Demand for residential condominium is still positive despite the lacklustre performance of overseas Filipino (OF) remittances, according to CBRE Philippines in its latest research report covering the first three months of this year.
Recorded growth of remittances is still positive but at a slower rate, down to 3.4 percent in Q1 2016 from 4.9 percent at the same time last year. The slowing of remittances is mainly due to the state of the global economy. This is mirrored by the weakening of economies located in the Middle East, due to the drop in oil prices.
CBRE reported that there has still been growth in demand for residential properties, and also a high number of take-ups in Q1.
The expansion of several industries, particularly Business Process Outsourcing (BPO), continued to drive demand for condominiums around Metro Manila, particularly in Makati and Bonifacio Global City (BGC) (pictured) central business districts, where more people are expected to join the labour force.
Most developers still consider BGC and Makati’s central business district to be the top destination when it comes to luxury condominium investments, given their proximity to major commercial areas such as Greenbelt Park, Glorietta, Uptown Mall, Venice Piazza, Bonifacio High Street, etc. The increase in population of the BPO this year will hopefully drive the demand in the residential market.
At the start of 2016, strong demand and prevailing prices for residential properties are justified by sound macroeconomic fundamentals, according to CBRE, making luxury and high-end condominiums display a bullish movement when it comes to take-up rates from the previous quarter.
Residential properties in Makati and Taguig stand-out from the rest of CBDs, with an average take-up rate per month of 22.12 units for Makati and 15.44 units for Taguig, showing the increase in interest from investors. This outcome is mainly caused by the sales in Air Residences in Makati and Madison Square Park in Taguig.
In Q1 2016 selling prices for a two-bedroom luxury condominiums in Makati was above PhP 180,000 per sqm, while in BGC it was more than PhP 236,000 per sqm. High-end condominiums, on the other hand, are small in quantity but feature large floor area units per storey and high-end facilities.
Rental rates are steady for three-bedroom ‘Premium Grade’ condominiums in Makati, and range from PhP 180,000 to PhP 280,000, while three-bedroom units in BGC range from PhP 170,000 to PhP 240,000.
For new condominium units, selling price starts from PhP 185,000 for Makati CBD and BGC respectively.
Reported residential property which is open for occupancy this year is the Sandstone in Portico, developed by Alveo Land, with 149 units still available out of 398 units floated in total. One-bedroom units are approximately 57 sqm, two-bedroom units are 110 sqm, three-bedroom units are 110 sqm, and Courtyard Villas and Penthouse units are 209 sqm.
Other residential properties which are soon to open for sales are The Sequoia at Two Serendra, One Maridien, Two Maridien, Park Triangle Residences, Verve Residences One and Verve Residences Two.
