<p><img alt="" src="/documents/10204/0/at-home-with-filipino-investor-lead-compressor.jpg/ce1d1038-d117-4875-9782-660a8b737fff?t=1531389958258" style="width: 1400px; height: 640px;" />A first look at businessman Abe Tolentino’s house on the remote southern tip of Siargao — a teardrop-shaped island off the north-eastern coast of Mindanao that until very recently was itself well off the beaten tourist track — immediately begs the question: would you live here? Could you live here? What if you suddenly needed toilet roll at 2am and there was nothing around but a star-spangled night sky, a deserted beach, and miles of thick tropical jungle?</p> <p>On a visit to Abe’s two years ago, a few friends and I powered on motorbikes along a then-unfinished winding highway for more than half an hour from the town of General Luna to a small fishing village called Union. It was just after eight in the morning, but in the island’s peculiar rhythm, where the bustle of domestic activity — cooking, yard-sweeping, poultry feeding — happens just after first light, rush hour was long over and most of the residents had retreated indoors as the sun’s blaze began to penetrate the shade of towering coconut trees. There were no markers and no locals to consult for directions.</p> <p>We found the house at the end of a gravel-paved driveway, and after a quick flurry of introductions with Abe, settled down to breakfast of dried salted fish, garlic rice and free flow fresh coconut juice. Heavy-lidded from the meal and the soft, briny breeze, we then took our cups of coffee and strolled across the front lawn down a sandy path and within a few metres we were on the beach. A gap in the natural screen of coconut trees and wild flowering plants revealed a killer view: the bottle-blue sea, a smattering of sandbars and smaller islands and the Pacific Ocean. Would we live here? It now seemed like an inane question to ask.&nbsp;</p> <p>“It’s not easy living by a tropical jungle though,” Abe says, enumerating a litany of challenges he’s faced over the years, including a seemingly relentless onslaught of pests. “Termites are an issue in the tropics, and so the house and the grounds need constant maintenance.”&nbsp;</p> <p><img alt="Abe Tolentino's vision was for a rustic but comfortable base from which he could surf the nearby waves" src="/documents/10204/0/at-home-with-filipino-investor-5-compressor.jpg/0c919203-00db-42cd-9c8a-5592b46d239f?t=1531390384561" /></p> <p>But as a young man fresh out of college, he was certain of little more than three things: that he was permanently stoked for surfing, wanted to spend most of his time riding waves, and that he wanted to live somewhere where he could do exactly that.&nbsp;</p> <p>“All I really wanted to do was surf,” he says. So, he sold his car in Manila and relocated to Siargao where his family had a home in the main port town of Dapa, and where they had purchased a piece of beachfront property two years before. The parcel of land was adjacent to a larger lot that already belonged to his mother — handed down across five generations — and all together the combined property formed 4.5 hectares of mostly active coconut plantation that tapers down to a point called Punta Dolores, giving Abe’s would-be home an enviable 250 metres of beach.</p> <p><a href="http://property-report.com/detail/-/blogs/khmer-entrepreneur-opens-the-doors-to-his-spectacular-siem-reap-hidea-10" target="_blank"><strong>More:&nbsp;Khmer entrepreneur opens doors to his spectacular Siem Reap hideaway</strong></a></p> <p>As real estate goes, Punta Dolores in 2004 wasn’t exactly what you’d call a prime location. Strung out on the southern end of the island, it was a slow ride on unpaved roads to the bigger towns on either side — Dapa to the west, and the then-budding tourist spot of General Luna to the northeast, where a tight and clean wave called Cloud 9 was drawing a seasonal crowd of hardy travellers and surfing superstars from as far away as the US and Europe.&nbsp;</p> <div class="pull-quotes-container">A gap in the natural screen of coconut trees and wild flowering plants revealed a killer view: the bottle-blue sea, a smattering of sandbars and smaller islands and the Pacific Ocean</div> <p>Before the island’s one-strip airport began accommodating commercial flights in the early 2000s — starting off with 19-seater turboprops that drifted with the strong winds, followed by bigger aircraft that could fly more than 100 passengers post-airport renovation in 2008 — it was a long and often tortuous journey involving all modes of transport: air, sea and land.&nbsp;</p> <p>“At that time Siargao felt very isolated, very quiet, and hard to get to,” says Abe, who moved to Dapa and took over his dad’s local cable television business called Green Island, as well as the family’s land holdings across the island, in 2004.</p> <p>In 2005, he started building on Punta Dolores property, hiring architect Carla Suiza, a college friend and fellow surfer — who at the time had yet to complete a degree in architecture — to design a “modern, Asian tropical, open-plan house”.&nbsp;</p> <p><img alt="Tolentino achieved his vision through liberal use of wood and straight lines throughout the design" src="/documents/10204/0/at-home-with-filipino-investor-2-compressor.jpg/c82af288-5e3e-4ef2-b6ed-6398572044f8?t=1531390543783" /></p> <p>The idea was to play up the property’s most tantalising features: the views, the cooling breeze, the rhythmic sound of rustling of trees. “It took a lot of logistics to bring everything into Siargao at a time when there really wasn’t anything available yet on the island. We had to import a lot of things from Manila. Toilet bowls, large tiles, electrical fittings, plumbing fixtures. Everything.”&nbsp;</p> <p>Slabs of local hardwood had to be ferried over from neighbouring Siargao del Sur. A team of carpenters and a foreman from the northern province of Pampanga were hired to supervise construction.&nbsp;&nbsp;</p> <p>“I wanted high ceilings, lots of straight lines, and lots of wood which I would later regret,” he says, describing the frustration of dealing with warping wood. Among the challenges of tropical living is the weather, and seasonal typhoons barrelling in unobstructed from the Pacific regularly whip the island with wind and torrential rain. “Over the years, we’ve renovated the structures to be able to deal with that better.”</p> <p><img alt="The property subscribes to a communal aesthetic that is in keeping with Siargao's popularity with young weekenders from bigger cities in the Philippines" src="/documents/10204/0/at-home-with-filipino-investor-4-compressor.jpg/2ae29be6-6fff-4c17-acd8-386be04b06f2?t=1531390641314" /></p> <p>It took two years to complete the two houses on the property, which are similar in look and feel — two-storey structures with sloping roofs, concrete walls warmed by plenty of wooden flooring and beams, wraparound windows dressed only by white, feather-light gauzy curtains. Both though serve their own purpose. The main residence was built with one bedroom for Abe on the second floor, and a dining area, a kitchen, a living area and an office on the first floor.&nbsp;</p> <p>Siargao has now become arguably the hottest island destination in the Philippines — in 2017, the number of daily flights to the island jumped from two to six. The road to Union was also completed last year, making Abe’s home more accessible (now just under 20 minutes) and, more importantly, available: something he has capitalised on by listing the guesthouse on Airbnb. “Tourists have started to explore other parts of the island, including smaller towns away from General Luna,” says Abe. “It seemed like a logical thing to open up the place.”&nbsp;</p> <p>Yet while the increase in guests means that Abe needs to engage his social skills more than he used to, some things have barely changed. At least once a day, after an unhurried breakfast, Abe likes to sit in his favourite spot: a patio, sheltered by a trellis with overhanging vines. There he can kick back, relax and look out to the same view he came for 15 years ago.</p> <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/266502" target="_blank">Issue No. 146 of PropertyGuru Property Report Magazine</a></em></p>

<p><img alt="" src="/documents/10204/0/us-investment-feature-lead-compressor.jpg/d0634aed-974e-425f-8391-169a2815b010?t=1530701233578" style="width: 1400px; height: 640px;" />While its glitzy allure and air of unshakeable confidence may be one of the sticks critics of the United States use to beat it with, there’s no denying the widescreen appeal of the world’s preeminent superpower. Investors have long eyed its cities in the hope of snaring their own tangible piece of the American Dream. And when you look at the evidence, it’s impossible to blame them.</p> <p>In Miami, plentiful sunshine and golden beaches are among the drawcards. New York creates its own legends, and high-rise apartments overlooking Central Park are among the most sought after real estate on the planet. And, of course, there’s countless others, including Los Angeles with its timeless Hollywood quality and San Francisco and Seattle: two perennial stars on the nation’s western seaboard.</p> <p>Indeed, US cities have long offered potential property buyers both prestige and impressive returns, with the high-end market even surviving the calamitous financial crash that shook the world a decade ago.</p> <p>Although premium real estate in the United States has remained a relatively safe investment – at least for those who can afford and properly finance a purchase – there has been a notable change on the buyer side, as increased globalisation brings investors from different parts of the world.</p> <p>As is so often the case these days, much of this interest comes from China. In 2016, Chinese outbound real estate investments increased by 56 percent, reaching a record USD28.2 billion.&nbsp;China&nbsp;also became&nbsp;the largest&nbsp;global cross-border real estate investor, overtaking the United States.</p> <p>This historic high led to tightened capital controls, implemented by Chinese State Control in late 2016 as authorities sought to stem capital flight amid fears of currency depreciation. Investment in luxury property abroad subsequently experienced a slowdown in early 2017 but, interest from Chinese buyers was once again on the up again by the close of the year.&nbsp;&nbsp;</p> <p><img alt="San Francisco is widely known for its accessibility, infrastructure, and highly educated populace, factors that are a proven hit with investors" src="/documents/10204/0/us-investment-feature-4-compressor.jpg/a9ba371e-dd2f-4619-9697-04dafb0dae23?t=1530701832719" /></p> <p>Enquiries about high-end purchases abroad have remained strong throughout 2017, Byron Burley, head of North America at Chinese international property website Juwai, says. The combination of positive market trends and openness to foreign investment, plus its top status in sectors such as education, culture and tourism, means the US remains the first choice for many.</p> <p>“US property is a less volatile investment than securities, gold, or even cash,” he says. “In luxury destinations, prices are more resilient and likely to bounce back from any downturn because there are only so many top locations in the world. Investors can simply wait out down markets and continue to occupy or generate revenue from their property in the meantime.”</p> <p>Luxury real estate has morphed into a new world currency, according to Jonathan Miller, CEO of Miller Samuel, a residential real estate consulting company covering the New York metro area.</p> <p><a href="http://property-report.com/detail/-/blogs/you-can-now-own-this-star-studded-american-estate-with-2m-in-landscaping" target="_blank"><strong>More:&nbsp;You can now own this star-studded American estate</strong></a></p> <p>“It provides investors with a tangible asset and a cachet that cannot be found within the financial markets. It’s as if emboldened investors zoomed out of their local Google Earth view to discover the wider global perspective on luxury real estate.”</p> <p>Miller asserts that it has been the upsurge in international investor interest in the US that has helped its luxury housing market recover from the 2008 crash, from which it suffered major collateral damage. &nbsp;</p> <p>“Even as the dollar has strengthened in recent years, it did not appear to weaken demand from international buyers,” he says. “The trophy property has become a new market category that does not follow the rules and dynamics of the overall marketplace.”</p> <div class="pull-quotes-container">Many Chinese believe that the Trump brand represents the fulfilment of the American Dream through savvy investments and success in real estate trading</div> <p>The narrative of Asian investment in US luxury property, however, defies easy categorisation. While seen as an aberration by many – especially those of a liberal bent – the presidency of US commander in chief Donald Trump has boosted Chinese interest in US real estate. A report by Juwai published in late 2017 found that many Chinese believe that the Trump brand represents the fulfilment of the American Dream through savvy investments and success in real estate trading.</p> <p>Legislation passed under Trump has not yet affected property investors from abroad. The EB-5 programme, which grants US green cards to foreigners who park their cash in investments of at least USD500,000 – and has been so popular in Asia it is referred to as the “golden visa” – was set to expire at the end of September but was given a reprieve by Congress. At the time of writing, its future is still to be decided.</p> <p>Juwai’s Burley says many of his clients make general enquiries before getting down to the nitty-gritty. “Our high-net-worth investors often start property hunting before they even know where they want to buy. They tell us things like, ‘I’d like a USD15 million home in Manhattan, Los Angeles, or Miami. What are my options?’ These buyers are looking for the best combination of lifestyle and long-term investment quality.</p> <p>“But in some ways, investors in all these cities have the same motivations of lifestyle, wealth protection, and education. Los Angeles is closer to China and has its unique California characteristics. Miami offers lower prices and beachfront towers with ocean views, while New York offers glamorous city living.”</p> <p><a href="http://property-report.com/detail/-/blogs/why-southeast-asia-is-still-prime-quarry-for-chinese-investors" target="_blank"><strong>More:&nbsp;Southeast Asia is still a prime target for Chinese property investors</strong></a></p> <p>Indeed, you don’t need to delve too deeply for attractive selling factors in many of the US investment hotspots. &nbsp;Los Angeles beat out London as the new hot spot for global real estate investors in the third annual Schroders Global Cities 30 Index, released in June 2017. Its success was attributed to well respected colleges such as UCLA and Pepperdine and start-up tech companies such as Snapchat and Pandora, as well as its promise of a gilded Californian lifestyle.</p> <p>Also on the rise was Boston, due to its proximity to top Ivy League colleges such as Harvard and Yale, and Chicago, which defied headlines about inner-city crime to jump to fourth place in the list. Emphasising US pre-eminence as an investment hotspot was the fact that its cities took 18 of the top 30 spots on the index.</p> <p>The huge Asian diaspora in US cities is also a major factor, fuelling interest from buyers looking for a community-rich location where they will be able to settle in easier and make connections.</p> <p><img alt="With its warm Californian climate and movie-star allure, Los Angeles has become a huge favourite for overseas investors in real estate" src="/documents/10204/0/us-investment-feature-2-compressor.jpg/314d0546-fb4d-445e-a3a1-337ffd0df0e4?t=1530702224111" /></p> <p>Some high-end investors buy property purely for future financial yield, but many buyers are looking for property for specific reasons. These include migrants moving for work, parents investing in property for children who are studying in the US and retirees looking for a second home abroad.</p> <p>And the better a city’s infrastructure, technological assets, and accessibility, the more appeal it has. A report by Savills, looking at the top ‘Tech Cities’ worldwide in 2017, studied hundreds of factors, from how talent-rich a city is, to the price of a latte, and grouped these metrics into categories including ‘Business Environment’ and ‘City Buzz and Wellness’. New York City, Seattle and San Francisco all feature in the top 20.</p> <p>So once buyers decide on a location, be it for work, study or leisure, what kind of accommodation are they looking for? Jeanette Rice, CBRE’s head of multifamily research for the Americas, says that in the urban cores, both mid-rise and high-rise are popular.</p> <p><img alt="Another US city that is famous for its good weather and high living quality is Miami" src="/documents/10204/0/us-investment-feature-3-compressor.jpg/030b775d-f2ed-4c72-95a9-6ec363995e07?t=1530702163715" /></p> <p>“There’s been a lot of new supply added in the past few years – too much to be quickly absorbed,” she adds. “Demand is also very good for the newer product being built in the suburbs, but most of it is being built for relatively young, well-paid professionals, often single and often without children.”</p> <p>With an increase in real estate prices, and space at a premium in prime areas such as Manhattan, Miami’s South Beach and around Silicon Valley in California, the make-up – and the layout – of US cities has altered considerably.</p> <div class="pull-quotes-container">The top cities may well remain such, but there are other destinations that have high momentum with Asian buyers</div> <p>While there are many who bemoan the gentrification and disintegration of long standing communities, as well as the often massive hikes in property prices, the counter-argument goes that cities in the US have become safer, more appealing places overall to invest in property.</p> <p>“Centres of gentrification such as Williamsburg and Long Island in New York and SoMa in San Francisco offer lots of new developments and are highly appealing to younger households,” Rice says.</p> <p><a href="http://property-report.com/detail/-/blogs/grey-gardens-finally-sold-for-15--1" target="_blank"><strong>More:&nbsp;Grey Gardens finally sells for $15.5m</strong></a></p> <p>As the geography of cities changes, and real estate space becomes tight, it seems buyers have started to increasingly turn to secondary markets.</p> <p>“The top cities may well remain such, but there are other destinations that have high momentum with Asian buyers,” Byron says. “San Diego, Chicago and Atlanta are all examples of cities with solid growth in Chinese buyer inquiries in the third quarter of 2017. Savvy investors are already eyeing up property in these up and coming locations.”</p> <p>As global power appears to shift towards Asia, US preoccupation with its seemingly dwindling status and how to regain its mojo looks likely to be one of the chief narratives of our time. However, when it comes to luring rich foreigners to its cities, its seems little effort is needed in making investors heed the call of Uncle Sam.</p> <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/266502" target="_blank">Issue No. 146 of PropertyGuru Property Report Magazine</a>&nbsp;&nbsp;</em></p>