The Metro Manila condo market continues to perform with strong demand propelling the entire residential real estate sector in the Philippines. Data from Bangko Sentral ng Pilipinas (BSP) found the average price for condos in the country during the second quarter grew by 9.6 percent when compared with the same period last year.
The National Capital Region (NCR) saw residential property prices increase by 5.2 percent, however the number was brought down by a decline in prices for single-detached houses and townhouses.
Demand for home loans was strongest in Metro Manila with BSP noting that 43 percent of all residential loans granted came from the NCR. The bank added that the bulk of these loans were for condo units.
Looking beyond the Metro Manila condo market
While the Metro Manila condo market is seeing the bulk of the action, experts remain upbeat about prospects elsewhere in the country. Lobien Realty Group Inc. Chief Executive Officer Sheila Lobien explained to The Manila Times that areas such as Pampanga, Cebu and Davao are all promising.
“Cebu is home to the biggest masterplanned developments in the Visayas with numerous options for office, commercial and residential needs,” Lobien stated. “The province also has several infrastructure on the rise to cater to increasing demand in the real estate sector.”
For many developers in Cebu, 2018 was a great year with sales last year surpassing the expectations. Tourism has been a key driver for the market with the opening of Terminal 2 at Mactan-Cebu International Airport bringing a record number of visitors to the region.
“The year 2018 is the best year for us compared to previous years. Our sales registered the highest since we entered the real estate business in Cebu,” AppleONe Properties’ President Ray Go Manigsaca told Philstar.
Lobien also highlighted Pampanga as an area that has a well-positioned property market. The government’s infrastructure push has moved into the province with PNR North 1 line among the notable transportation projects underway.
The mass transportation railway will eventually connect Metro Manila with Clark International Airport and New Clark City, significantly reducing travel times in the process. Additionally, Clark International Airport is set to open a new airport terminal in 2020 with two more terminals in the planning stage. All of this work should help boost the local property market in the coming years.