Will the Philippine real estate market ever recover?

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RBM
Posted
Posted
13 hours ago, Snowy79 said:

I think I had a lucky escape with Regatta Bay in Puerto Princesa, Palawan.  A good 5 yrs ago maybe 6 I looked into buying what looked like a beautiful apartment off plans.  I visited the site before deciding and was shown around what was basically a cleared jungle then taken into the city to look at some mock scale models of what the apartments would look like.  Everything seamed professional and the company although not large had a few finished developments.

I signed the initial paperwork stating I will buy and pay the full amount within 6 months to avail a large discount.  I was given an 18 month completion time. I kept up on the development watching the company sales videos etc on the web and visited again after about 4 months.  If I remember correctly a shovel had been moved in the 4 months but nothing else.  They explained that they were shipping everything from Manila and lining up all the trades to crack on within the next couple of months.

At the six month time they were on my case for the money but I told them I need to see some movement as I had a bad feeling.  They offered me the same deal but in 3 payments spread over 6 months.  I stalled them and said I'll visit once more in a few months but I returned unannounced and sure enough nothing had been done. They never knew I visited and were chassing the first payment, they sent photos of a ground breaking ceremony showing then starting on my condo so I told them I'll be back in the Philippines in 3 months and just pay cash.

Again I returned unannounced and the ground breaking hole was overgrown so I just emailed them and told them they could shove their condo.  I kept an eye on the build via the web for a couple of years and couldn't see any real movement.  Even friends in Puerto Princesa were saying they never even heard of the development.  I've just looked online and there are some sad reviews.  A lot of photos some only from a few weeks ago showing part built structures that are already in decay and building materials almost completely covered by the jungle again.  Some poor OFW was commenting that she hopes it turns out to be a good investment followed by another review saying the company has closed down and can't be contacted. 

Just done some more research.  They are back and calling themselves " The New Regatta Bay."  Same artists drawings of the original buildings but a whole new sales video that looks very professional. I don't know how they get away with it as it's the same construction company.  

After reading this it confirms my long held view that dealing with Ayala or Mega World, one or two others, is the only safe option. Interesting comment from Snowy is his due diligence showed they had successfully completed a few developments.......Just shows the risks involved.

Even if one can save from buying off the plan is it worth the risk?

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Snowy79
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Posted
7 hours ago, Jollygoodfellow said:

So in reality if most other purchasers also never paid on time then how could anything go forward which is probably what happens? No money comming in; the end of great idea of a huge condo complex. Boils down to projections of developers, then financial climate which can go up and down as well as sales team and or management.  To me it's like this, If I come up with a good idea which I believe in and need financial backing and the financial side slips the rest is history as well. 

In the sales office the plans showed over 60% sold and choices of apartments were limited. I'd like to think any development worth it's salt has the financial backing for at least a 50% build. I'd see photos of the sales team and directors travelling to America and Europe trying to sell and figured they were using peoples deposits for free holidays. If they had spent some of the money getting work underway I'm sure they could have encouraged more buyers. Chances are others sussed what was going on and pulled out leaving those that paid upfront taking the hit.

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Shady
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On 11/5/2020 at 6:19 PM, hk blues said:

Yes, but if you buy a house from one of the major developers the issues you mention don't exist.  

:hystery:

 

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Gandang Smile
Posted
Posted
17 hours ago, Snowy79 said:

I think I had a lucky escape with Regatta Bay in Puerto Princesa, Palawan.  A good 5 yrs ago maybe 6 I looked into buying what looked like a beautiful apartment off plans.  I visited the site before deciding and was shown around what was basically a cleared jungle then taken into the city to look at some mock scale models of what the apartments would look like.  Everything seamed professional and the company although not large had a few finished developments.

I signed the initial paperwork stating I will buy and pay the full amount within 6 months to avail a large discount.  I was given an 18 month completion time. I kept up on the development watching the company sales videos etc on the web and visited again after about 4 months.  If I remember correctly a shovel had been moved in the 4 months but nothing else.  They explained that they were shipping everything from Manila and lining up all the trades to crack on within the next couple of months.

At the six month time they were on my case for the money but I told them I need to see some movement as I had a bad feeling.  They offered me the same deal but in 3 payments spread over 6 months.  I stalled them and said I'll visit once more in a few months but I returned unannounced and sure enough nothing had been done. They never knew I visited and were chassing the first payment, they sent photos of a ground breaking ceremony showing then starting on my condo so I told them I'll be back in the Philippines in 3 months and just pay cash.

Again I returned unannounced and the ground breaking hole was overgrown so I just emailed them and told them they could shove their condo.  I kept an eye on the build via the web for a couple of years and couldn't see any real movement.  Even friends in Puerto Princesa were saying they never even heard of the development.  I've just looked online and there are some sad reviews.  A lot of photos some only from a few weeks ago showing part built structures that are already in decay and building materials almost completely covered by the jungle again.  Some poor OFW was commenting that she hopes it turns out to be a good investment followed by another review saying the company has closed down and can't be contacted. 

Looks like you were about to fall prey to the usual medium-sized local developer with grandiose ideas but little cash to show for it. They probably weren't able to rake in enough advance payments from buyers and credit from banks and that stalled the project, which dropped the buyers' and investors' confidence even more. I have heard this death spyral countless times, and not just in the Philippines.

17 hours ago, Snowy79 said:

Just done some more research.  They are back and calling themselves " The New Regatta Bay."  Same artists drawings of the original buildings but a whole new sales video that looks very professional. I don't know how they get away with it as it's the same construction company.  

So now they're rebooting but i checked the company and development online, they have abysmal reviews and huge warning flags. They won'ty fleece the next batch as easily...

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Gandang Smile
Posted
Posted
3 hours ago, RBM said:

After reading this it confirms my long held view that dealing with Ayala or Mega World, one or two others, is the only safe option. Interesting comment from Snowy is his due diligence showed they had successfully completed a few developments.......Just shows the risks involved.

Even if one can save from buying off the plan is it worth the risk?

Actually, every large developer in the Philippines is a safe bet in terms of guarantee of completion. It's more to do with the quality of the condo. SMDC and Megaworld will definitely turn over your unit on time or on a modest delay but, until recently, they specialised in low-quality housing that shows signs of decay months after completion.

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Snowy79
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2 minutes ago, Gandang Smile said:

 

So now they're rebooting but i checked the company and development online, they have abysmal reviews and huge warning flags. They won'ty fleece the next batch as easily...

It looks like they are targetting OFW now. I've researched more and it turns out to go as far back as 2012.  The owners are residing in Las Vegas and use a team of con artists in the Philippines.  Basically funelling all the money offshore. 

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Gandang Smile
Posted
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4 minutes ago, Snowy79 said:

It looks like they are targetting OFW now. I've researched more and it turns out to go as far back as 2012.  The owners are residing in Las Vegas and use a team of con artists in the Philippines.  Basically funelling all the money offshore. 

Oh shoot. So it's a con job proper! Filipinos are indeed their worst enemies... :shock_40_anim_gif:

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