The Rise Makati – Property Investments in the Philippines

Last month, together with a group of property investors, I attended a seminar about property investment in the Philippines, with the focus on the development called ‘The Rise Makati’ situated in the heart of NOMA (North Makati).

The Rise Makati

With a population of over 96 million people spread across 7107 islands, the Philippines clearly offers many investment opportunities.

However, because there is so much land, investors have to be careful when selecting properties to invest in in the Philippines.

Why the Philippines though, some of you may ask? MegaMax Global chose the Philippines because the country’s real estate industry is “on a growth trajectory.”

On top of that, according to one speaker, Mr Spencer Ngui, Executive Director of MegaMax Global, there is a “rental culture” in the Philippines. So property investors can expect attractive rental yields on top of capital gain.

One of the reasons MegaMax Global chose to introduce ‘The Rise Makati’ to their clients is because the property is developed by Shangri-La / Shang Properties, a brand name that inspires confidence. Also, the development is on prime land located within 8 minutes’ walking distance to the Makati CBD area.

If you would like to do the math yourself, rental prices around the area range from 646 to 1300 pesos psm. And NOMA was described as Spencer to be the “Tanjong Pagar of Shenton Way”. If you haven’t visited Makati yet, you should. I went there last year, and it was totally not backward like I had expected. It was a bustling, modern city with cafes, malls and shops that I truly enjoyed visiting.

With over 82,000 square feet of world-class resort-like facilities, ‘The Rise Makati’ is not only freehold property, but also priced within the reach of most Singaporean property investors. Units are priced from S$68,000 onwards. At less than 100,000 pesos per sq metre, it is below the market value price of around 130,000 pesos, so investors can likely “profit upon purchase”. The downpayment is at 10% and monthly installments are around S$700. Rental yield at this stage has been projected to be 12-13%.

What buyers should note:

1) Studio units are currently “sold out unless you are buying in bulk” then MegaMax Global can speak to the developer and try to get you units on “the whole floor”.

2) If you pay up in full (cash), you get 12% discount. If you decide to pay 20% every year, you get 4% discount.

3) If you don’t want to pay the VAT, buy two 1-bedder units instead.

And Singaporean investors’ favorite question: Will there be a parking lot for each unit?

Singaporean investors may not be comfortable with the fact that each unit does not automatically come with a parking lot. Though there are 2822 units, there are only 744 resident parking lots. And if I’d heard correctly, one has to buy the 2-bedders before being eligible to buy a carpark lot at 1 million pesos, or about S$29,000.

So you decide for yourself whether you need that carpark lot together with your unit when making your investment decision. 🙂

*Update* One investor was so happy with his property purchase that he sent this email to Spencer:

MegaMax Global

The text reads:

“Dear Mandy & Spencer

I was very glad that you brought me this good value property – The RISE, Makati. It cost only Peso100,000 psm; where the surrounding psm is much higher. And yet with Shang properties’ developer. I am confident that this property will be completed in high quality finishing and appreciate in value.

On top of this, I learnt so much about Philippines’ properties during the 3-day tour in Manila. You showed & highlighted me various types of properties from medium-low end, high end to premium units. This expanded my view and perceptions of city of Manila.

Thank you very much.”

Have a question about The Rise Makati or property investment in the Philippines? Contact SPENCER at 96848998.