The real estate sector will “roar” in 2022
The Year of the Tiger will see the local real estate sector roar and regain its lofty stature, according to real estate analysts.
Citing data from First Metro Securities Brokerage Corp., Claro Cordero Jr., director and head of research, advisory and advisory services, Cushman and Wakefield told BusinessMirror that the next 12 to 24 months will bring good times for the sector. Philippine real estate boosted by a better operating environment and easier mobility while increased vaccination rates are seen as supporting a sustainable economic reopening.
The residential segment, according to Cordero, will see a boom propelled by the stable purchasing power of households, the recovery of the labor market and the continued flow of Filipino remittances abroad, as well as the availability of credit to consumers. . In addition, the easing of restrictions will lead to a faster recovery in sales in the retail segment and finally put an end to the rental reprieve. Although it is observed that rental charges are currently between 30% and 50% of normal levels, “landlords were now reassessing rental concessions quite frequently to enable them to set prices in the recovering operating environment. “.
Meanwhile, Colliers Philippines Associate Director Joey Bondoc expects increased remittances from Filipino Overseas Workers (OFW) to drive residential demand growth. Data from the Bangko Sentral ng Pilipinas (BSP) showed that remittances in September 2021 reached $2.7 billion (135 billion pesos), up 5.2 percent year-on-year. For 2022, BSP forecasts a 4% growth in remittances.
Colliers believes the nation’s workforce, led by millennials, will support the demand for integrated communities. “The concept of building offices, condominiums, shopping malls, schools and hospitals within one community responds to millennial demand for greater mobility and convenience,” said Bondoc. .
After two consecutive quarters of year-on-year (YoY) declines, the Bangko Sentral ng Pilipinas (BSP) Residential Property Price Index (RREPI) recorded a growth of 6.3% in the third quarter of 2021, units condominium showing a price increase of 13.6%. percent year-on-year while townhouse prices rose 37.1 percent year-on-year. A modest decline was recorded in duplex housing units by 0.2% year-on-year, while detached/attached houses contracted by 4.2% year-on-year. The improvement in the overall RREPI resulted from the slight recovery in demand for residential properties due to a more favorable economic outlook, while the low interest rate environment boosted new residential real estate loans by 51.1% year-on-year annual in the third quarter of 2021. Residential prices in the National Capital Region also posted faster growth of 11.4% year-on-year compared to residential units outside Metro Manila, which increased by 4, 9% YoY.
Bondoc said the recovery in residential prices accelerated alongside the economy’s better-than-expected performance from the third quarter of 2021, encouraging an increase in residential transactions.
Go digital for growth
Bria Homes, a subsidiary of Golden MV Holdings, has chosen the digital route to stay competitive despite the pandemic.
Eduardo Aguilar, president and chief operating officer of Bria Homes, told BusinessMirror that going digital by strengthening its online presence and allowing virtual transactions to thrive has enabled the company to continue selling its products. in the affordable market.
“To date, Bria Homes’ strong digital connections stand firmly in the safety of its potential buyers as they explore the wide range of options offered by Bria Homes. Imagine getting a glimpse of one of Bria Homes’ 50+ residential projects from the safety of their homes by immersing yourself in Bria’s 360 Virtual Tours,” said Aguilar.
Official virtual tours also offer potential clients from anywhere in the world to check out developments of their choice and help them visualize what their new home would look like.
In response to the growing demand for vertical living, Aguilar said Bria will ramp up the construction of its vertical villages this year. “Prepared to meet the needs of mobile young professionals and start-up families, these mid-rise condos will offer comfortable and intimate co-living in elegant walk-up buildings where residents will be encouraged to forge small, tightly-knit communities,” said- he explained.
In addition to featuring compact and efficiently laid out living spaces, Aguilar said the Vertical Villages of Bria will feature a nice set of amenities rarely offered in mid-size budget condos, such as communal pavilions with bathrooms. reception, spacious swimming pools and playgrounds, as well as comprehensive sports facilities. . There will be jogging paths, landscaped gardens and walkable green spaces to encourage residents to adopt active and holistic lifestyles.
He said all vertical projects will be strategically located to allow residents to have easier access to economic hubs.
Aguilar is confident that the company will be one of the best performing companies in the real estate market in 2022 going forward.
“Bria Homes prides itself on offering the best value for money to all aspiring Filipino homeowners,” said Aguilar. “As the pandemic continues to reshape the way Filipinos spend or invest their money, our resolve to provide well-designed homes of choice to potential buyers can only grow stronger.”
Meanwhile, PHirst Park Homes recently launched its ninth development and the furthest south project from 2021. “It is a 23 hectare development. It will be the future home of approximately 2,000 Filipinos here in Tayabas, Quezon,” PPHI General Manager for Tactical Sales Robert Gil said at the launch of PHirst Park Homes Tayabas.
The property launch also showcased the beauty of Tayabas and the grandeur of PPHI properties. This four-part digital miniseries inspired by the “Amazing Race,” featuring online influencers and PPHI employees, unveiled the various activities adventure-seeking owners can enjoy inside PPHI Tayabas. The unique launch not only showcased the fascinating ecological wonders of Tayabas, Quezon, it was also an avenue that recognized the city’s rich heritage and culture.
“We’ve been all over the North, we’ve been all over the South. And we will continuously develop and supply the units that we call affordable, beautiful, complete homes nationwide,” Gil said.