Home prices across the Philippines rose during the first quarter of this year when compared to the same period in 2021 with Metro Manila seeing a 9.5 percent increase. The Bangko Sentral ng Pilipinas (BSP) Residential Real Estate Price Index found that growth was driven by condominium units, townhomes and duplexes with detached housing actually decreasing in price.
According to the BSP, home prices increasing is consistent with the outcome of its recent Consumer Expectations Survey which showed that more consumers were looking to buy real estate in the first quarter of 2022.
Residential property prices in the National Capital Region as well as the rest of the country increased year-on-year, but the quarterly results were more mixed. These rose by 3.5 percent in Metro Manila between the fourth quarter of 2021 and first quarter of 2022. However, they fell by 2.1 percent in other areas of the Philippines.
Read More: Filinvest Land sees residential revenue growth during the first quarter
Condo market in Metro Manila to begin recovery in the second half
The condo market in Metro Manila is expected to begin its recovery in the second half, according to Colliers International Philippines. An improving business outlook along with the return of foreign employees will provide an enormous boost to the sector in the final half of 2022.
“Optimism in the market abounds especially with more economic sectors opening up. We now see more businesses encouraging their employees to return on site. This, coupled with the return of more foreign employees should have a positive impact on residential leasing. Joey Roi Bondoc, Colliers Associate Director and Head of Research, explained. “Hence, we are projecting a gradual recovery in rents and prices which should extend beyond 2022. Business and consumer confidence should spillover to the pre-selling market. Hence, we project a recovery which should start by the second half of 2022.”
Colliers noted that a gradual increase in prices across the condo market in Metro Manila was seen in the first quarter, but this will likely improve as the recovery moves forward. The consultancy predicts prices to rise by 2.7 percent by the end of 2022 as investor sentiment improves. Additionally, pre-selling demand will pick up slightly, although it’s going to be below pre-pandemic levels.
Related: Land prices in Metro Manila on the move
