Condominium prices dropped 10% in second quarter

Prices of condominium projects in Metro Manila’s central business districts softened by 5 percent to 10 percent in the second quarter from the first quarter, as property developers remained firm about pricing and offered discounts and flexible payment terms to attract buyers amid the pandemic.

Leechiu Property Consultants said in a recent study that condominium prices went down by 10 percent in Bay Area/Pasay City to P277,000 per square meter in the second quarter from P308,000 per sqm in the first quarter this year.

A 10-percent decline in residential condominium prices was also monitored in Ortigas/Pasig/Mandaluyong area to P206,000/sqm from P229,000/sqm and in Paranaque City to P137,000/sqm from P152,000/sqm.

Condominium prices in Bonifacio Global City/Taguig, Makati, Quezon City and Alabang/Muntilupa declined 5 percent, LPC said.

Condominium prices in BGC declined to P404,000/sqm in the second quarter of the year from P425,000/sqm in the first quarter, while the average price of residential units in Makati eased to P408,000/sqm from P430,000/sqm.

In Quezon City, condominium units are now being sold at an average price of P253,000/sqm, down from P267,000/sqm a quarter ago, while units in Alabang are being sold at P225,000/sqm, also down from P237,000/sqm.

LPC said Metro Manila’s condominium market remained active despite the current pandemic. Sales declined across all segments except for the upscale condominium units, which price ranges from P7 million to P12 million.

LPC said sales of condominium units catering to the low- and middle-income markets declined by 18 percent and 9 percent, respectively as these segments were affected by OFW displacements and local job losses.

It said that despite the new project launches in the second quarter, condominium developers were still able to sell roughly 26,000 sqm in the first half of the year.

Property developers also focused on offering cash discounts, lower reservation fees and down payments and flexible payments schemes to lure buyers. The tactical discounts resulted in a pick-up in sales in the second quarter.

LPC said most owners of high-end gated villages appeared to be holding to their properties for capital preservation purposes. “Owners who do sell at a discount would likely be in need of immediate cash,” LPC said.