More than 50% of property seekers prefer owning house
The real estate industry in the Philippines has been consistently strong each year and a survey shows that between owning lands-- condominiums, and houses -- most property seekers still prefer buying a house.
Colliers International Philippines, a real estate services organization, said that “when it comes to buying, houses have the most searches (51 percent). Land comes second (23 percent), and condominiums (18 percent) complete the top three property types”.
“Property seekers show a strong interest in owning houses more than vacant lots and condominiums. This could be due to the presence of affordable housing segments scattered all over Metro Manila and in key provincial cities,” the firm said in a forecast.
Philippines’ gross domestic product (GDP) growth for the second quarter of 2019 was at 5.5 percent – the slowest in four years.
Despite the decline, the country remains one of the fastest rising economies in Asia as it is backed by a young population, a growing middle-income class, and increasing urbanization.
The positive economic climate encourages more Filipinos to invest in the property market and seize opportunities to accumulate wealth.
Colliers notes that property firms should seize opportunities by developing industrial estates in alternative hubs like Bataan, Bulacan, and Pampanga. It also sees big gains from manufacturing investments from Asian and European countries, as well as infrastructure projects under the public-private partnership scheme.
On the other note, searches for rentals are popular with students and working professionals who are looking for budget-friendly accommodations near their schools and workplaces.
Apartments have the most searches (38 percent). Condominiums come second (33 percent), followed by houses (20 percent).
Renting condominiums has also been a trend, as most business districts are outlined with condominium developments and some investors choose to purchase a unit as a source of passive income.
Young professionals working in the city also have an interest in condominium life, obviously for convenience, within the bustling business districts.
Searches for house rentals are also more popular among couples who are looking to start a family.
Most Popular Price Points
When it comes to buying property, seekers are ready to spend around PHP1.5 million to PHP3 million (17 percent), while budget-conscious searchers also consider more affordable options within the PHP450,000 up to PHP1.5 million brackets (15 percent).
More expensive property options costing PHP3 million up to PHP4.5 million accounts for 14 percent of searches, tied with the luxury price point over PHP20 million, showing that Filipino property seekers are willing to spend more on a life-long investment.
For properties for rent, the usual budget of seekers is around PHP15,000 to PHP30,000 (34 percent), followed by the more affordable PHP5,000 to PHP15,000 (28 percent), which may include young professionals who choose to live closer to their workplace at around the same price of their commute. In third place is the PHP30,000 to PHP60,000 bracket (13 percent)