Metro Manila’s condominium sector continues to show resilience despite shifting trends and evolving buyer preferences.
Based on latest data from real estate consultancy firm Leechiu Property Consultants. residential condominium sales rose 6.5 percent in the second quarter of 2024.
This growth coincided with a 30-percent increase in new project launches, including six fresh additions to the preselling inventory, highlighting renewed investor confidence in the National Capital Region’s (NCR) urban property market.
However, residential real estate loans (RRELs) granted for new housing units in residential projects in Metro Manila declined 31 percent in the first quarter of the year.
Loans for single detached houses were the highest this quarter at 43 percent, showing only minimal change from the previous quarter, while loans for condominium units declined to 34.7 percent from 42.6 percent in fourth quarter of 2023.
RRELs for residential projects outside Metro Manila experienced a modest 2-percent increase over the same period. This divergence underscores a broader trend of decentralization, as homebuyers and developers alike explore opportunities beyond the bustling confines of Metro Manila.
Reverse Migration
An intriguing aspect of this trend is the reverse migration, as indicated by data from the Philippine Statistics Authority (PSA). Increasingly, residents are seeking housing solutions outside Metro Manila, drawn by more affordable options offered by township developments.
These projects promise city-like conveniences without the perennial challenges of traffic congestion, making provincial areas increasingly attractive for property investment and residential settlement.
LPC director Roy Golez said property developers are already positioning their projects in areas where upcoming infrastructure projects are located such as the Cavite-Laguna Expressway and Cavite–Tagaytay–Batangas Expressway south of Metro Manila.
Golez said developers are also land banking in Bulacan where the future international airport is being built as well as the North-South commuter railway from Clark to Laguna.
“Looking ahead, there is high potential demand for township developments north of Metro Manila. With the bulk of demand shifting outside Metro Manila, developers will adopt a more cautious approach to launching new condominium developments in the capital region while reducing current inventory,” Golez said.
Allure of Metro Manila
Looking ahead, LPC said the future of Metro Manila’s condominium market remains intertwined with economic dynamics such as sustained job creation, particularly in the IT-BPM sector and robust remittances from overseas Filipino workers (OFWs).
However, the sector’s trajectory hinges on embracing geographic expansion and adapting to changing buyer demands.
The much-anticipated interest rate cut by the Bangko Sentral ng Pilipinas is also expected to boost the residential market.
“We are excited about the rate cuts, which we are anticipating for much too long. That will have positive effect over the near term and long term for the all the sectors of the property market,” LPC director Tam Angel said.
