Experts anticipate the comeback of the Philippine residential market
Filipino buyers are found more likely to purchase a second home (41 percent) than the average in Asia (27 percent) and the world (33 percent)
The Philippine residential market is expected to make a comeback this year as coronavirus cases and positivity rates steadily decrease, according to BusinessWorld.
Janlo C. de los Reyes, head of research and consultancy at JLL Philippines said in a webinar last January that “Return to office has led to the increase in demand from professionals working in the business hubs, who may have reactivated their leases or are looking for accommodation near their workplace.”
The Bangko Sentral ng Pilipinas’ (BSP) Residential Real Estate Price Index (RREPI) increased by 6.3 percent year-over-year (y-o-y) in Q3 2021, following two consecutive quarters of annual decline. This indicates an influx in residential property prices fueled by demand for condominiums and townhouses.
For international buyers, Santos Knight Frank’s Global Buyer Survey revealed that, “[A]n overwhelming majority (85 percent) of local respondents have said that they moved houses since COVID-19 began, a decision that was primarily driven by the need for outdoor space (33 percent), downsizing (17 percent), and access to better amenities (17 percent).”
Filipino buyers are also found more likely to purchase a second home (41 percent) than the average in Asia (27 percent) and the world (33 percent).
Meanwhile, according to a report published last December by Colliers Philippines, purchasing power is increasing in provinces such as Bulacan, Cavite, Laguna, and Pampanga.
More: Why the Philippine real estate should be on your radar this year
Even with the COVID-19 pandemic, the luxury real estate sector has stayed afloat compared to other residential segments, according to INQUIRER.net.
Colliers senior director of valuation services Paul Vincent Ramirez shared that “As the fortune of the target market of luxury properties was undiminished in the wake of COVID-19 pandemic, the segment has shown resilience.”
“It remains to be seen, though, if the changes that fueled the shift during the pandemic are permanent or merely a reaction to an extraordinary circumstance,” he added.
Forbes Park is such an example in the prime property sector, which houses the Philippines’ top 1 percent.
Colliers Philippines estimates that residential demand will be driven by an increase in remittances by overseas Filipino workers (OFWs), which are expected to grow by 4 percent this year based on BSP estimates of PHP135 billion (USD2.5 billion) in September.
The Property Report editors wrote this article. For more information, email: [email protected].
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