Property has been enjoying a boom like no other in the past few years in Philippine the good times are coming to an end.
The bank's analysts have turned markedly bearish, with a report predicting residential rents and prices plunging 30 per cent over the next three years.
This will be a painful reversal given that prices surged 12 per cent last year - as Philippine bounced back from the global financial crisis - and a further 3 per cent in the first nine months of this year.
Like they say the Boom and bust cycles
'Property markets go through cycles, just like economies. Only if you are in an emerging market where there is a long period of strong economic growth, might you have a long property market upcycle.' Buying sentiment may be affected
'The moment when potential buyers feel insecure about their future source of income is when they pull back from buying or begin to divest.' Population growth could boost demand
'If the economic crisis is not too severe, this will help to mitigate the sharpness of any price correction.'
The problems ahead, including slower foreigner population growth due to stricter immigration policies and the unprecedented supply of completed homes coming onstream.
food for thought
