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Written by: Rita Magallona

For the first time in ten years, Metro Manila’s condominium market is experiencing a downturn. According to the global real estate services firm Colliers International Inc., prices will drop by 15% from 2019. However, the firm also expects the market to recover slightly in 2021.

If you’ve been planning to buy a condo, the current property price drop might look like a good sign. Or is it?

End of Decade-Long Property Boom

This is a significant decline following an unprecedented property boom driven by low interest rates, the outsourcing sector’s expansion, and foreign worker remittances. The last time condominium prices declined was in 2009, when it went down 1.5%.

Less Condo Units Due to the Enhanced Community Quarantine

Colliers also reduced their expected number of completed condominium units to 11,000 from their previous estimate of 14,000 for this year. They attribute this lower estimate to the stoppage of construction work because of the implementation of the enhanced community quarantine (ECQ) in Luzon.

But while the work stoppage led to a slower completion rate in 2020, they expect it to go back up in 2021, as construction will resume and new demand comes in.

Rise in Rental Property Vacancy

The property services firm also forecasts a 5.5% decline in residential property rents while vacancy will rise 15% from 2019’s 11%. However, they do see the market improving in the third quarter leading up to a recovery in demand and supply by 2021.

A Golden Opportunity to Buy a Condominium Unit

Given these forecasts, Joey Bondoc, Senior Research Manager at Colliers International Philippines encourages buyers to seize the opportunity of acquiring a condo now at more attractive prices, especially for mid-income condominium units.

On the other hand, Bondoc, in the same report, encourages developers to “highlight high-quality property management with a focus on sanitation and emergency preparedness, implement creative lease terms for Ready-for-Occupancy (RFO) units, and offer flexible payment terms to attract buyers, especially as pent-up demand starts to be released in 2021.”

These estimates and forecasts are based on the assumption that the Philippine economy will contract this year and that the coronavirus will be contained by the third quarter.

Are you feeling optimistic about the post-pandemic economy? While affordability is a big factor, consider if you are truly ready to invest in property in the Philippines.

In the meantime, stay home and stay healthy!

While the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the information. The information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.

Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.

Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.

Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down the choices and find the property that best suits their budgets, home needs, and lifestyle preferences.

The company’s Real Estate Agents not only help in the shortlisting of options, but also provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.

Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.

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