Ayala Land Reports Shift in Foreign Buyer Profile as Americans Surpass Chinese

Ayala Land sees shift in foreign buyers, with Americans overtaking Chinese as top buyers, reflecting Marcos admin's pivot from China to US. This highlights the impact of geopolitics on the Philippine real estate market.

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Ayala Land Reports Shift in Foreign Buyer Profile as Americans Surpass Chinese

Ayala Land Reports Shift in Foreign Buyer Profile as Americans Surpass Chinese

Ayala Land Inc. (ALI), the Philippines' largest property developer, has witnessed a significant change in its foreign buyer demographics, reflecting the Marcos administration's policy pivot from China to the United States.

In 2023, American buyers accounted for 57% or P8.03 billion of ALI's reservation sales to foreign nationals, a notable increase from 66% or P7.95 billion in 2022. Conversely, Chinese buyers, who were previously ALI's main foreign buyers during the Duterte administration, saw a sharp decline, accounting for only 8% or P1.13 billion in 2023 and 1% or P730 million in 2022.

The shift in foreign buyer profile coincides with the Marcos administration's move towards strengthening ties with Washington, marking a departure from the previous administration's focus on Beijing.

The decline in Chinese demand for ALI properties can be attributed to the crackdown on Philippine Offshore Gaming Operators (POGOs), which had previously driven a surge in Chinese nationals purchasing real estate in the country. Chinese demand for ALI properties peaked at P10.7 billion in 2018, largely driven by the POGO industry.

Why this matters: The changing foreign buyer landscape in the Philippine real estate market reflects the broader geopolitical shifts and economic policies of the current administration. As the country navigates its relationships with global powers, the impact on various sectors, such as real estate, becomes evident, highlighting the interconnectedness of politics and the economy.

The rise in American buyers and the decline in Chinese buyers for ALI properties underscore the significant influence of government policies and international relations on the real estate market. As the Marcos administration continues to foster closer ties with the United States, it remains to be seen how this will further shape the foreign buyer profile in the coming years and its potential impact on the Philippine economy as a whole.

Key Takeaways

  • Ayala Land's foreign buyer demographics shifted from China to the US under Marcos.
  • American buyers accounted for 57% of ALI's foreign sales in 2023, up from 66% in 2022.
  • Chinese buyers' share declined from 10.7B in 2018 to 1.13B in 2023 due to POGO crackdown.
  • The shift reflects Marcos' pivot from China to the US in foreign policy and economic ties.
  • The changing foreign buyer profile impacts the Philippine real estate market and economy.