The year of the Tiger will see the local property sector roaring and regaining its lofty stature, according to property analysts.
Citing data from First Metro Securities Brokerage Corp., Claro Cordero Jr., director and head of research, consulting and advisory services, Cushman and Wakefield told the BusinessMirror the next 12 to 24 months will bring good times for the Philippine property sector boosted by a better operating environment and eased mobility while the increase in the rate of vaccination is seen to aid a sustainable economic reopening.
The residential segment, according to Cordero, will experience a boom propelled by the stable household purchasing power, labor market recovery, and continuous flow of overseas Filipino remittances, as well as the availability of credit to consumers. Moreover, the easing of restriction will lead to faster pickup of sales in the retail segment and will finally put the rental reprieve to a halt. While it is observed that rental charges are at currently 30 percent to 50 percent of the normal levels, “landlords were now reevaluating rental concessions rather frequently to allow them to price in the recovering operating environment.”
Meanwhile, Colliers Philippines Associate Director Joey Bondoc expects the rise in remittances of the overseas Filipino workers (OFWs) would spur growth in residential demand. Data from the Bangko Sentral ng Pilipinas (BSP) showed that remittances in September 2021 reached $2.7 billion (P135 billion), up 5.2 percent YOY. For 2022, BSP forecasts a 4-percent growth in remittances.
Colliers believes the country’s work force population led by the millennials will sustain demand for integrated communities. “The concept of building offices, condominiums, malls, schools and hospitals within one community satisfies the millennials’ demand for greater mobility and convenience,” Bondoc said.
After two consecutive quarters of year-on-year (YoY) decline, the Bangko Sentral ng Pilipinas’s (BSP) Residential Real Estate Price Index (RREPI) posted a growth of 6.3 percent in Q3 2021, with condominium units posting a price increase of 13.6 percent YoY while the prices of townhouses grew by a massive 37.1 percent YoY. Modest decline was recorded in duplex housing units by 0.2 percent YoY while single detached/attached houses contracted by 4.2 percent YoY. The improvement in the overall RREPI was a result of the slight recovery of residential property demand due to brighter economic prospects while the low-interest rate environment boosted the new residential property loans by 51.1 percent YoY in Q3 2021. Residential prices in the National Capital Region also exhibited a faster growth by 11.4 percent YoY as compared to residential units outside Metro Manila which grew by 4.9 percent YoY.
Bondoc said the recovery of residential prices gathered speed along with the better-than-expected performance of the economy beginning in Q3 2021, encouraging an increase in residential transactions.
Going digital towards growth
Bria Homes, a subsidiary of Golden MV Holdings, took the digital route to remain competitive despite the pandemic.
Eduardo Aguilar, president and COO of Bria Homes told the BusinessMirror transitioning to digital by boosting its online presence and allowing virtual transactions to thrive enabled the company to continue selling its products to the affordable market.
“To date, Bria Homes’ strong digital connections steadfastly ensure its prospective homebuyers’ safety as the latter explore the vast range of options Bria Homes offers. Imagine getting a glimpse of any of Bria Homes’ 50-plus residential projects from the security of their homes by immersing in Bria’s 360 Virtual Tours,” Aguilar said.
The official virtual tours also offer prospective clients from anywhere in the world to check the developments of their choice and help them visualize what their new home would look like.
In response to the rising demand for vertical living, Aguilar said Bria will accelerate construction this year of its vertical villages. “Primed to cater to the needs of mobile young professionals and starting families, these midrise condos will offer cozy and intimate co-living in elegant walk-up buildings where residents will be encouraged to forge small, tightly knit communities,” he explained.
Apart from featuring compact, efficiently laid-out living spaces, Aguilar said the Bria vertical villages will have a fine set of amenities rarely offered in economical midrise condos such as communal clubhouses with function halls, swimming pools and spacious play areas, and complete gym facilities. There will be jogging paths, landscaped gardens, and walkable green spaces to encourage residents to engage in active and holistic lifestyles.
He said all vertical projects will be strategically located to allow residents to have easier access to economic centers.
Aguilar is confident the company will be one of the property market’s best performing companies in 2022 moving forward.
“Bria Homes takes pride in offering the best value-for-money housing to all aspiring Filipino homeowners,” Aguilar said. “As the pandemic continues to reshape the way Filipinos spend or invest their money, our resolve to deliver well-designed homes of choice to prospective buyers can only grow stronger.”
Meanwhile, PHirst Park Homes recently launched its ninth development and the farthest project in the south as of 2021. “This is a 23-hectare development. This will be the future home of around 2,000 Filipinos here in Tayabas, Quezon,” shared PPHI General Manager for Tactical Sales Robert Gil during the launch of PHirst Park Homes Tayabas.
The property launch also presented the beauty of Tayabas and the grandeur of PPHI properties. This four-part “amazing-race” inspired digital miniseries, participated by online influencers and PPHI employees, unveiled the different activities that adventure-seeking homeowners can appreciate inside PPHI Tayabas. The unique launch did not only showcase the fascinating ecological wonders of Tayabas, Quezon, it was also an avenue that recognized the rich heritage and culture of the city.
“We’ve been all over the North, we’ve been all over the South. And we will continuously develop and provide the units we call beautiful, complete, and affordable homes in the whole country,” Gil said.
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Article was originally published in Business Mirror and written by Rizal Raoul Reyes.
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