Dumaguete real estate market
Why we are seeing wide pricing variations
What is happening in the Dumaguete real estate market is that there is such a huge influx of both foreigners and OFWs (returning to the Philippines with money in their pockets)which has damaged the stability of the market. To those people that are new to the Philippines they will look at property and think of how cheap it is in their currency and in relation to their earning power in the country they are coming from.. The second part of the problem is the sellers and there are several factors that come into play. Number one is greed, and it is not something that I feel right criticizing. A lot of the sellers of “raw land” are people that have been dirt poor all their life, living hand to mouth and now have the opportunity to radically alter the financial course of their life and that of their families. They usually are people who have had little opportunity for a proper education and and not in full comprehension of market values and the basic economic laws of supply and demand. Then when you throw this buyer who is ignorant of true land values together with a seller who is basically looking to win the lottery, some purchases get made that are really out of whack price-wise. Then a neighbor or relative hears of this person’s incredible windfall and they figure they might as well try the same. There are no real “bad guys” in this scenario but it does cause a lot of properties to be listed that are extremely over-valued.
Number two is the existence of both unscrupulous speculators that will acquire land cheaply and deliberately look for unknowledgebale purchasers as well as a third situation where there are a several “unlicenced brokers” who are all demanding a cut or commission. I have sadly seen in some such situations where the landowner is hardly getting more net value out of the transaction than the myriad of “brokers” that have had minimal involvement in setting up deal.
In short , there is definitely land to be had that is attractive and priced right. It just takes some work, knowledge and experience to find those places. As professionals in the Dumaguete real estate market, that is what we try to bring to the table.
Information on Dumaguete City