig are your best bets. And if you’re looking to invest outside of Metro Manila, there are property options such as Aveia in Laguna or Patio Suites in Davao to choose from.
Regardless of what you’re looking for, Alveo Land can offer the right real estate investment for you. To know more, click here.