The bullish economic outlook is contributing to the upswing of Metro Manila’s residential property, specifically a surge in condominium developments. Furthermore, property analysts said investors are still yearning to own a piece of property in the bustling capital, as businesses regain their footing and the job market continues to expand.
The result saw the continued construction of condominium projects in the metropolis as Filipino individuals and families realize the benefit from the mobility, convenience, and accessibility these offer. This is validated by the numerous project turnovers in the second half of 2023, which likewise sends a good signal to prospective property investors.
Property juggernaut Vista Residences has responded to the market demand as it has consistently provided stylish condominium homes tailored to the needs of end users such as ambitious young professionals and modern families. Aspiring condo dwellers and investors will likewise find Vista condo projects near the business and commercial districts of Makati, Taguig, Mandaluyong, Manila, Pasig, and Quezon City.
Eda Tambologan, Division Head of Vista Residences, acknowledges the urgent demand for more high-quality condominiums in the big cities. “With condo investments posting positive growth, Vista Residences will continue to deliver top-notch projects to the Metro-Manila market,” she says. “Our goal is to offer Filipino investors and home seekers noteworthy options where they can thrive personally and professionally.”
Sharing the optimism
Property management company Colliers Philippines concurs with the optimism of Vista Residences as the condominium market is currently attracting a lot of investors in Metro Manila because of its capital appreciation.
To sustain the build up. Joey Roi Bondoc, Colliers Philippines research director, urged developers to be more aggressive in highlighting the residential segment’s viability as a potential hedge against inflation. Moreover, he said developers of vertical units that are located in integrated communities and near public infrastructure projects also have great capital appreciation potential to entice investors when acquiring a condominium unit.
Over the past six months, Bondoc observed that demand for residential leasing has picked up partly driven by demand from foreign employees of outsourcing firms, consular offices, and multilateral lending firms based in Makati commercial business district (CBD), Ortigas Center, and Fort Bonifacio. He also emphasized these business hubs have also been benefiting from improving office space take-up. Further, Bondoc pointed out that declining residential vacancies have positively influenced rents and prices. In the pre-selling market, launches and take-up picked up in the first half of 2023.
Colliers believes that developers should be guided by the interest rate environment and future modifications should have an impact on the promos and payment schemes that they will implement for the remainder of the year. Given the compressing yields in the market, property firms should also continue highlighting the capital appreciation potential of condominium units especially those located in master-planned communities.
Developers should also zero in on the residential units’ viability as a hedge against inflation. In our view, developers should also explore the viability of launching more horizontal projects outside Metro Manila.
For sure, Bondoc said developers are banking on the government’s infrastructure push, aggressively and strategically acquiring land near the government’s big-ticket public projects. “Moving forward, this should result in the development of more horizontal projects including resort-oriented master-planned communities.”