Condo trends, insights for 2024

RLC Residence’s Woodsville Crest.

Buying a property in the right location is crucial.

This is what Joey Bondoc, research director at Collier International Philippines, highlighted at the recent property preview event with developer RLC Residences.

COLLIER International Philippines’ research director Joey Bondoc.

Bondoc added that respondents of a Colliers study feel the same way, as 62 percent prioritize proximity to offices, malls and other amenities when buying a condo unit in Metro Manila.

This trend is particularly evident in the success of RLC Residences’ SYNC N-Tower located in Pasig, which boasts 71 percent of units sold. Accessible to Makati, Fort Bonifacio, Eastwood City and Ortigas Center, SYNC has resonated with urban dwellers seeking a strategically located residence that complements their lifestyle.

Woodsville Crest’s proximity to the airport makes it an ideal rental unit for expats and a smart investment opportunity for Filipinos. Woodsville Crest is RLC Residences’ nature-inspired development located in Merville, Parañaque, which is also accessible to CBDs like Makati and BGC.

Another Colliers study reveals that 45 percent of respondents plan to use their upcoming property purchase for end-use, while 55 percent intend to use it for investment. The return of expatriates is also a significant factor contributing to the demand for investment properties.

Bondoc advised putting a prime value on developers’ track records when making investment decisions. A strong track record instills confidence in stakeholders looking for reliable and reputable developers to invest their hard-earned money.

Sierra Valley Gardens, one of RLC Residences’ award-winning pre-selling developments located in Cainta, Rizal, has seen a remarkable appreciation rate of 47 percent since its launch date in 2020. It has received multiple accolades locally and abroad for its features such as smart home-ready units, strategic location, and amenities for various pursuits.

Sustainability is also increasingly becoming a priority for condominium buyers. 40 percent of surveyed consider sustainable features an essential factor when purchasing. One project that reflects this need is Woodsville Crest, which features vast green spaces and nature-inspired amenities. The development is set to adapt other environment-friendly features, such as a rainwater harvesting system for non-potable requirements of the development, bike parking areas, and e-vehicle charging stations.

Factors supporting residential demand

Fortunately for budding investors, the Philippine economy is on a growth trajectory, creating a favorable environment for the real estate sector. Data from the Philippine Statistics Authority showed that the Philippine economy expanded by 5.6 percent in 2023, and the 2024 growth forecast of multilateral lending firms and credit rating agencies is between 5.8 percent and 7.5 percent. This development is driven by increased remittances from overseas Filipino workers and heightened infrastructure spending.

Regional economies are also experiencing improvement, with GDP growth per region ranging from 5.9 percent to 9.3 percent in 2022. Fueled by remittances from countries such as the United States, Singapore, and Saudi Arabia, household spending has contributed to this growth. Inflation has also slowed, and the average mortgage rate has remained stable. Unemployment has also decreased, indicating a strengthening labor market.

Infrastructure spending is also a priority for the Philippine government, with allotments increasing significantly from P406.59 billion in 2015 to P1.3 trillion in 2023. Projects such as the Estrella-Pantaleon Bridge, MRT-3 rehabilitation, NLEX-SLEX Connector, Pasig River Expressway and the Metro Manila Subway are expected to enhance further connectivity within various cities across multiple regions, which would help and drive property appreciation in years to come.

Looking ahead, the residential demand is expected to be supported by the rise in OFW remittances, the return of expatriates, and the development of more integrated communities. Overall, the Philippine real estate market remains resilient, with solid fundamentals and a promising outlook for the future.