While more pressing matters influence consumers’ buying behavior, investing in real estate is still on their list, according to BSP.
When is the right time to buy a home? The question continues to plague the minds of Filipinos, many of whom choose to rent a home at least for the time being due mainly to budget constraints. But a recent study conducted by Bangko Sentral ng Pilipinas (BSP) reveals that while the saving and spending behavior of consumers are propelled by other more urgent needs, they remain open to the idea of investing in real estate.
BSP reported that the number of households with savings increased to 33.9% in Q2 2015 from 31.6% in the previous quarter. The top three forces behind their saving behavior are emergencies, education, and health and hospitalization. The study also showed consumers’ spending outlook indicating that they expect to spend more on goods and services, with big increases observed in fuel, transportation, education, and restaurants and cafes.
Still, while Filipinos are prioritizing their spending according to immediate needs, there was a definite increase in the number of people who continue to view real estate investments in a positive light. The study revealed that the number of Filipinos who believe that the first quarter of 2015 was a good time to buy properties like real estate and vehicles increased to an all-time high of 28%. This number went up further in Q2 2015, reaching 30.3%. Respondents were encouraged by an optimistic view of the real estate sector, as well as belief in the lucrative nature of property investments. On top of this, several real estate experts continue to predict that the Philippines will remain as a leading real estate investment destination, which could prompt the entry of foreign investors and lead to the development of more properties.
Taken together, these opportunistic views should offer aspiring homeowners a great deal of comfort as far as making the move from home renting to home ownership is concerned. In addition, smarter budgeting, the availability of housing loans from the public and private sectors, and proper research should fast-track their home purchase even more.
Real estate developers and investors should be able to take comfort in these insights as well. Knowing that property ownership is merely at the back burner and not completely out of the picture for many buyers, they can rest assured that there will always be a market to serve as they continuously build houses and condos all over the country.
Photo from Hans Olav Lien/Creative Commons