Segment to hit a high, price-wise, with new project
Spurred in part by attractive rental yields, demand for luxury condominiums will remain strong in Metro Manila in the next 12 months, predicts Colliers Philippines in a recent report.
The Philippines’ national capital region boasts a gross residential yield of 5.1 percent, trailing only Jakarta (8 percent) and Ho Chi Minh City (6 percent), the consultancy noted in its 2019 forecast for the country.
Affluent locals, foreign investors, and offshore gaming firms have sustained demand for luxury residences in the metropolis, Colliers research showed.
“The luxury market in the country’s capital is relatively small but demand has been stable over the past few years. The projects being leased out or sold to the secondary market continue to receive strong demand,” wrote Colliers Philippines research manager Joey Roi Bondoc.
“This entices affluent locals and foreign investors to look for similar developments in Metro Manila,” Bondoc added.
While the luxury residential market in Metro Manila is reputed for its relatively low price points, that may soon change. Prices in this segment are predicted to hit PHP400,000 (USD7,608) per square metre with the completion of a 3,500-square-metre venture by SM Prime and Federal Land along Ayala Avenue in the city of Makati.
Pent-up demand is expected to move mid-income condominium developers into scaling up and constructing high-end projects in emerging business districts such as the Manila Bay Area.
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