THERE is slower demand in preselling condominiums in Metro Manila, while leisure-oriented developments are picking up in growth areas outside NCR, according to real estate services firm Colliers.
Its third quarter report showed an inventory of 75,300 condo units still available in the metro.
“It will take about 5.8 years to sell all these condominium units, nearly five times compared to the pre-pandemic period from 2017 to 2019, while remaining inventory life ranges between 0.9 and 1.1 years,” Colliers director and head of research Joey Roi Bondoc said in the report.
Of the unsold properties, 27,200 units worth P154.4 billion are ready for occupancy (RFO). These units for the lower to upper middle-income segment, priced between P3.6 million to P12 million apiece, accounted for 57 percent of RFO inventory.
The figures reflected a 61-percent decline year-on-year, with only 9,300 units presold during the period.
Colliers noted real estate developers have been offsetting this drop in demand in the metro by switching their attention to Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), Central Luzon, Central Visayas, Western Visayas, Northern Mindanao, and the Davao Region.
The average demand growth in these areas from 2021 to 2023, Colliers said, is between 30 to 3,000 percent, with take-up or occupied properties surging from 17 to 445 percent.
New horizontal projects, meanwhile, recorded 15 to 138 percent growth, while take-up was 3 to 60 percent, in 2023 compared to 2021.
“Results from our previous surveys show that provinces in these areas are among the most preferred by respondents for their next residential investment,” Bondoc said. “These regions are also among the major recipients of remittances from abroad, covering more than half of the 2.16 million deployed Filipino workers in 2023… this should partly support the stable demand for residential end-use.”
The Bangko Sentral ng Pilipinas (BSP) said provinces accounted for nearly 66 percent of total real estate loans that banks have granted as of the second quarter (Q2).
Colliers pointed out that developers such as Brittany, DMCI Homes, Rockwell Land, Megaworld Corp., Ayala Land, Robinsons Land, Cebu Landmasters, and Damosa Land have also been selling resort or leisure-oriented properties in Cebu, Davao, Bohol, Palawan, Boracay, Cavite, and Batangas.
As of June, these projects, priced between P175,000 to P590,000 per square meter, had take-up rates from 43 to 100 percent.
The projects included leisure-themed integrated communities and condotels. Megaworld Corp., for instance, has launched its beachside township Ilocandia Coastown and beachside golf estate in Lialto, Batangas.
Ayala Land has its mountainside estate Arillo; Brittany’s, Bern Baguio; DMCI Homes, Monticello Crest; and AppleOne Group, JW Marriott Residences Panglao.
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