Property Appreciation

Should I Buy the Property Now? Or Save Money First and Buy It Later?

I was reminded of this frequent client question, particularly from first-time home buyers, when I heard the purchase price per square meter for a residential lot we were listing in Sikatuna Village, Quezon City.

Sikatuna Village, Quezon City Lot for Sale – P9.00 per square meter

That’s right. P9.00!!

Way back in 1953.

By September 2016, inner lots in the Sikatuna Village, UP Village, and Teacher’s Village area were already approaching P39,000 per square meter. By October 2022, the listing prices were reaching P87,500 per square meter. This tells us that the property appreciation of land values in the community, on average, was 14.3% annually for the past 69 years.

What about properties in Forbes Park? Did you know you could have purchased a lot in Forbes Park back in January 1956 for just P18 – P21 per square meter??

So, what are the asking prices in Forbes Park now? 2017 = P300k/sqm, 2018 = P350k/sqm, 2020 = P434k/sqm, 2022 = P525k/sqm…. For an average appreciation rate of 16.5% annually over the past 66 years.

This alone is a great argument against waiting to purchase a property.

Unless you can save and park your funds in an investment instrument that pays you higher than 14.3% – 16.5% per year, capital appreciation alone (the rate at which a property’s value increases) will far outstrip your capacity to save, and your saved funds’ ability to grow.

So do not wait. The best time to buy real estate was 50 years ago. The next best time to buy is now!