CBRE Philippines: Residential properties in Metro Manila fringes growing
July 23, 2013
STRONG demand for residential properties in Metro Manila fringe areas shows that the residential market still hasn’t reached its full potential. The residential market in regions outside the Metro has been overlooked for quite some time, but demand in these areas, particularly for single-detached houses, is continuously growing.
The average monthly take-up of horizontal residential properties excluding socialized housing for 2012 is 816 units for Central Luzon (Region III) and 1,914 units for Calabarzon (Region IV). The growth potential in Metro fringe areas remains high, given the stellar take-up in these regions, driven predominantly by overseas workers. Economic developments priced at around P400,000 to P1.25 million are the most popular in Region IV, while units priced above P4.0 million are more saleable in Region III. Region IV had the most number of units given license to sell by HLURB, with a large portion of supply in 2011 and 2012 from economic housing developments.
Data from HUDCC (Housing and Urban Coordinating Council) shows that the total housing needs in 2013 amounts to 646,128, where 57 percent will come from new households who can afford to own/lease a residential property. This number will balloon to 7.5 million in 2016. The growing number of OFWs and BPO employees will drive the demand for horizontal developments, particularly for the economic housing developments. BPO full-time employees alone grow by approximately 30,000 every year. Jan Custodio, head of CBRE Global Research & Consultancy, shared during the latest briefing that, “Metro Manila’s fringes continue to present a viable opportunity for quality residential developments.” Rick Santos, CBRE Philippines chairman and founder, shared that there is a sustainable demand in the residential market. “This is the best property market we had in the past 20 years. The democratization of the housing sector, brought about by low interest rates and affordable payment schemes, is converting more Filipinos from renters to owners. Solid macroeconomic fundamentals, investor confidence, sound fiscal policies and record low interest rates will sustain demand in the property market.”