Over a year into the pandemic, numerous economies from all across the globe, including the Philippines, are on their way towards recovery. However, despite the previous declines, specific sectors remain resilient even in the face of a global pandemic.
Among these markets, the stable demand for upscale condos in the Philippines shows promise as it steadily rises.
When it comes to investing in the real estate market, knowing how to make your first step is essential. Through thorough research and planning, you can find more ways to better understand your local market, allowing you to find the best deal that is well worth every penny you spend. At the same time, you also gain a better understanding of how these investments work so that you can avoid making choices that may be too risky for you.
If you’ve been thinking about buying an upscale condo unit for a place you can call home sweet home, take an in-depth look at the current demand for these properties. This article will serve as your steady guide to making the right choice with your real estate investment.
Why is it important to understand the condo market?
Understanding the upscale condo market is a vital step that you need to take to gauge the true weight of your investment options. The demand aspect, in particular, will let you know the value of the properties and see if you are overpaying or missing out on an opportunity.
Knowing other factors that involve the unit will also help you determine if the property is an ideal place for the lifestyle you want. These considerations include the property history, interest rate, as well as the surrounding environment.
Latest Statistics and Trends
Much like other markets, real estate can experience fluctuations in its trends as the demand and supply continuously change. Here is a glimpse of some of the latest trends and statistics that may help you solidify your investment choice.
- Recovery in residential take-up is expected in 2022 due to a projected rebound in office leasing and other recovery enablers. (Colliers)
Recovery in residential take-up will be anchored by economic rebound, continued construction of key infrastructure projects, competitive mortgage rates, projected pick up in office leasing, and sustained remittances from OFWs. OFW remittances are among the primary drivers of residential demand, with cash remittances from OFWs reaching USD11 billion (PHP 528 billion) from January to April 2021.
An accelerated vaccination program across the Philippines would also aid in buoying residential demand as it can encourage more businesses to reopen and expand. This should contribute to a recovery of investor sentiment, as the government aims to achieve herd immunity by Q1 2022—providing a much-needed boost to the country’s residential sector.
- There continues to be a steady demand for mid-income to upscale projects, which contributed 82% of launches and 95% of take-up in H1 2021. (Colliers)
This shows a steady demand for upscale residential properties in the country despite the slow shift in pricing. This may also be due to the higher priority placed on discerning the preferences of the investors as a means of pushing them to keep moving forward.
Demand is expected to be continuously driven by these price segments as buyers look for properties within integrated communities in major business districts.
- Investors account for 35% of luxury condo demand, followed by professionals at 30%, OFWs at 20%, and foreigners at 15%. (BusinessWorld)
Investors are more likely to look for innovative amenities and facilities, access to master-planned communities, open spaces, health facilities and services, new office buildings, and top-notch concierge services.
Furthermore, projects marketed to upscale markets typically have unique architectural designs, over-the-top attention to detail, and impressive finishes. They are often located close to a city’s center, delivering ready access to the arts, culture, and entertainment.
These features ensure that these higher-priced units will continue to stand out in Metro Manila and sustain market demand.
- In Q2 2021, projects within the mid-income to upscale price segments accounted for 95% of the total take-up. (Colliers)
Upscale condo properties are growing to be a popular investment choice for middle-class investors looking to build a home for their families.
Developers are expected to continue launching more projects from these price segments, with more aggressive completions of residential units and ramped-up launches of new projects across Metro Manila.
- Upscale and luxury pre-selling projects in Metro Manila targeted for completion from 2021 to 2022 have already sold an estimated 91% of their inventory in Q3 of 2020. (Inquirer)
The demand for upscale condominiums remains attractive among foreign and domestic investors, as it offers them numerous opportunities and benefits compared to other properties. Apart from the unit itself and its investment potential, people respond better to the convenience of a condo lifestyle, such as having complete amenities and quick access to essential services.
- The average take-up of luxury joint venture (JV) projects between local and foreign firms reached 85% as of the end of 2020. (Colliers)
Joint venture projects offer upscale amenities and strategic locations, as well as impressive architectural designs, precise construction, and high engineering standards that encourage investors to acquire such properties.
The combination of local knowledge with foreign companies’ experience also results in an innovative approach to developing the project, benefiting all stakeholders.
Among these properties, The Seasons Residences continues to grow in popularity. This is a joint venture between Federal Land and trusted names in Japan, Nomura Real Estate Development Co., Ltd., and Isetan Mitsukoshi Holdings Ltd.
Own a piece of Japan at BGC
Inspired by the four seasons of Japan, The Seasons Residences is the country’s first residential project with a distinct Japanese concept. This signature development marries the Filipino sense of community with the Japanese tradition of excellence, innovation, and artistry.
The Seasons Residences offers Japanese design efficiency and technology—from ingenious storage solutions to safety and security devices like earthquake vibration control system and relaxing amenities such as a swimming pool, karaoke, and wellness spa.
At the podium of The Seasons Residences is the country’s first MITSUKOSHI.
MITSUKOSHI brings to the country premium commercial spaces that showcase Japanese design elements in a casual but elegant setting. It will feature a well-curated selection of Japanese beauty brands, as well as its signature depachika or basement-level food hall.
Closing the Deal
Despite the economic toll that the world has faced due to the COVID-19 pandemic, the upscale condo market remains resilient. Thanks to its steadily rising demand, now is an excellent time to make the right investment choice to attain your dream home. But this does not mean that you should rush yourself into the decision.
When buying upscale condo units, it is best to take your time and research well to ensure you’re looking at a condo that best fits your needs. Actively seek out options and compare the pros and cons of choices available to you.
Make sure to look into trusted developers and learn all the details of the project. A credible developer is capable of following through with whatever they promise and should have a long history of well-built projects.
The Seasons Residences is a new upscale development located at the heart of Bonifacio Global City (BGC), featuring state-of-the-art amenities while combining Japanese design, technology, and innovation in its architecture. Reach out to The Seasons Residences team and check out their upscale condo units today.
