The continued weakening of the Philippine peso may dampen demand from local real estate buyers and investors, although it may attract foreign buyers into the country, a property analyst said on Monday. Cordero said that a depreciating peso will have short- and long-term effects on the country’s property markets. As interest rates increase, Cordero noted that the cost of borrowing money from banks will also increase, affecting borrowers’ existing and future decisions to avail of housing loans or mortgages. “In the long run, it may mean foreign buyers will be drawn into the property market and [this would]drive property prices up,” Cordero said. “As property prices become more expensive, the local buyers will be constrained from investing further,” Cordero noted.

Source: Manila Times December 05, 2016 17:22 UTC