






{"id":24424,"date":"2021-07-13T14:10:59","date_gmt":"2021-07-13T07:10:59","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=24424"},"modified":"2024-09-23T19:18:08","modified_gmt":"2024-09-23T12:18:08","slug":"key-demand-drivers-for-the-philippines-residential-real-estate-market","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/key-demand-drivers-for-the-philippines-residential-real-estate-market\/","title":{"rendered":"Key demand drivers for the Philippines residential real estate market"},"content":{"rendered":"<p><span class=\"TextRun SCXW200009024 BCX0\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW200009024 BCX0\">Property developers and owners are encouraged to\u00a0<\/span><span class=\"NormalTextRun SCXW200009024 BCX0\">monitor<\/span><span class=\"NormalTextRun SCXW200009024 BCX0\"> the market\u2019s changing demands<\/span><\/span><span class=\"EOP SCXW200009024 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_24425\" aria-describedby=\"caption-attachment-24425\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-24425 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/07\/shutterstock_1668679810.jpg\" alt=\"\" width=\"1000\" height=\"577\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/07\/shutterstock_1668679810.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/07\/shutterstock_1668679810-400x231.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/07\/shutterstock_1668679810-600x346.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/07\/shutterstock_1668679810-768x443.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-24425\" class=\"wp-caption-text\">In Mandaluyong, Manila, and Pasig, market discounts range from three to 16 percent. MichaelDEdwards\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">According to property consultancy firm\u00a0<\/span><a href=\"https:\/\/www.colliers.com\/en-ph\/research\/colliers-quarterly-property-market-report-q1-2021-philippines\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Colliers,<\/span><\/a><span data-contrast=\"auto\"> the Philippine real estate market is starting to show signs of recovery as developers switch up their marketing tactics and as opportunities for property buyers rise across different sectors.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In Q4 2020, the pre-sale market take-up reached 6,000 units, a 53 percent decline from the 12,900 units in Q4 2019. This descent prompted developers to introduce an array of promotions to entice buyers.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Developers in Mandaluyong, Manila, and Pasig offer market discounts ranging from three to 16 percent. Others provide lower reservation fees, split or zero downpayments, and free items, like gadgets, furniture, or appliances.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">OFWs lead as major homebuyers in the Metro<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Affordable to mid-income condominium transactions (USD34,000 to USD119,800) surged in Metro Manila during the first quarter of the year, primarily driven by remittances from Overseas Filipino Workers (OFW).<\/span><\/p>\n<p><span data-contrast=\"auto\">Colliers\u00a0believes that developers\u00a0&#8212; including\u00a0Wee Community Developers, Inc.,\u00a0Metroworx\u00a0Properties, Inc.,\u00a0<\/span><span data-contrast=\"none\">Robinsons Land Corporation, and other\u00a0<\/span><a href=\"https:\/\/www.asiapropertyawards.com\/en\/luzon-visayas-mindanao-developers-emerge-victorious-at-8th-propertyguru-philippines-property-awards\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">PropertyGuru Philippines Property Award-winning\u00a0developers<\/span><\/a><span data-contrast=\"none\">\u00a0&#8212;<\/span><span data-contrast=\"auto\">\u00a0will continue to cater to this market.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The firm\u00a0also\u00a0advised\u00a0developers to keep an eye on the pandemic situation from major sources of remittances,\u00a0namely\u00a0the United States, Saudi Arabi, and Singapore that accounted for 50%\u00a0of total remittances from January to February 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/manilastandard.net\/business\/biz-plus\/359382\/affordable-residential-real-estate-thrives-amid-pandemic.html\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Manilastandard.net<\/span><\/a><span data-contrast=\"auto\">\u00a0added that\u00a0home loans reached a new high\u00a0during this time, with the\u00a0Home Development Mutual Fund or the Pag-IBIG Fund\u00a0recording\u00a0a total of USD 1.38 billion worth of loans\u00a0released\u00a0from\u00a0January to April 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Opportunities in\u00a0JVs\u00a0and\u00a0luxury developments<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In the report, Colliers\u00a0stated that luxury projects often receive\u00a0the least impact during an economic downturn, while\u00a0joint venture projects\u00a0between a local and a foreign company are normally the most expensive in the market for these\u00a0come with cutting-edge amenities and facilities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Yet even though these types of developments are sold in a higher price range, the median take-up hit 85\u00a0percent in the end\u00a0of 2020.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cPhilippine developers should seize opportunities in the market by further exploring partnerships with foreign firms,\u201d urged Colliers. \u201cWe expect more luxury projects to be<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><span data-contrast=\"auto\">launched in the market, and these are likely to include joint venture developments.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Fringe areas to watch out for<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In the past few years, developers have begun to consider constructing in fringe areas to accommodate their need to develop additional projects. A survey conducted by the consultancy firm in February 2021 discovered that over 70 percent of respondents intend to develop a property in the Mandaluyong and Alabang-Las Pi\u00f1as areas in the next 12 months.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In 2020, the said areas\u00a0made up for 21 percent of the overall\u00a0take-up\u00a0for mid-income to luxury projects. The peripheral areas were also a hotbed for new developments\u00a0with the continued launch of new projects\u00a0by\u00a0PropertyGuru\u00a0Philippines Property Award-winning developers\u00a0SM Development Corporation and DMCI.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With residential\u00a0developers examining the feasibility of new project launches in major areas across the country\u2019s capital, the firm expects a recovery in new residential supply in 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">Know of any award-worthy homes, condos, flats, or other real estate projects in the Philippines? Nominate them for the 9th Philippines Property Awards on or before 20 August 2021. Simply visit <\/span><\/i><a href=\"https:\/\/www.asiapropertyawards.com\/en\/award\/philippines-property-awards-2021\/\" target=\"_blank\" rel=\"noopener\"><i><span data-contrast=\"none\">asiapropertyawards.com\/en\/award\/philippines-property-awards <\/span><\/i><\/a><i><span data-contrast=\"none\">for more details.<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><em>Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email:\u00a0<a class=\"editor-rtfLink\" href=\"mailto:gynen@propertyguru.com\" target=\"_blank\" rel=\"noopener noreferrer\">gynen@propertyguru.com.<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Property developers and owners are encouraged to\u00a0monitor the market\u2019s changing demands\u00a0<\/p>\n","protected":false},"author":9,"featured_media":24425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[2067,129,302,638,512],"class_list":["post-24424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-homes","tag-philippines","tag-philippines-property-awards","tag-real-estate","tag-residential","news_country-philippines","news_author-gynen-kyra-toriano"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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