Real estate prices rising strongly

thank god, I am not in the real estate business here - I was searching for a beach lot one year and went through all the troubles, I bought my property here now once, I bought it cheap, and that's it, forever

 

Glad you got here when local prices were still available instead of the crazy over inflated prices nowadays.

 

I will agree to a point Steve BUT what in your estimation, is a fair price per sq.mtr in our area
I mean, I bought mine in Junob at 1,000 am I going to sell it for less?

 

Jack,
Assuming you bought a lot with a "clean bill of health", i.e. clean title, direct access to road, etc., then don't worry too much about your investment. I know of a recent sale in Sibulan at 1.5k per sq.m. (less attractive location than yours), and plenty land for sale at 2.5k or more per sq.m in that area.
Of course, if you built a house on that lot that is unattractive for anyone but you, then you may still be in for a nasty surprise when attempting to sell, but definitely not because of the value of the lot.

 

My problem is I am stuck on what prices should be vs what prices are.

1)the most I have ever paid for acreage was $25k/acre (p309/sqm). The land was all road frontage, Storm Sewer, Sanitary Sewer, Electric, Cable all existing. All I had to do was subdivide, clear, and build houses.

2)the most I ever paid for a lot was $45k (p1,120/sqm), minimum house size in the subdivision was 2,500sqft (232sqm)

3)median family income in US $55k/yr (p2,750,000) US Household Income | Department of Numbers , median Philippine income p267,000 Average Family Income in 2015 is Estimated at 22 Thousand Pesos Monthly (Results from the 2015 Family Income and Expenditure Survey) | Philippine Statistics Authority

4)land in the Philippines is not the same as land in the US. Near a similar sized 100,000 population city, the US has better electric, water, sewer, roads, fire, police, schools, restaurants, grocery stores, hardware stores, malls... The Philippines has better Filipinas. US land should cost significantly more than Philippine land.

5)Philippine income is approximately 1/10th the US. Keeping the same ratio of income to property costs, land in the Philippines should be 1/10th the price in the US.

6)land prices should be closer to p30/meter for raw land and p112/meter for developed land. Those prices actually are real prices today in the Philippines, just not here.

The local market is wayyyy overpriced (for me, based on my experience as a developer), not saying there is a bubble fixing to burst as it seems people continue to think they are getting a deal and paying inflated prices, or see the market continuing to rise so buy out of fear before it is even more expensive, keeping the market up - supply and demand.

The risks associated with purchasing in the Philippines, lack of zoning restrictions, difficulty in being a seller, less than stellar utilities, uncertainty if we will go to the US to get my wife citizenship, and the price of real estate here, all combine to keep me out of the market. I am a renter not a buyer. I often reiterate my opinion about prices here and need to remember everyone has their own circumstances and requirements. I am not 'the market', just one pea in the pod.

 

To the Philippines and the wonders therein

 

I am concerned the embassy warnings against traveling to the Philippines will slow down new potential buyers from relocating here. I heard (unverified) that some resorts are having more than usual cancelations.

 

And rental prices still seem to be crazy low.

 

Shush

 

It's not just land prices that are rising, it's the cost of building that's even more of a concern that is rising even faster. Wherever the foreigners are living that's where the prices go up the most.