Keep or Sell Property? Yes or No?

The Philippine property market is showing signs of a robust recovery and positive growth trends as we head into 2024. This growth is driven by various factors including macroeconomic stability, increased foreign investment, and a resurgence in demand across different sectors of the real estate market. Here's a breakdown of key insights and trends that might help you decide whether to sell your property quickly or hold onto it:

1. **Overall Market Recovery**: The market is recovering from the impacts of COVID-19 with an optimistic outlook. Colliers predicts a faster pace of recovery beyond 2024, supported by macroeconomic growth and sound economic policies. This suggests that keeping your property could be beneficial as the market value may continue to rise【20†source】.

2. **Residential Property Trends**: There has been a significant increase in residential unit completions, particularly in Metro Manila’s Bay Area. This could imply a potentially higher demand and value for properties in these areas. Additionally, the trend of people moving from cities to suburbs, accelerated by the pandemic, might influence property values in different locations [[❞]](https://www.crownasia.com.ph/lifestyle-blog/the-philippine-real-estate-property-market-this-2024/) [[❞]](https://www.vistaresidences.com.ph/blog/housing-market-trends-and-forecast-for-2024).

3. **Price Trends**: Residential real estate prices have shown an upward trend, with the Bangko Sentral ng Pilipinas Residential Real Estate Price Index indicating a 7.7% increase in the fourth quarter of 2022 compared to the same quarter in 2021. This upward trend in housing prices suggests that holding onto your property could lead to capital appreciation over time [[❞]](https://www.bria.com.ph/articles/market-trends-and-the-future-of-real-estate-in-the-philippines/).

4. **Investment Climate**: The Philippine real estate market is attracting significant foreign investment, with companies like Megaworld Corporation investing heavily in the sector. This influx of investment is a positive sign for the market’s future growth [[❞]](https://www.asiapropertyawards.com/en/bricks-and-bountiful-returns-philippine-real-estate-gears-up-for-a-landmark-year-in-2024/).

5. **Rental Property Market**: The rental market has seen declines, particularly in major cities, partly due to the population shift to the suburbs. This might affect the potential rental income from your property if it's located in one of these major cities [[❞]](https://www.vistaresidences.com.ph/blog/housing-market-trends-and-forecast-for-2024).

6. **Interest Rates and Loan Considerations**: The Monetary Board of the Bangko Sentral ng Pilipinas has raised key policy interest rates, which could affect mortgage costs. Higher loan rates might decrease demand slightly but won't significantly impact the viability of real estate investment in major business districts in the long run [[❞]](https://www.bria.com.ph/articles/market-trends-and-the-future-of-real-estate-in-the-philippines/).

In conclusion, if you're considering the long-term growth and potential capital appreciation, holding onto your property in the Philippines seems promising given the positive market trends and economic outlook. However, if your decision hinges on short-term gains or avoiding potential risks from fluctuating interest rates and market conditions, selling the property within a year might be more suitable. Ultimately, your decision should align with your financial goals, risk tolerance, and market conditions specific to the location of your property.

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From the desk of Jez., a Haybolbay correspondent