A Commentary on Land Prices in High-End Villages

Land-Values

Just my two cents: General increase in land prices in prestigious villages mainly due to:

  • Prices shown in the graph are “highs”, average prices should be 10% to 15% lower.
  • Lots in these Makati villages are very rare. The low supply allows sellers demand exorbitant prices for their properties in these villages.
  • In the past 6/7 years, more people are entering the “ultra high net worth individual” space which in turn is attributed to bustling businesses/booming Philippine economy (it’s more common to see Ferraris and Lambos in recent years).
  • These are the people buying at those prices.
  • Optimism on Philippine economy have influenced the current ultra high net worth individuals to land bank.
  • What would be interesting to see is data prior to 2010. My guess is, the uptrend shown in the graph is also a recovery of prices from the dip in prices from the Global Financial Crisis back in 2006/2007.
  • Dip in prices in Green Meadows is due to the earthquake scare. Green Meadows is found near the fault line.
  • Increase in prices in Ayala Alabang due to the completion of Stage 2 (exit to Alabang’s South Station) back in April 2011.

Here’s the original article from Entrepreneur: http://www.entrepreneur.com.ph/news-and-events/which-high-end-villages-tripled-average-land-prices-in-the-last-6-years-a00200-20170925

Disclaimer: This material, which is strictly for information purposes only. The views and opinions expressed in this article are those of Juan Patag’s and do not necessarily reflect the position of RE/MAX Capital, or any other RE/MAX franchise. Any information is subject to change without prior notice. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein. Information Each RE/MAX franchise is independently owned and operated.

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