The condo market in Metro Manila is expected to begin its recovery in the second half, according to Colliers International Philippines. An improving business outlook along with the return of foreign employees will provide an enormous boost to the sector in the final half of 2022.
“Optimism in the market abounds especially with more economic sectors opening up. We now see more businesses encouraging their employees to return on site. This, coupled with the return of more foreign employees should have a positive impact on residential leasing. Joey Roi Bondoc, Colliers Associate Director and Head of Research, explained. “Hence, we are projecting a gradual recovery in rents and prices which should extend beyond 2022. Business and consumer confidence should spillover to the pre-selling market. Hence, we project a recovery which should start by the second half of 2022.”
Colliers noted that a gradual increase in prices across the condo market in Metro Manila was seen in the first quarter, but this will likely improve as the recovery moves forward. The consultancy predicts prices to rise by 2.7 percent by the end of 2022 as investor sentiment improves. Additionally, pre-selling demand will pick up slightly, although it’s going to be below pre-pandemic levels.
Related: Land prices in Metro Manila on the move
Will we see a property market boom in 2022?
Claro Cordero Jr., Director and Head of Research, Consulting and Advisory Services Cushman and Wakefield explained to the BusinessMirror that a property market boom in 2022 will be supported by the country’s improving vaccination rate with this helping the economic reopening.
He added that the residential segment will lead the boom as stable household purchasing power, a labor market recovery, the continuous flow of overseas Filipino worker (OFW) remittances and the availability of credit to consumers should stimulate more interest and sales.
