While Metro Manila is certainly not out of the woods yet in terms of its real estate losses brought about by the pandemic, it does have some bright spots going for it heading into 2022. Pasay City, or the Bay area, in particular, is most notably one of them. The Bay Area is quickly shaping up to be a key focal point for residential demand in the succeeding years.
Sure, there has been slower take up overall, due in large part to gaming firms pulling out during the height of the country’s COVID-19 battle. But there are plenty of signs that point to a positive outlook for Pasay real estate next year and Metro Manila as a whole. This is due to demand coming from offshore gaming employees, the return of office leasing at the Bay Area business district, and new residential stock coming soon. The Global Property Guide also reports that gross rental yields in Metro Manila mid-2021 remain steady at 7.01% on 45 sqm. units to 7.16% on 80 sqm. unit condos. By 2023, Colliers International Philippines expects the Bay Area to have the highest residential stock in all of the metro, as well.
In 2021, the Pasay Bay area even overtook the Makati central business districts (CBD) for the highest supply of condominium units in all of Metro Manila. The area, together with Fort Bonifacio in Taguig, accounts for more than 85% of total completions this year.
What does this mean for homebuyers? Well, this ultimately tells us that the Bay Area is poised for a residential market boom when it comes to its vertical developments or condos. Offshore gaming employees, the return of office leasing, and Bay City investments spearhead the resurgence in this submarket.
And with the Bangko Sentral ng Pilipinas (BSP) keeping interest rates at 2%, this should help attract property buyers and investors to the region. Colliers International also expects a 2% average annual increase in rental and sale prices between 2022 and 2025. Buy real estate here and you can assume steady returns coming your way in the long haul.
Where to Look?
The surge in demand will also likely be driven by mid-income and luxury projects, as per Colliers. In this regard, you can look at these projects on Ohmyhome for your property investment.
Reside in Pasay with Grand View Tower, The Radiance Manila Bay, and Shore 2 Residences. Each development offers inventory in the middle- to high-end price range. Projects like these enable users to live in convenience, safety, and comfort, which are now more than ever important for young professionals and families in a post-pandemic setting.
Their close proximity to the Mall of Asia Complex, an important landmark in Pasay. It has also emerged as a top business distinct, led by multinational brand investment and its development as an e-commerce center.
The location is near the Ninoy Aquino International Airport (NAIA), too, and has direct routes leading to the Makati, Taguig, and Parañaque. These all make it an attractive residential option for investors and Overseas Filipino Workers (OFWs) looking for a starter property investment with offshore gaming and Business process outsourcing (BPO) in mind. Studio and one-bedroom unit prices here range from ₱4,431,840 to ₱6,000,000.
Likewise, SMDC projects such as S Residences, Ice Tower, and Sail Residences offer the same benefits and growth potential. Preselling properties here are all set to be completed by the end of 2024. These condos emphasize luxury and recreation. Units on the upper end of the spectrum (two-bedroom properties and up) at these projects are priced at ₱13,957,000 to ₱17,500,000.
All in all, the promise of the Bay Area’s resiliency, future residential demand, and the continued development of its business district make it an ideal place to invest in. And with an abundance of condo supply, we can expect the Bay Area to be a key demand driver in Metro Manila property.
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 their 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.