Property consultancy firm Colliers International Philippines said Tuesday it expects the completion of 7,270 new vertical residential units in 2021, up 21 percent from 6,008 units in 2020.
Colliers senior manager for research Joey Bondoc said around 76 percent of the new supply would come from the Bay Area, Fort Bonifacio, Alabang, Ortigas Center and Makati City.
“In our view, demand in the residential sector in 2021 will likely be driven by mid-income to luxury projects. As of third quarter 2020, Colliers Philippines data showed that projects in these segments due to be completed from 2021 to 2022 have sold an estimated 86 percent of their inventory,” he said.
“To tap pent-up demand, developers should continue to offer flexible payment terms and adopt property technology platforms. These include virtual reality tours and automated communication platforms for tenants and property management providers,” said Bondoc.
Colliers expects vacancy rate in the secondary market or mid-sized market to decline to 13.5 percent by the end of 2021 from 15.3 percent in 2020.