A gem of an investment in the "Pearl of the Orient Seas" – The Philippines
A gem of an investment in the “Pearl of the Orient Seas” – The Philippines
For those purchasers keen to be ahead of the game, The Philippines is the latest market to burst onto the international property scene. This Southeast Asian island country offers the attractive blend of a tropical climate, low cost of living, thriving economy and good accessibility and is proving to be a destination more popular than ever with a near 4% rise in tourist arrivals reported for Jan – Oct 2008 compared to the previous year (Central Bank of the Philippines).
Named after the 16th century King Philip II of Spain, The Philippines comprises over 7,000 separate islands in the western Pacific Ocean. It has a population of 90 million and although around 180 languages are spoken across the islands, the two official languages are Filipino and English. Philippine culture is a mix of pre-Hispanic Austronesian (Malayo Polynesian) civilisations, Hispanic and American culture, and to a lesser extent Chinese, Arab, and Indian cultures.
Following a period of marshal law from 1972, the People Power Revolution of 1986 led the country back to the thriving democracy it is today. Turbulence in the late 1980´s gave way to stability and economic growth in the 1990´s. The Philippines is regarded as a newly industrialised country and now receives substantial contributions from manufacturing and mining sectors as well as remittances from overseas Filipinos. Tourism is hugely important as is, increasingly, outsourcing from international businesses. The Philippines has the potential to become one of the largest economies of the world in the 21st century according to Goldman Sachs´ ´Next Eleven´ paper.
The Philippines also represents an exciting alternative to traditional property investments in the West, particularly given recent economic developments. According to a recent World Bank report, thanks to various fiscal and other reforms during the last several years The Philippines is in a good position to weather current difficulties. The report cited continued strong performance in private investments and construction, in addition to better than expected crop harvest yields. There was also higher manufacturing output and continued remittance from the 8 million Filipinos who work overseas.
Such economic resilience is likely to lure increasing international investment into the property market. Demand from Europe, the United States and Russia for city centre and resort properties has been brought about thanks to cheaper prices and the requirement from investors to shift their money into strong emerging markets. Savvier investors are looking for investments with the potential for high monthly rental yields and developments such as the Blue Coral Resort and Spa on Mactan Island, which is to be run as a managed resort hotel, increasingly seem a sound investment. Philippine hotel rates are on a par with the US or Europe, whilst entry level purchasing prices for freehold property are much lower. A deposit on a new fully furnished, five star apartment or villa for example can be as low as £2000.
Mactan Island, subject to much developer interest, is located in part of the central Philippine province of Cebu in the Bohol Strait. This beautiful coral island is surrounded by azure water with extensive mangrove forests and offers some of Asia’s best diving facilities and lush golf-courses. There are modern shopping centres, fine-dining restaurants and lively entertainment centres. Thanks to the Mactan-Cebu International Airport and its proximity to Cebu, the area’s tourism industry has boomed significantly with the local economy feeling the positive effects. Recently, a further £4 million of investment in the airport has been announced, together with the planned addition of another terminal due to the increasing volume of passenger traffic.
Steve Worboys, Managing Director of Experience International, comments:
“Our development on Mactan Island is ideal for property purchasers or investors who are disappointed with the returns on traditional investments and who want to look abroad towards exciting emerging markets. Our properties, to be run as part of a fully managed resort, will allow purchasers or renters to experience the best of life in The Philippines, surrounded by a plethora of facilities. These will include 26 spa rooms, a gymnasium, water sports, diving school, wellness spa, health pools and a private beach.
“The ´credit crunch´ has affected The Philippines to a much lesser extent and given the local price of property and the increasing demand for accommodation in the area, we estimate that properties taking part in our rental management scheme will yield 19.5% per year and up to 150% return on investment over 5 years. These numbers, together with all the other benefits, make investing in the resort seem like simple common sense.”
For more information on this exciting opportunity, visit www.experience-international.com or call 020 7321 5858.
On the market:
Blue Coral Resort and Spa, Mactan Island, Philippines
The Philippines are known as the “pearl of the orient seas” which lie 750 miles off the coast of Asia and consist of over 7000 islands. The Blue Coral resort and Spa is situated in part of the province of Cebu in the Bohol Strait and has a successful tourism economy which has grown over the past few years. It is a region that offers modern shopping centres, fine dining, local entertainment and some of the finest white-powder tropical beaches in Asia.
Blue Coral is a 5 star resort offering studio and 2 bedroom apartments and 2 and 3 bedroom villas on the eastern side of the stunning coral island of Mactan. Situated in close proximity to Cebu city and Cebu international airport these properties are easily accessible and overlook the neighbouring island Cordova.
Facilities on site at Blue Coral Resort and Spa include 26 spa rooms, gymnasium, water sports, diving school, wellness spa, children’s pool and play area, infinity pool and private beach. The properties are to run as a managed resort hotel offering investors high rental yields with a guaranteed net income of up to 19.5%. Prices start from £63,450/ €66,704.