Residential Real Estate: Highlights from February 2020
Every year, Manila breaks out into chocolates and red hearts as we celebrate the month of love. The residential real estate market received much love too! Read on for the highlights.
More Growth, More Opportunities
Considering that 2020 started with a glut of demands from local and foreign residents, Lamudi reported that major cities like Makati, Mandaluyong, Taguig, and Quezon City have received a total of 60.59% of demand for the purchase of condominium units. This marks positive growth from 2019.
The opportunity is a positive one for development companies like Ortigas Land. Their new high-end luxury condominium, Residences at the Galleon, should generate a total of ₱16 billion by EOY, especially considering that Mandaluyong City is prime real estate for both locals and expatriates.
Cebu City meanwhile is the star of the Visayas, receiving 87.56% of the demand from the middle province. The demand comes from both local and foreign residents.
Because of this demand in Cebu City, Primeworld Land Holding Inc. took the opportunity to develop its first-ever condo in Cebu, the Primeworld Pointe: a 22-story tower that consists of a total of 374 units. Colliers reported that Primeworld Land Holding Inc. will also push through their 2 more projects in Cebu, these will be located in Fuente Osmeña and Banilad areas. The construction of Primeworld Pointe is expected to begin this March.
Different Expansions, Same Prices
Even though more condominiums and houses are being built in Metro Manila to accommodate the demand for residential space, Richard Raymundo, the managing director of Colliers International, stated that the prices of these spaces “remained affordable” despite continuous expansion in the region.
He pointed out that the most expensive residential property today was The Estate, which was located in Makati. Prior to this, he compared the property’s ₱550,000 per sqm price to other countries — New York’s residential spaces are 10x more expensive, while London’s spaces are 15x pricier. With prices as friendly as these for luxury real estate, it’s no wonder that foreign investors playing the real estate market view Metro Manila as prime investment land.
No Slowdown Sighted Despite Coronavirus
The Lobien Realty Group never saw a slowdown of demands and supplies of residential spaces in the country. The group expects that 15,000 units will be completed for the first quarter of 2020. Lobien remains optimistic about the growth of the residential real estate market despite the cases of coronavirus in the country.
An opposite thing that happened to South Korea this month as their residential real estate market dropped by 3.6% weekly because of the spread of the virus. It sparked slow progress in the market’s growth as the government is planning to do “unprecedented” steps to fight the virus.
The Philippines may not yet see a slowdown in the market. Nevertheless, we all have our fingers crossed that the Corona virus’ time will come to a halt, very soon.
Visit https://housinginteractive.com.ph/ for more updates in the residential real estate market!
Stay safe everyone!