The Philippines condominium sales market is expected to remain upbeat as demand for residential condominiums is still healthy. According to real estate firm CBRE in its latest MarketView Report, demand emanates from the increasing expatriate community in the country and overseas Filipinos working abroad.
For the first nine months of 2015, major developers attribute more than 20 percent of their residential sales to overseas Filipinos. Reservation sales by major property firm was likewise reported to be strong.
A myriad of factors have influenced the growth in the residential scene, but it is the expansion of the business process outsourcing (BPO) industry that provided most of the stimuli. The availability of BPO jobs in major commercial districts, particularly in Metro Manila, spurred the influx of professionals to the city and raised the demand for housing.
The trend of urban living encouraged developers to create pocket developments and townships. Property firms introduced new components such as retail, leisure, residential, and offices into a single location.
According to CBRE, developers are also bullish on luxury condominiums as expatriates move from lessees to unit owners. Metro Manila continues to be the top investment destination for luxury condominium buyers. Bonifacio Global City (BGC) and Makati are considered as top prime locations given their proximity to major commercial districts.
The high-end condominiums feature few but spacious units per floor and high-quality amenities. Rentals for three-bed units in BGC are at PhP 170,000 to PhP 240,000 per month, and in Rockwell at between PhP 160,000 and PhP 200,000 per month. Meanwhile, Makati three-bedders for Premium Grade condominiums command between PhP 180,000 and PhP 280,000 per month.
Selling prices for new condominium units range between PhP 184,000 and PhP 309,000 for Makati CBD and above PhP 185,000 for BGC. Luxury apartments are also considered a global tool of investment for foreigners that seek higher return for their funds.
The Philippines market is relatively cheaper compared to other locations in Asia, which benefited the demand for residential condominiums.
According to government data, a total of 3.78 million sqm of residential units are currently being constructed, which is comprised of 22,562 units from single house, apartment, duplex/quadruplex, residential condominium and other types of residential buildings.
Construction of residential condominiums, which amounts to a total of PhP 18.2 billion based on the latest government report, takes the top spot in terms of contribution to total construction value.
