Philippine housing market shows resilience and growth

The market’s rebound and investment opportunities increase for the year 2023

The Philippine economy ended 2022 with strong growth. MDVEdwards/Shutterstock

The Philippines’ housing market is showing signs of improvement. With the average price of luxury condominium units in Metro Manila’s central business districts (CBDs) rising by 3.93 percent in 2022, the improvement was noted by  Global Property Guide. However, when adjusted for inflation, prices for luxury properties actually fell by 3.82 percent during the same period. On a quarterly basis, house prices rose by 1.59 percent in the fourth 2022 but declined slightly by 0.62 percent in real terms. 

Demand is also picking up, with pre-selling activity rebounding and 20,000 units sold in 2022, a 54 percent increase from the previous year. The housing market is projected to continue its recovery in 2023, supported by strong economic growth. The Philippine economy grew by 7.6 percent in 2022, following a 5.7 percent expansion in 2021. The government expects the economy to grow between six percent and seven percent this year.

Related: Philippine real estate forecasted to weather the storm in 2023

ABS-CBN Corporate emphasised on how the Philippine economy ended 2022 with strong growth, sparking interest in real estate investments for 2023. At a forum held by Colliers, experts discussed the outlook for property values and appreciation. 

Joey Bondoc, Colliers’ associate director for research, highlighted the positive impact of last year’s economic growth on the property market. He mentioned the rising interest in property acquisition across Metro Manila and the five percent growth in land value in key areas such as Makati, Ortigas, and Bonifacio. Bondoc emphasised the potential impact of infrastructure development projects scheduled for completion between 2023 and 2030 on land and property values. 

Richard Raymundo, Colliers’ managing director, discussed the benefits of investing in residential properties, including lower volatility, rental growth, and capital appreciation. He advised considering location, the developer’s track record, and affordability when selecting a residential property for investment. Additionally, Benitez Suites, a low-density condo development in Quezon City, was highlighted as an attractive investment option, with its property values growing by almost 20 percent since its launch in 2020.

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