Pre-selling demand recovers
Nascent recovery in the offing: Pre-selling demand recovers as developers and investors remain cautious of rising interest rates
Metro Manila’s pre-selling condominium market is gradually recovering as shown by improvement in net take-up and launches. In our view, mid-income and luxury projects are likely to remain resilient for the remainder of 2022. Local and foreign employees returning to traditional office spaces should continue fueling demand for condominium units for lease in key business hubs. Colliers retains its forecast of a gradual recovery in rents and prices starting 2023.
The Bay Area will continue to dominate new supply and will likely have the largest stock by 2024. In our view, developers need to continue implementing attractive flexible payment terms given the substantial number of RFO1 units in the market. Stakeholders should continue to monitor interest rates and their impact on mortgage rates. Property firms should also continue assessing attractive price segments in various sublocations across Metro Manila as these will guide developers with their launches as they maximize market recovery post-Covid.