Residential Property Outlook After the First Quarter of 2022

1. Residential Property Outlook After the First Quarter of 2022 www.crownasia.com.ph

2. Before you decide to put your condo for sale or lease, you have to know how the current residential market is doing and the Philippine economy as well. Luckily, Colliers just submitted its most recent data for the first quarter of 2022 for the residential property outlook. Read this article to learn more about real estate markets situation, their recommendations and where you should buy a house or condo.

3. Colliers Q1 Report and Recommendations for Residential Real Estate Colliers, a leading professional services and investment management company, recently published its quarterly market report for residential real estate for the first quarter of this year. In this report, they stated some of the most insightful recommendations and data that will help you see how you should invest in residential real estate.

4. A moderate flow of new supply in the residential market Colliers projects about 10,500 new units by the end of the year, as new projects conclude in Ortigas Center, the Bay Area, and Fort Bonifacio. These combined will account for 85% of the new supply of residential units to answer the residential demand for this year, which should be 20% more than the previous year-on-year. 

5. Vacancy to decline in the second half of the fiscal year for the real estate market Overall vacancy in the Metro Manila residential market dropped this first quarter of 2022 — from 17.9% a quarter ago down to 17.8%. This may not seem like a lot, but this is the first-ever drop in vacancy rate after eleven uninterrupted quarters of increased vacancy rate. A decrease in vacancy rate is great because that means people want to live in an area or building. A low vacancy rate means there are more occupied units, which could be something you can take advantage of if you’re thinking of setting up your condo for sale or buying a condo and having it for rent.

6. Rents and residential property prices will recover Rents in the secondary market (a market where investors buy assets from other investors) declined by 0.2% quarter-on-quarter this first quarter of the year. However, Colliers saw prices beginning to recover, with an increase of 1.2% quarter-on-quarter. They are optimistic that rents and prices will increase by 1.5% and 2.7% respectively by the end of the year. As employees return to traditional and blended work settings, the residential leasing market and residential developers should recover this year. Based on Colliers’ fourth quarter Office Survey last year, 42% said that their companies are requiring 75% to 100% RTO, which can encourage their employees to rent condos, apartments, or co-living facilities that are close to their work area.

7. Landlords should improve amenities and value-added features The survey of the IT and Business Process Association of the Philippines (IBPAP) and the overall market sentiment found that about 90% of employees work better in a hybrid model. Because of this, Colliers recommends developers and rental property owners improve amenities to better suit the work-from-home setup.  Just recently, DMCI introduced a co-working space in their Lumiere Residences during the pandemic to attract more residents. This workspace is fully equipped with high-speed internet, printers, photocopiers, and virtual mailboxes — all exclusive for registered tenants and residents of the condo.

8. Take advantage of rental corrections in major business districts Colliers found a significant decrease in rent prices for 1BR and studio units compared to pre-pandemic rates in Central Business Districts (CBD), including Fort Bonifacio, Ortigas, and Makati. For Colliers, RTO should encourage employees to live in these CBDs, improving the demand for residential leasing in these locations. If you have a ready-for-occupancy (RFO) condo for sale in CBD areas, you might consider putting it up for lease instead and offer attractive terms to generate a continuous flow of profit. The same goes for developers who want to attract more tenants in these areas.

9. Explore areas viable for residential development Colliers encourages developers to explore the outer edges of an area for residential development. This is because they saw strong pre-sales in submarkets last year in fringe areas like Alabang-Las Piñas, Manila North, and Caloocan-Malabon-Navotas-Valenzuela (CAMANAVA). These areas accounted for 82% of affordable-to-mid-income projects last year.  Additionally, Colliers recommends developers to look for developable land in the Bay Area and Makati CBD because demand for condos in these areas increased ever since Metro Manila eased pandemic restrictions down to Alert Level 1.

10. Best Locations to Buy a Condo or House As prices for residential properties are getting more attractive, you should take advantage of this before you run out of opportunities. While most of Colliers’ recommendations are for CBD areas, you might be looking for someplace where you can raise your family in a quiet, comfortable area not too far from the city.

11. Mandaluyong Mandaluyong City is considered to be “Metro Manila’s Heart” as it rests in the center of the metro. It is extremely accessible and practically near everywhere in Metro Manila — be it for commuters and car owners alike. Living here means you have quick access to Rockwell via Rockwell Bridge, Ortigas via Shaw Boulevard, Makati Poblacion via Makati-Mandaluyong Bridge, and other major cities via EDSA.  Mandaluyong is near the top 100 colleges and universities, including Rizal Technological University, Don Bosco Technical College, FEU Makati, Mapua Makati, and Jose Rizal University.

12. Las Piñas Being in the less busy part of the Bay Area, Las Piñas is a great city to live in because it’s accessible to big cities like Pasay and Parañaque but also provinces like Cavite and Laguna. It rests in the middle of Parañaque and Bacoor, Cavite, giving you the choice to live a busy city life or a slow and quiet provincial life with your family.  Additionally, Las Piñas is one of the least polluted areas in Metro Manila, having a good air quality index according to IQAir, a leading organization that provides information about air quality and how to improve it. Because really, no matter how “used to it” you say you are, you can’t deny that breathing light air feels so good.

13. Laguna Laguna is one of the fastest developing provinces in Luzon, with its farthest point only two hours away from Metro Manila. While being near the metro, it is still a province so it has a considerably lower cost of living compared to the big city — all while having the same quality of life (maybe even better) that the metro offers.  The best thing about Laguna is while it is continuously being developed, it preserved its natural surroundings by incorporating greenery into its developments. Best of all, Laguna has a lot of towns or municipalities where you can live, giving you the option to live in a far provincial area or an urbanized city.

14. Cavite If you want to be near the convenience of living in the metro without actually living in it, Cavite is your best bet. It rests just south of Metro Manila, with the nearest municipality being Bacoor, which is just south of Las Piñas and beside Muntinlupa. Not to mention, it is also close to other developed provinces like Laguna and Batangas. Because of its location, Cavite is ideal for starting a family or raising kids, because you get to be close to work in Metro Manila while enjoying the peaceful life away from the city. It’s also relatively cooler in Cavite, as it has a lot of green spaces, especially if you live close to Tagaytay City.

15. Contact us Get in touch with us. Head Office LGF, Building B, Evia Lifestyle Center, DaangHari Road, Almanza Dos, Las Piñas, 1750 Metro Manila Phone No. (+632) 8882 7696 Inquiries (House & Lot) (+639) 56 380 0015 Inquiries (Condominium) (+639) 56 654 8258 To know more visit us now at https://www.crownasia.com.ph/