There are several reasons this is happening. Firstly there is somewhat of a boom going on, maybe a mix of investments in areas by companies such as Gaisano, Ayala or SM which are currently extending stores outwards and each one being as big as they are create many jobs. The other things that are developing are call centres and related services. Both of these factors bring people from the provinces to the City and if there are more people here then more rentals are needed, more houses need to be built and all in all the city is having a major influx of population growth from the provinces. Add to that markets opening up such as retirees moving here from all over the world. OFWs building homes back home in preparing to retire and if not just buying up lots of land while they can afford it you can see why things are going up. Material costs are increasing, land prices are hiking all in all its looking a busy 5 – 10 years unless a world recession kicks in which currently i dont see happening maybe a slow down but not a depression. Which i think is down to Filipino mentality most of the filipinos i met in the UK have some pretty crap jobs even though they are well educated and very smart, But what they lack in salary they have the common sense to invest and buy only what they need. Dropping out of the consumerism that places such as the U.S. and the UK live on placing the live for today above save for tomorrow. But the average filipino has already seen what its like to have nothing so are smart with the money they earn and save, invest and educate working towards a better life at each turn. So a recession may slow things but it wont drive to a collapse which some economic professionals currently predict.
So if its so expensive how do i find cheap property?
- Only use a realtor as a last resort they are on commission generally 5% so whos interest they got at heart??
- Realtors value land at P2,500+ sqm where infact the same land can be direct bought at P800sqm.
- Try and agree a finders fee for someone getting you land/property at the right price this way they are less likely to overcharge for the land (but doesnt work in all cases).
- Do your homework find out the current values of land if possible from sales maybe recent family members have purchased.
- Find a good lawyer, maybe find referalls from other OFWs/Retirees so you dont get swindled especially on background checks of the land. Because the land/house may have been part of a pawned debt and the purchase may bring unwanted hassles or contentions for ownership.
- Check all the paperwork yourself, make sure everything is order and taxes are upto date
- Make sure the Seller is paying the Capital gains tax or if not find out how much its going to cost.
- Check if electric/water/sewers are connected or when you can get them connected.
- Check ownership of right of way.
*Very important a FOREIGNER cannot own land in the Philippines, if you are a foreigner look for a condo*