Where to Invest in Real Estate?

Looking to buy your next property soon? You may want to start the search at these areas with the best rental yields. By Rizza Sta. Ana

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Early this year, industry analysts predicted that the Philippine real estate market would continue to gain positive momentum, thanks to the robust growth shown across the information technology-business process management (IT-BPM), commercial, residential, industrial and retail sectors. It only makes sense that the right time to invest on a piece of property is now.

But where should one look for the right property to invest in? Any good real estate professional will tell you that the best investment is property located in a neighborhood or district that has the best rental yields. Pursuit of Passion lists down eight of these neighborhoods.

1. Vertis North, Quezon City

Rental yield*: 7.25%

*Rental yield is defined as the yearly rent rate derived from your home’s purchase price or current market value. It may not make sense as a standalone figure, but you can compare the rental rates between several properties across Metro Manila and you’ll have an idea which properties generate a higher rental income. Moreover, the higher the rental yield of your property goes up year over year, the higher you can demand a rental income in accordance to the law.

Accessibility: It is near EDSA (and, therefore, MRT-1) and North Avenue, which opens up to the North Luzon Expressway (NLEX) connecting the metro to Central Luzon provinces.

Neighborhood quality: Vertis North is Ayala Land’s up-and-coming mixed-use development that will allow its residents to live in a dynamic and sustainable development. It will feature a 2-hectare park, commercial and lifestyle spaces, as well as residential and business properties.

Economic potential: Vertis North is a potential hotbed of economic activity ranging from startups to blue-chip companies looking to establish presence in North Metro Manila. Moreover, Seda Vertis North, the latest and biggest hotel in QC, is now open to accommodate guests who are accustomed to the comforts of an urban lifestyle hotel.

Shopping malls Trinoma, and the new Ayala Malls Vertis North are just 5 minutes away. It is also near several government agencies and major hospitals.

 

Living in Quezon City? Avida Towers Sola could be the perfect real estate investment you can make. Located in the upcoming vibrant central business district of Vertis North, it would be awesome to live (or invest) in a condo that’s accessible from North Avenue and Quezon Avenue and is near bus and MRT transportation hubs.

2. Fairview, QC

Rental yield: 7.25%

Accessibility: Via R7 or Mindanao Avenue, Barangay Fairview is a haven of residential subdivisions for growing families looking to establish roots in the North. It is accessible via bus, jeepney, and tricycle.

Neighborhood quality: Fairview may be a bit of a drive from the south, but it has not stopped becoming a favorite destination haunt for foodies. Fairview is also near the La Mesa Watershed Reservation and Ecopark, a protected area that is home to the only major watershed in Metro Manila. Residents and visitors can look forward to the area’s better air quality and more relaxed environment away from the congested parts of the city.

Economic potential: Because of the number of subdivisions and residential districts in the area, there are quite a number of schools within close proximity, including top-notch colleges. The growing population in Vertis North will soon call for more retail, and commercial offerings, of which businesses and companies looking to set up a business in Quezon City can take advantage of.

Moreover, the expected increase in household expenses will prompt homeseekers to look at properties in transitioning neighborhoods like Fairview, which offers a much affordable lifestyle as compared to its high-value location counterparts.

Planning to start a family real soon? Avida Towers Astrea is a mid-rise condo development that offers a secure and organized community living in Fairview, which are great requirements for a starter home.

 

3. NUVALI

For-sale property price range: P7.3M – P8.8M

The lack of rental yield percentage and the current purchase prices does not mean NUVALI is not an opportunity worth seizing now. This masterplanned community has already established itself as a real estate gem, especially for Southerners looking to move somewhere progressive.

Accessibility: NUVALI is a sprawling eco-city located just southeast of Metro Manila. The province’s easy connection to Metro Manila is largely thanks to the South Luzon Expressway, which passes through it. The proposed Cavite-Tagaytay-Batangas Expressway (or CALAX) will also make commuting from Santa Rosa to Metro Manila’s points of interest, including the NAIA airports, easier.

Neighborhood quality: The number of attractions in the area include a wakeboarding park, sports fields, open-area retail hub, and the water taxi has attracted families and friends who are fond of outdoor activities. There are several family-friendly restaurants in Ayala Land Malls Solenad for anyone who wishes to unwind for the weekend.

Economic potential: The development of the 2,290-hectare commercial district in Santa Rosa helped attract more modern, urban conveniences offered in the city. Shopping complexes, malls, and huge supermarkets cater to the number of residential subdivisions and gated communities in the area. Moreover, NUVALI’s vast commercial spaces available for lease or sale has attracted several BPO companies to open office, paving the way to the upcoming development of the Future Central Business District.

On the hunt for a home in the South? HIllcrest Estates in NUVALI offers an idyllic home with exclusive amenities you and your growing family will enjoy. Bonus? Take in the breathtaking views of Mount Makiling and Tagaytay Ridge from your future home.

 

4. Cavite

For-sale property price range: P2.4M – P10.8M

Cavite’s proximity to Metro Manila has a lot of people from the megacity to migrate to this growing province. Moreover, real estate and infrastructure are moving at the same rate to accommodate the rising population and daily commute traffic.

Accessibility: Cavite is one of the nearby provinces of Metro Manila, and is accessible via the Aguinaldo Highway and Cavite Expressway (CAVITEX). The Kaybiang Tunnel and the Muntinlupa-Cavite Expressway are also major thoroughfares that connect Cavite to Batangas and Muntinlupa. Also, CALAX, the Cavite-Laguna Expressway, and the upcoming LRT 6 will allow people to easily commute or drive from Batangas to NAIA airports. A network of secondary and tertiary national roads links most of the municipalities, where you can commute via jeepney or tricycle.

Neighborhood quality: Majority of Cavite are residential areas, with city centers as its primary economic districts. Residential subdivisions are located in suburban areas, which are 15-20 minutes away from the city centers. The De La Salle Schools has a new senior high school extension called the De La Salle Santiago Zobel Vermosa Campus, which is now open.

Economic potential: Although a predominantly agricultural province, Cavite’s major cities are close to 12 economic zones/industrial parks and several estates, each functioning like a micro-city. Food parks near the area, particularly Fun Factory Food ParkGround Zero Food Hub, and Backyard Food Park, have drawn real estate interest in Cavite.

Investing in a summer home or a permanent home to retire in Cavite is a sensible decision if you still need to be where the urban action is. Southgrove Estates by Avida, which will be turned over by the end of 2017, can be your exclusive respite with lots of open spaces and country-club amenities for home seekers.

5. Makati

Rental yield: 6.94%

Accessibility: Bound by EDSA, Gil Puyat Avenue, Arnaiz Avenue and Chino Roces Avenue, Makati City can be accessed by the MRT-3 line and major thoroughfares via public or private transportation from north or south Manila.

Neighborhood quality: The central business district of Makati accommodates hundreds of mixed-use developments that offer exclusive living within an urban landscape. Residents live in functional apartments to five-star condos within walking distance of their places of work, malls, parks, entertainment hubs, and even weekend markets.

Economic potential: Makati is one of the richest cities in the Philippines, given the fact that it is the country’s financial capital. Not only is it home to big-chip and business process outsourcing (BPO) companies, it is also one of the favorite locations for international companies to set up headquarters in. Moreover, Ayala Land is set to invest P125 billion in the city, and redevelopment is underway through real estate projects in its six nodes (McKinley Exchange, Circuit, Ayala Triangle, City Gate, Ayala Center, and the CBD area).

If you’re looking to invest in a Makati condo, consider a property at one of the city’s up-and-coming districts that’s still close to where the action is. Avida Towers Asten in West Makati is a high-rise residential condominium that’s just walking distance to the Makati Central Business District.

6. Bonifacio Global City

Rental yield: 7.07%

Accessibility: BGC is a financial district in Taguig City sandwiched between EDSA and C-5 Road. The district has a special bus system that offers routes from Makati C-5, and even Laguna to different areas in BGC.

Neighborhood quality: As a private property, BGC is equipped with a CCTV system and roving guards who implement traffic rules, and peace and order. It has several mixed-use developments that function like micro-cities on their own, complete with high-tech offices and residential buildings, retail outlets and pedestrian-friendly roads and walkways.

Economic potential: Big companies like HSBC, JP Morgan Chase, Chinatrust, Deutsche Bank, Oracle, Thomson Reuters, and Sun Life have made BGC its base of operations. It is also the home of various embassies, including Singapore, Great Britain, Korea, and Qatar. The Philippine Stock Exchange will soon relocate here as well, making it a formidable financial capital in the country. Moreover, there is a number of BPO firms in BGC, making it an important hub for the call center industry. The national government also announced the development of an ambitious Mega Manila subway that would connect BGC to NAIA in the south, and Quezon City in the north.

Turf
Love the urban conveniences but can’t leave the South behind? Avida Towers Altura is a perfect alternative for people working or who are doing business in or nearby South Park District, a 6-hectare mixed-use development in Alabang, Muntinlupa.

7. Alabang

Rental yield: 6.64%

Accessibility: Located in the city of Muntinlupa, Alabang is accessible via the Metro Manila Skyway and South Luzon Expressway (SLEX) via bus or private car.

Neighborhood quality: A large portion of the exclusive Ayala-Alabang Village is located in Barangay Alabang. The rest of Barangay Alabang is home to residential and commercial real estate projects, the Asian Hospital and Medical Center, shopping centers, and top hotels.

Economic potential: The development of high-end, large scale commercial real estate projects has accelerated growth not just in Alabang, but in Muntinlupa as well. Alabang is home to several information and technology companies, and a string of hotel properties that house business travelers to locals. Alabang also has at least five major shopping malls, and multiple car dealerships, with most of them along the Alabang-Zapote Road.

Love the urban conveniences but can’t leave the South behind? Avida Towers Altura is a perfect alternative for people working or who are doing business in or nearby South Park District, a 6-hectare mixed-use development in Alabang, Muntinlupa.

 The truth about rental yields

There are several real estate experts who advertise rental yields per location, and you can use these numbers as an indication of where to start your search. However, it is also equally important to know that these reports are based on historical data, and the figures are at least 6 to 12 months old.

Moreover, the rental yields in reports are typically average figures, and might not reflect the current market value of the properties chosen in a particular location. As such, it is still advisable for property buyers to practice due diligence by learning some simple rental yield calculations. If you’re into buying for the sole purpose of earning rental income or earning capital from flipping or reselling, it also pays well to know how high the rent in the neighborhood has gone up in the last few years. You should also have an emergency fund to cover the costs of maintaining the property, especially if it remains idle or doesn’t get rented out for a long time.

 

So where do you buy your property? Check these Avida developments in the different Metro Manila and GMA locations: Avida Towers Sola in Vertis North, Avida Towers Astrea in Fairview, Southgrove Estates by Avida in Cavite, Hillcrest Estates in NUVALI, Avida Towers Asten in West Makati, Avida Towers Turf in BGC, and Avida Towers Altura in Alabang