THE Subdivision and Housing Developers Association, Inc. (SHDA) reported that the housing sector’s performance has improved over the last couple of years and the positive outlook will continue amid the ensuing Covid-19 pandemic.
According to SHDA National President May P. Rodriguez, the growth in the residential segment of the real estate industry declined in the initial period of the health crisis but then slowly recovered.
“In 2020, all of the private developers [experienced a] downward trend. So sales were not as good [as before the health crisis] and collections were really a challenge,” she said during the SHDA’s first online Kapihan with the Department of Human Settlements and Urban Developments (DHSUD), entitled “DHSUD & Partner-Developers: Paving the Way Forward for Vibrant Housing Industry,” last February 16.
Loss of jobs
She attributed this to loss of jobs, forcing some of their clients to skip their monthly amortizations. This also forced potential buyers to forgo the opportunity to purchase a house as there was also a shift in their priorities.
“But fortunately towards the end of 2020 and in 2021, I think, a lot of developers would say that they are able to recover but not yet to the level of the pre-pandemic. So I think we can say maybe developers in 2021 did about 50 percent to 75 percent of what they were doing before the pandemic. And the outlook is it will continue to improve,” Rodriguez noted.
Notwithstanding the impact of the coronavirus on the real estate industry, she emphasized that the many are still interested to invest in the housing sector under the “new normal.”
Based on their consultations with their buyers, she bared that most of them found that they need to own a house due to many factors.
Work from home
One of the many reasons why they want to own a home is that hey have to work from home or just stay indoors during lockdown periods to avoid contracting the deadly virus.
To observe health protocols like maintaining physical distancing, some have to acquire their own place, especially those who are sharing a small space with their families.
Others opt to have their own place near their place of work so that they will not have to travel far.
Leasing category
The house for sale segment is not the only segment that has performed well. Rodriguez pointed out that the leasing category is also doing equally well.
“I think we can say that rental properties are also thriving,” she said. “Currently, we know there are a lot of rental properties out there, and those who are working are the ones who are renting these so that they don’t need to commute, they’re near their place of work.”
This holds true also to students who are coming from the provinces and would like to study in Metro Manila.
“I think the dormitories that we have in the schools are not enough. So their option is to really rent,” said the SHDA president. “There’s really a market for the rental housing on the side of private sector.”
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