THE Digital Property Seeker Series of 2019 consists of data collected from the Lamudi platform.
They comprise of five categories, namely:
- House
- Condo
- Foreclosed properties
- Land
- Apartment
Each category is made up of four sections: Most Searched Location, Age, Gender and Area of Residence of property seekers, with each containing three data indicators. These are Sessions, Pageviews and Leads. Sessions is a group of user interactions with your web site that takes place within a given time frame. A click is equivalent to one session, which lasts for 30 minutes. Time in excess of 30 minutes is considered as a new session. Pageviews are the recorded pages that were visited while Leads are the inquiries made.
Based on the data collected from January to December 2018, Quezon City consistently made it to the top 5 across all categories. In fact, it was ranked the highest with the exception of the Condo category. It did, however, place second to Makati City for the Most Searched Location and Area of Residence categories. Quezon City garnered the most interest.
When it came to Age group, it was the 25- to 34-year-old bracket that held the top spot regardless of category. The 35 to 44 Age group would have been the second placer in all of the categories with the exception of one; it came in third after the 18- to 24-year-old bracket in the Apartment category.
The Gender section was unanimous with Female property seekers, exceeding their Male counterparts. There was a commanding lead in each category except for Land. They came within a few percentage points of each other for the three indicators. Female property seekers, however, still led in that category.
Introduction
There were many notable highlights and trends that defined the real-estate industry in 2018, most of which focused on Metro Manila. According to JLL, “The Metro Manila property market is seen to maintain an upward trajectory despite the recent headwinds in the Philippine economy. The real-estate market remains to be resilient, exhibited by the modest performance on the demand side, and the Philippines maintain positive investment environment from credit rating agencies’ view.”
Other parts of the country were also highly involved in the real-estate industry’s robust growth. Several residential and infrastructure projects were being built in different cities and based on our recent study about the Emerging Cities 2018: Condo Market, the cities like Iloilo City, Clark (Pampanga) and Davao City had one of the top leverages we have seen last 2018. These are poised to play their own significant roles in the year ahead.
Similarly, with the present administration’s “Build, Build, Build” program gaining momentum, various real-estate developers are already formulating their strategies around it. The areas where the 75 flagship infrastructure projects of the BBB will be constructed are expected to bring about significant economic growth within their respective regions, encouraging both the local government and private businesses to invest in such areas. The BBB is projected to cost above P8 trillion and is envisioned to create more jobs that would eventually result in inclusive growth for the country.
The real-estate office condo segment also figured prominently in 2018. This was boosted by the Philippine Offshore Gaming Operators and business-process outsourcings. Colliers reported that Pogos represented 25 percent of office take-up by the third quarter of 2018. BPOs, which can be further divided into knowledge-process outsourcing (KPO) and voice, took up 26 and 16 percent respectively. Together with the non-BPO traditional office requirements, these companies kept vacancy rates below 5 percent within such period.
Rental rates rose by 13 to 18 percent in Metro Manila on the strength of high demand. Property prices continue to increase as well and there are more office spaces in the pipeline for 2019.
This bodes well for the residential real-estate segment which would be crucial in providing good housing options in these locations. Lamudi’s search data studied the interest of property seekers in residential properties contained in its platform, providing adequate evidence on which locations are garnering the most interest and where it’s coming from.
House
The Most Searched Location for the House category was the country’s largest city. Quezon City outperformed other Metro Manila areas for all three indicators. It had more than double Sessions (visits) at 20.79 percent than second ranking Parañaque City at 10.03 percent. Pageviews comprised 17.68 percent and 9.22 percent, respectively, for the top 2 cities. It had slightly different ratios when it came to Leads performing 16.78 percent against Parañaque’s 10.40 percent. These indicators clearly show that Quezon City is the most popular location for Houses among property seekers.
Rounding out the top 5 are Las Piñas, Cebu and Pasig. With the exception of Cebu, these locations provide more affordable options for those working within the immediate vicinity of Metro Manila’s main CBD’s. Those choosing to set up their residence in these areas could easily access the vastly improved public transportation network promised by the BBB.
Cebu also stands to benefit from the BBB’s infrastructure projects. It has three major bridges that will connect it to Bohol and Negros. This will be complemented by an expressway, as well as a bus rapid transit system. The indicators show that it is slightly ahead of Pasig in terms of Pageviews. Conversely, Pasig narrowly beats Cebu when it comes to Sessions and Leads. They are less than 1 percent apart in all three instances.
Property seekers from the 25- to 34-year-old age bracket have expressed the highest interest. All indicators have them surpassing the 35-percent mark. Females showed a convincing majority over their male counterparts, which was collectively at 60 percent region.
According to The Outlook 2018: Lamudi’s Comprehensive Look in the Philippine Real Estate, millennials are still the most curious, accounting for the biggest chunk of our page visit. This market grew up in the age of digital devices and Internet access that make searching and buying properties more convenient for them.
When it came to Area of Residence, it was again Quezon City on top. Parañaque and Las Piñas which previously occupied second and third place for the Most Searched Location were, however, replaced. Data showed that users from Makati and Manila respectively took their spots. Cebu and Pasig were similarly placed in the fourth and fifth spots.
Condo
The top 5 dominate the Most Searched Location for this category. They represent more than 60 percent of searches among all the possible cities to be selected. Beyond that, the aggregate of Other cities represented a mere 33.56 percent (Sessions), 35.91 percent (Pageviews) and 33.90 percent (Leads).
It is no surprise that Makati occupies the No.1 spot. The city is home to the country’s premier business district. Office workers could simply walk to their workplace from their condo.
What is revealing about this data is the placement of Quezon City at No.2. The increased conveniences of public transport has made it easier to come from this location with the Metro Rail Transit and Light Rail Transit lines intersecting in Cubao, a main junction.
Coming in third is Taguig, which was expected to rank higher, though nevertheless is among the top 3 for Condos. The rapid developments in the BGC area are one of the reasons why condo developments are high in demand. Multiple world-class corporations are also located in this area.
It didn’t come as a surprise that Metro Manila cities occupied the top spots among Most Searched Locations as cities in the Metro generally cater to the demand for both luxury and midrange condos. According to the 2018 Market Snapshot by JLL, “Conditions in the residential condominium market remained solid with local and foreign high net-worth individuals leading the demand for the luxury price segment while mid-income earners and OF families taking up units in the midrange segment.”
The 25- to 34-year-old Age group comprised the highest percentage of searches. They tallied 44.34 percent (Sessions), 45.43 percent (Pageviews) and 50.66 percent (Leads). The Leads generated are an especially strong indicator of this Age group wanting to experience condo living.
Females, likewise, outnumbered males in the Gender category. The males only had 37.14 percent (Sessions), 40.61 percent (Pageviews) and 34.79 percent (Leads).
In the Area of Residence category, property seekers came mostly from Makati. They totalled 24.62 percent (Sessions), 23.59 percent (Pageviews) and 30.28 percent (Leads). A close second place, however, were users from Quezon City. They totalled 24.36 percent (Sessions), 20.50 percent (Pageviews) and 21.81 percent (Leads). It is possible that those presently staying in condos in Makati or Quezon City are looking to upgrade. The two cities are, likewise, in the top 2 for the Most Searched Locations in this category.
Foreclosed property
The Most Searched Locations are more evenly distributed, with Other cities constituting the bulk of the inquiries at 76.83 percent (Sessions), 80.34 percent (Pageviews) and 79.35 percent (Leads). Quezon City, however, is once again at the top. It is joined by three cities from Cavite province: Dasmariñas (second place), Bacoor (third place) and Imus (fifth place). Las Piñas at fourth place completes the top 5.
This indicates that interest in Foreclosed properties is not concentrated in just a few cities which shows that investors are considering locations in different parts of the country.
The top Age group is the 25- to 34-year-old bracket. It comprised 37.54 percent (Sessions), 37.07 percent (Pageviews) and 44.74 percent (Leads) of the total. There were more investors willing to invest in Foreclosed properties than any Age group. The next was the 35- to 44-year-old bracket, making up less than half at 19.93 percent in Leads.
Females, once again, represented close to two thirds of searches when it came to Gender. Their numbers totalled 61.66 percent (Sessions), 59.83 percent (Pageviews) and 65.36 percent (Leads) respectively.
Most potential investors definitively come from Quezon City. It represents a stronger showing of 22.49 percent (Sessions), 18.43 percent (Pageviews) and 23.49 percent (Leads). Compared to its Most Searched Location output, Quezon City’s Area of Residence results conclusively shows where most property seekers in foreclosed properties come from. It does not however top the Others cities portion.
Users of the platform coming from various parts of the Philippines posted the highest ranking for the Area of Residence portion. It represented 47.19 percent (Sessions), 56.87 percent (Pageviews) and 43.81 percent (Leads) of the tally.
Lot
Similar to the Foreclosed Properties category, the Others cities section provided convincing numbers. It represented 79.11 percent (Sessions), 81.88 percent (Pageviews) and 80.16 percent (Leads) of the total. Quezon City, however, still held the top spot. It is joined by Tagaytay, Antipolo, Santa Rosa, Laguna, and Davao.
The five cities mentioned only make up about 20 percent of the total. With the exception of Quezon City, it appears property seekers are looking to invest in land outside of Metro Manila. While it is not conclusive, these searches could be in response to the government’s initiatives to decongest Metro Manila.
Those coming from the 24- to 35-year-old bracket remain the highest Age group out of the six. They generated 29.33 percent (Sessions), 31.09 percent (Pageviews) and 33.98 percent (Leads).
It was more evenly balanced when it came to Gender, with Males trailing Females by a smaller margin. They comprised 47.60 percent (Sessions), 48.16 percent (Pageviews) and 43.27 percent (Leads) of the total.
Lot property seekers coming from Quezon City continued to place at the top of the Area of Residence section, representing 22.14 percent (Sessions), 18.67 percent (Pageviews) and 23.69 percent (Leads) of the tally. In addition to Quezon City, most of the potential investors in the top 5 came from Metro Manila. These are the cities of Makati, Manila and Pasig. Users coming from Cebu however registered at fourth place.
Cebu is second only to Metro Manila in terms of population. Property seekers collectively coming from the country’s most densely populated areas top this category.
Apartment
The Most Searched Location under the Apartment category is Quezon City. It garnered 24.71 percent (Sessions), 21.88 percent (Pageviews) and 19.90 percent (Leads) among the cities reviewed. This is more than 10 percent the amount of the second placer, Makati City. The rest of the top 5 are Manila (third), Cebu (fourth) and Pasig (fifth). It generally implies that Apartment living in metropolitan areas would naturally rank high in this category.
Apartments are a less costly alternative to houses and in some cases, condos. It is a logical choice for those who are living and working in major metropolitan areas.
When it came to Age, the 25- to 34-year-old bracket convincingly held the top position. It constituted about half of the total property seekers. At 47.41 percent (Sessions), 48.78 percent (Pageviews) and 51.41 percent (Leads), it overtakes the next Age group by a wide margin. Female Apartment seekers by far outnumbered Males in the Gender section. They represented 70.58 percent (Sessions), 67.86 percent (Pageviews) and 69.47 percent (Leads). It was only in the Apartment category in which Females commanded the biggest lead.
For Area of Residence, Quezon City once again held the No.1 spot. It tallied close to a third of the numbers at 29.89 percent (Sessions), 28.13 percent (Pageviews) and 30.08 percent (Leads). This is followed by Makati (second), Manila (third), Cebu (fourth) and Pasig (fifth).
However, Quezon City did not hold a commanding lead as it did over Makati in the Most Searched Location section.
OUTRO
With more of the infrastructure projects of the BBB program materializing, expect more rising property developments would be influenced by it. Metro Manila will continue to have its fair share of high-profile projects though there will likely be increased developments in the provinces, especially in Cebu, Davao and Iloilo.
However, it will not be smooth sailing the whole way. Colliers has identified certain challenges ahead for the industry, including rising interest rates and inflation, private construction delays, uncertainty with the second package of the Comprehensive Tax Reform Program, and right-of-way issues on infrastructure projects.
But with solid market performance in 2018 and growth in the property sector’s various segments and emerging hot spots, in addition to positive trends such as green building and sustainability, property investors and developers alike can look forward to a favorable year ahead.