Residential real estate prices (RREPI) increased by 0.8 percent year-on-year in the last quarter of 2020, mainly driven by the growing demand for properties in areas outside Metro Manila, the Bangko Sentral ng Pilipinas reported, as cited in Philstar. The RREPI climbed by 2.4 percent on a quarter-on-quarter basis.
The residential costs in areas outside the capital region increased by 5.9 percent year-on-year. Meanwhile, prices in Metro Manila slumped by 4.8 percent, a decline for a second consecutive quarter. The growth in real estate prices points to a shift in the market’s preferences.
Price Performance of Real Estate Types
Condominium costs continued to contract for the second straight quarter by 8.4 percent year-on-year in the last quarter of 2020. Even vertical developments in the provinces experienced a decline in prices. According to the central bank, the slump may be due to the delay in new launches and the weak interest in temporary residences in the midst of the pandemic.
On the flip side, the prices of duplexes saw a spike of 20 percent. Townhouses experienced price growth of 16.1 percent, while the single-detached and attached houses became 4.7 percent more expensive.
According to Joey Bondoc, Associate Director for Research at property consultancy firm Colliers International Philippines, the growing demand for horizontal projects will further support the increase of residential real estate costs. This movement will likely persist for the near to medium term.
Shift to Nearby Provinces
Lamudi has been observing the movement towards areas outside the capital region since the pandemic began. In the 2020 trend report titled Hotspots Unwrapped: 2020’s Most Popular Locations, more than half of the most in-demand provincial cities were in the regions located near Metro Manila. These include Bacoor, Antipolo, Angeles, Dasmariñas, Imus, Calamba, and San Fernando, belonging to the Central and Southern Tagalog regions.
Other than the availability of open spaces, it can be noted that these places are expected to be more accessible in the next few years, as they stand to benefit from massive infrastructure projects sponsored by the national government. Cities in Cavite, for instance, will soon see the completion of the LRT-1 Extension, an improved railway system stretching from Baclaran to Bacoor.
According to a report published by the Philippine News Agency (PNA) last December, the construction project was already halfway completed. Once it’s operational, it will cut travel time from one to two hours, to only 25 minutes.
Meanwhile, Antipolo already saw the completion of the LRT-2 Extension, which added two new train stations, one in Masinag. The station will start running operations this month, according to ABS-CBN News.
In addition, the city anticipates the construction of a new railway system in 2023, as mentioned in this Inquirer report. MRT-4, which connects Quezon City to the Rizal province, will have a station in Tikling, a jump-off point to Antipolo.
Meanwhile, the provinces in Pampanga will benefit from the new passenger terminal building in Clark International Airport and the rising railway system North-South Commuter Railway, which will link Pampanga to Metro Manila, Laguna, and Bulacan.
More Trends in Market Preferences
The latest trend report Lamudi published titled Indicators of Growth: Where to Invest in 2021 likewise aligns with the insights and projections from the central bank’s figures. According to the report, houses sustained interest in the second half of 2020, experiencing a surge of 62 percent from the second half of 2019. In January 2021, it was still the most in-demand real estate type, representing 48 percent of all pageviews for the month and earning the majority of pageviews from each age bracket.
Land, however, posted the highest increase in demand, growing by 63 percent year-on-year in pageviews from the second half of 2019. Most property seekers belonging to the age bracket 65 years old and up preferred this type of property.
Moreover, open areas and multi-purpose spaces were among the top preferences of property seekers in the second half of 2020, confirming the market’s growing demand for more square footage.
The most popular amenity in 2020 was the swimming pool, gaining 17 percent of the pageviews. Combined with gyms, fitness amenities make up 23.09 percent of the views. Meanwhile, open-air spaces, such as balconies and gardens, earned 11 percent of pageviews last year.
Article and Photo originally posted by Lamudi last April 7, 2021.
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