If you’re considering buying a condominium unit—be it as an end-user or to have it serve as an investment—you might be entertaining concerns over whether it would be a good place to put your hard-earned money.
Remember, this is a property you will be responsible for long-term. Would you be secure? Would you earn, should you decide to re-sell the unit? Would it provide a fulfilling living experience, or would it eventually become a burden? Taking into account the country’s current political and economic climate, and the societal anxieties arising from it, these are actually valid concerns.
However, once you consider the many factors involved, including your own readiness for such a commitment, you may find that it would be an attractive prospect to invest in a condo today. For property experts, the state of the Philippine economy, growing supply of condominium property, and increasing demand for rental housing might just make it a risk worth taking. Indeed, no investment is without risk, so it is always necessary to equip yourself to make an informed decision.
If you can see yourself buying a condo soon, consider the following in your decision-making:
Real estate market highs
The Philippine economy is in an upswing, and this is definitely evident in the real estate market. Colliers International, as cited in this article, maintains that the Philippines continues to be the third fastest growing economy in the country, behind Vietnam and China, even after hitting a three-year low in terms of domestic growth.
Apart from a young working population, growing foreign interest, and a steady flow of remittances, an aggressive real estate market boosts the economy. Despite inflation, volatile interest rates, and manpower shortage, the real estate market remains stable with a record-high supply for net take-up and supply in 2018 for condominium units. According to Colliers, the first three quarters of the year yielded 42,000 pre-sale units. Colliers predicts that by the end of the year, the trend could mean surpassing 2017’s total of 53,000 units sold. In the third quarter of the year, completion of new condominium projects also spiked at more than 4,900 units, from the 1,700 completed in the first six months of the year.
Another contributor to the real estate boom is migrant investment. According to this article, increasing demand from Overseas Filipino Workers (OFWs) for modern lifestyle residences has breathed new life to the condominium market. Developers are continually marketing their projects to migrants, seeing them not merely as consumers but investors. Remittances from OFWs continue to account for a large sum of the real estate sector’s aggressive performance this year.
Through measures such as flexibility in developments, pursuing residential projects in second and third-tier cities outside of Metro Manila, pushing for more public-private partnerships and foreign-owned contractors, and most importantly, policy reforms by the government, the real estate market can continue to stabilize and grow in the coming years.
Affordability, Growing Demand, and Substantial Returns
If you are considering buying a condo as an end-user, a wide range in prices will help you in determining what is right for you. Lower-range condominiums, for example, are great for first-time buyers and start-up families. Compared to condominiums, landed properties are more expensive in terms of size and location.
On the other hand, acquiring a condominium as a money-making venture is also something you can consider. Think about an investment plan for the unit you want to purchase: you can venture into “flipping,” which means that you’ll buy the unit, undertake the necessary upgrades and renovations, and sell it for a higher price; or you can opt to buy the unit and rent it out, for constant and long-term albeit modest passive income. The young working population would be an ideal target market for the second option, with many young professionals looking for residential units around business districts.
Condominiums are in high demand especially around these business districts, which also explains an increase in prices for condos in these areas. These top business districts include Makati, Bonifacio Global City, and the Bay Area, according to this article. However, given the considerable compound average annual growth rate (CAGR), which maps the constant returns over a period of time—14% for Makati, 9% for BGC, and 8% for the Bay Area—these areas would actually make for high-yielding investments.
As early as 2017, according to a whitepaper from Lamudi.com.ph, the following summarizes prices for condo units in Metro Manila:
Average rent of condo per sqm, based on Lamudi’s 2016 listings
CITY Ave. Condo Rent/sqm (2016)
Quezon City 613.98
Las Pinas 478.26
San Juan 470.58
For end-users, ultimately, the selling point for condominium residences is convenience and accessibility. With many developments built around the city’s busiest districts, acquiring condo units would be a good option for professionals. These developments are also often in close proximity to schools, hospitals, lifestyle centers, and churches, which make them valuable homes for starter families.
Top amenities and prime security are also much sought-after perks of condo living. Developments nowadays have nearly every facility you would need for a healthy and happy lifestyle—fitness gyms, wellness areas, recreational and play areas, world-class swimming pools, top quality restaurants, and even shopping centers. Truly, developments today bring convenience into a whole new frontier. Most condominiums also provide green spaces, such as garden areas and walkways, giving a touch of nature while living in the city.
Condo living today promises quality of life while in a cosmopolitan setting—something that would truly offer value for your money should you decide to go ahead and invest in a unit. One development that is sure to deliver on this promise is Empire East’s The Paddington Place. Situated along Shaw Boulevard right in the heart of Mandaluyong, The Paddington Place is an elegant, modern architecture-inspired four-tower development offering sleek and spacious residential options ranging from studio, one-bedroom and two-bedroom suites. With world-class amenities, including a shopping center, The Paddington Place promises to give the foremost experience in lifestyle, convenience, and quality condo living. Visit their website www.empire-east.com for more information or follow @empireeast of Facebook, Twitter, and Instagram. INQUIRER.net BrandRoom/MF