What Are the Highest Yielding Buy To Let Apartments in Manila?
The redevelopment of Manila’s waterfront has increased the demand for residential apartments in the area. The area is increasingly popular with investors and there are a range of buy-to-let condos available for most budgets but what are the highest yielding apartments currently on the market?
Standing on opposite sides of the Pasig River two luxury buy to let investments, Edades and Acqua, offer strong rental yields for investors. Despite their close proximity, the developments could not be more different in terms of size, design and price. We’ve highlighted some of the key differences between the developments for potential investors to demonstrate the key fundamentals of these buy-to-let investments.
Acqua Private Residence
A popular choice with investors is Acqua Private Residence – 6 luxury towers being constructed by Century Properties, the largest private developer in the Philippines. Surrounded by lush greenery and enchanting water features its amenities include a modern-day Country Club, The Pebble and retail and dining haven, The Riverwalk Promenade.
Investors can purchase a one bedroom apartment for £37,772.55 and luxurious 2 bedroom apartments from only £80,508.44. Based on the developer’s previously completed projects, investors are anticipated to benefit from 100% capital growth over the construction time, a figure expected to be exceeded as it is a Riverfront Development. Along with strong projected rental yields of 14% NET and strong expected capital growth moving forward.
Due to the development’s size, Acqua has a range of different size buy-to-let apartments including smaller units that cater for a larger range of the rental market. These smaller size units are easier to rent as they are easier affordable for more people.
This is quite unique with a luxury development as typically they’re targeted at the top end of the rental market. Acqua’s ability of offer such a selection is appealing for investors as it almost guarantees high-occupancy rates and, as demand for residential condominiums in Manila is very strong, the resale options to the domestic market or other investors are very good.
Edades Tower and Garden Villas
Directly across the river in Manila’s business district, Edades Tower and Garden Villas are another example of residential buy-to-let apartments. The 4 luxury blocks and garden villas have onsite facilities including shopping, business centre, function rooms,, pool and lush green gardens.
This development also offers investors strong rental yields, however the entry level cost for investors is relatively higher. The starting pre-selling rate was 120,000 – 125,000 Philippine Pesos however apartment prices have appreciated – this happens twice a year at 3%-5% increments each time. Unlike Acqua, this development does not appeal to the mass market as it has been aimed towards the top end of the spectrum.
At the moment the average price per square meter for Edades Tower and Garden Villas is now at 155,000 – 160,000 Philippine Pesos. This is at lot higher than the average price per sqm for Acqua which is just 95,000 Philippine Pesos.
Despite Edades’ high entry level pricing, the buy-to-let units are delivered bare as standard. This means that investors need to arrange furnishes and fittings for the apartments. Optional fully-fitted and fully-furnished units are available for Acqua units, removing the requirement for an investor to arrange details for a truly hands-off investment.
Both Acqua Private Residence and Edades Tower and Garden Villas are positioned in perfect locations for buy-to-let investment apartments in Manila and provide their investors significant rental yields.
Acqua private Residences is almost half the price of the closest competition despite the fact that both developments are situated right next to each other but on opposite sides of the river. Acqua’s lower entry level price and outstanding location makes the new buy-to-let apartments a popular choice for investors looking to make money from a hassle-free investment.