Real Estate Blog PHILIPPINES

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Cities still preferred by property seekers

Central business districts (CBDs) have showed gradual gains as cities recover from a softened demand, according to a report by real property developer Lamudi Philippines.

The coronavirus disease 2019 (Covid-19) pandemic has weakened the leads for high-end
cities in metropolitan centers, such as those in such as Makati and Muntinlupa, at the onset of the pandemic.

Legaspi Park in Makati City. Such features are in demand among property seekers.

Leads for these cities decreased at a lower year-on-year rate in the second half of 2020 compared to first half of the same year, pointing at a gradual improvement but still considered an improvement nonetheless.

Leads for Muntinlupa increased by 4 percent in January 2021 compared to the year before. Though leads for Makati in that same period decreased, it still contributed the second largest share of leads in January 2021 at 23 percent.

In addition to having a bustling commercial center, Makati hosts a concentration of green pockets amid walkable neighborhoods found in places such as Legaspi Village, Salcedo Village, and Poblacion — features that are in demand to property seekers.

Graphs shows the pageviews of properties in Central Business Districts

Pasig and Quezon City are also holding their own, posting impressive growth figures, with the former increasing by 21 percent and the latter by 26 percent in the second half of last year. Quezon City continued to attract most of the pageviews among cities with CBDs. This may be driven by its proximity to a large employee base from the universities in the area, as well as its access to industrial spaces in provincial cities up north.

Properties priced P6 million and above in CBDs continue to attract demand. Listings in CBDs priced above P20 million experienced the biggest growth in pageviews in the second half of 2020. In January 2021, listings within that price range contributed the largest share of pageviews for cities with CBDs at 31 percent.

Luxury rental properties in CBDs also exhibited the most growth in the second half of 2020 with pageviews for listings priced between P500,000 and P1 million increasing by 162 percent, and properties priced above P1 million rising by 205 percent. Given the positive trend, Lamudi sees demand for prime properties in CBDs for rent and for sale continuing to grow in the second quarter of 2021.

Despite not having CBDs, other cities in Metro Manila, labeled fringe cities, continued to rise in popularity in the second half of 2020. Pateros, which holds the smallest share of pageviews, attracted the largest growth in both pageviews and leads in the second half of last year compared to the first. Situated between Taguig and Pasig, the city is a convenient choice for yuppies looking to live near their offices in CBDs while enjoying lower prices per square meter.

Caloocan exhibited the highest growth in leads for the same period. The city is on its way to becoming the most significant driver of leads for fringe cities in 2021 as it contributes the greatest share of leads in January 2021 at 52 percent.

Marikina contributed 43 percent of all pageviews for the fringe cities assessed, owning the largest share of pageviews for the location group in 2020. Valenzuela, which saw a 65 percent surge in leads and a 58 percent increase in pageviews, earned the second highest.

Given this trend, developers and brokers are encouraged to watch out for vacant commercial and residential space in these areas.

Pageviews for all listings in fringe cities priced above P450,000 increased in the second half of last year, with properties costing between P9 million to P12 million experiencing the highest growth in pageviews for that period at 119 percent.

The report showed mid-cost housing as the most popular, with properties priced between P3 million and P4.5 million attracting the biggest share of pageviews in fringe cities at 23 percent.

With pageviews for high-end housing posting gains last year and as take-up in the nearby CBDs increases, Lamudi sees cities within the fringes of Metro Manila as excellent investment areas to watch out for in the months to come.

The assessed fringe cities started the year with higher annual figures for January 2021, with total pageviews increasing by 21 percent from January 2020.

One thing that can be gleaned here is that the local government units of these fringe cities have responded to the needs of their constituents amid the pandemic, ensuring their needs are met and this was seen as one key factor that contributed to the increase in demand.

Furthermore, these cities are located next to cities with CBDs and the low prices of property helped increase demand for property seekers who could not afford to live in the CBDs but are attracted by the low prices of the fringe cities as an alternative.

Article and Photo originally posted by Manila Times last April 6, 2021 and written by Aaron Ronquillo.