A condo market rebound is on the cards with Colliers International Philippines believing that pent up demand will drive this recovery. With the domestic economy showing signs of picking back up, the consultancy sees the situation improving next year.
“Colliers expects recovery in residential take up in 2022 on the back of a rebound in office leasing; macroeconomic recovery; sustained remittances from Filipinos working abroad; competitive mortgage rates; and a pickup in business and consumer sentiment. An accelerated vaccination program across the Philippines should support these factors and encourage more businesses to reopen and expand,” Joey Bondoc, Colliers International Philippines Associate Director, Research, said. “In our view, the projected recovery in residential completion in 2021 partly indicates a rebound of the secondary residential market in Metro Manila.”
According to Colliers, around 2,200 units were delivered in Metro Manila during the second quarter of this year. The consultancy estimates that 10,061 units will come online in 2021, a 198 percent increase from the 3,370 units completed in 2020.
“Colliers encourages developers to start lining up projects in anticipation of a market rebound in 2022. Colliers is already seeing more aggressive completions of residential units across Metro Manila, and we project a ramped-up launch of new projects beyond 2021,” Bondoc stated. “Developers should be proactive in lining up marketing efforts to capture pent up demand beyond 2021.”
Roughly 7,500 units are expected to be completed annually between 2021 and 2025 with about 73 percent likely to be located in the Bay Area and Fort Bonifacio. However, it is important for homebuilders to understand new trends, especially when it comes to the amenities buyers now require.
“In order to increase competitiveness in the market and make properties more attractive to buyers, some developers have been incorporating features such as built-in fiber optic internet connection, videoconferencing and co-working areas, designated smart storage facilities for contactless parcel deliveries, and open recreational spaces which are suitable for gardening and wellness activities,” Bondoc reported. “In our view, developers should continue upgrading amenities to satisfy the discerning preferences of buyers.”
