The real estate Philippines industry is observing the possible impacts on property sales of entry ban on Chinese tourists in the country. Chinese buyers boosted the property sector in recent years.
Philippine authorities have suspended flights from Wuhan, China, where the 2019 novel coronavirus originated. The mandated prohibition of Chinese tourists was triggered amid the escalating alarm on the spread of nCoV.
The Chinese are considered as one of the strongest buyers of properties in the Philippines and also the country’s second largest source of foreign arrivals.
Condominium units and other properties’ sales might be affected due to the banning of Chinese visitors.
According to an interview of Sunstar Cebu with Colliers International Philippines Senior Research Manager, Joey Bondoc, there have been said that when Chinese tourists visit the Philippines or specifically in Cebu, they enjoy the lifestyle and decide to buy condominiums.
Despite the feasible threat, as per Bondoc, he did not see an immediate impact of a ban on Cebu, particularly as only those tourists from Wuhan, China where the epicenter of the virus outbreak are restricted by the Bureau of Immigration.
Bondoc added that there will be a stable property demand for Chinese who are already established in Cebu but the potential market of the new tourists will really be affected.
Cebu is connected via air to several mainland Chinese cities, there is no direct flight from the province to Wuhan.
The CIP Senior Research Manager feared a significant impact if China will eventually rule a total restriction to its citizens to travel outside the country. He told SunStar Cebu that once the travel ban is widened or expanded, that will be the time to see the impact on the hotels and properties in Cebu.
“So the demand from the Chinese will still continue but the additional demand that comes from tourists will definitely be affected because it also depends on the Chinese government if they will now bar all Chinese from traveling outside,” he said.
Last year, China was topped as the second foreign source market in Central Visayas with 621,993 tourists, up 44.28 percent from 2017’s 429,306 visitors, as the data from the Department of Tourism reported. In the same year of 2019, Chinese tourist’s count reached over 700,000, conferred by the Chinese Consulate in Cebu.
The data from the Colliers shows that Metro Cebu’s condominium stock reached 38,800 units in 2018, 16 percent higher compared to 33,325 units in 2017 while it persists to prosper landscape developments.
Coronavirus (2019-nCoV) has already killed more than 80 people and infected thousands in China. The lethal virus has been spreading to several countries in Asia and other regions, lifting alarms on its prospective economic impact.