Philippines named top hotspot

The Philippines tops a new poll of property investment destinations, especially for buyers seeking a short term investment.

The research from international property specialists David Stanley Redfern suggests it is a safe bet that real estate will grow in value by 20 to 25 % per year based on what is happening in other countries in the region.

Philippines real estate growth is, like Phnom Penh, fuelled by massive growth in its business and industry sectors, primarily in Manila as major companies flock in to build cheap office towers, inhabited by a cheap work-force, working with manufacturing goods bought just as cheaply.

This then brings in retail chains and financial outlets in preparation for the increasing affluence of the population. The big corporations tend to relocate the top-level management, and the incoming executives are looking for quality rented accommodation. The same is true as the affluence of local people increases in their new jobs, says the company's head of international research Liam Bailey.

Second is Koh Samui Island, Thailand. The research shows that people who bought a resort property in Koh Samui in late 2005 as a short-term investment, sold last year for twice what they paid. This showed that capital appreciation had been solid at an incredible 50% per year for the two previous years.

Thailand's growth is fuelled primarily by incredible tourism figures. As the number of people flocking in for the white sandy beaches, tropical climate and tropical atmosphere increases by 20% per year, resort properties on the island of Koh Samui will continue to attract a great proportion of the visitors, and property prices continue to grow strongly, the company claims.

Koh Samui now has more 5 and 6 star resort developments that any other island, and the competition in the market is good for buyers because it is forcing developers to find ways to make their developments stand-out, it adds.

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