Luxury condominium boom unveils the surging market beyond Metro Manila

The country faces a surge in demand, developer strategies, and global patterns shaping the luxury residences landscape

There is a predicted continued demand for luxury residences beyond 2023. MDVEdwards/Shutterstock

The Philippine real estate market is experiencing a surge in luxury condominium prices outside Metro Manila. The Philippine Star noted that cities such as Pampanga, Bulacan, Cebu, Davao, Bacolod, and Iloilo are witnessing this trend. Despite concerns about expensive borrowing costs affecting consumer uptake, Colliers attributes the rise in condominium demand to the increasing purchasing power of investors and end-users.

Colliers recommends that developers evaluate the feasibility of launching luxury properties, emphasising the importance of upgrading amenities and collaborating with local entities to widen their market reach. Joey Roi Bondoc, Colliers Philippines’ research director, notes the resilience of the luxury real estate sector, which weathered the pandemic due to sustained consumer interest since 2020.

In a related report, Business World revealed that the luxury condominium market constituted 34 percent of overall take-up in 2022, marking a significant increase from five percent in the previous year. Despite the impact of rising interest and mortgage rates, the firm predicts continued demand for luxury residences beyond 2023. Notably, central business districts such as Ortigas, Bay Area, and Fort Bonifacio have been focal points for this demand.

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The global trend of increased interest in luxury residences during the COVID-19 pandemic is not unique to the Philippines. The Bangko Sentral ng Pilipinas recorded a 27 percent year-on-year growth in nationwide property prices in 2020, the largest increase since 2016. This mirrors a global pattern observed by Bloomberg, where the demand for luxury residences in the US surged by 42 percent, the most significant growth since 2013.

The shift in preferences for larger living spaces and the desire for “holiday homes” outside Metro Manila is evident. People, having spent more time at home during extended quarantines, are reevaluating their residential options, with a growing interest in second properties, vacation homes, and houses with ample space for remote work and leisure.

The Property Report editors wrote this article. For more information, email: [email protected].