Similar to it’s continually growing populations, high-rise residential developments continue to seeming to sprout up all over Metro Manila, as well as beyond. Be it Cebu, Baguio, Bacolod, and Davao, to name a few, the country’s metropolis’ skylines are now dotted with them, and as long as there exists a demand, these developments will continue to shape the country’s urban landscape.
According to Lamudi, a leading online real estate marketplace with operations here in the Philippines and in 13 other countries, the development of high-rise condominiums is expected to soar as the demand for the property, especially among young professionals, continues to increase.
Visitor data collected by Lamudi on its site from January 1, 2017 to March 16, 2018 indicates that property seekers who are 25 to 34 years old make up the bulk of prospective buyers of condominium units, as it accounted for as much as 37-percent of the views of listings for the said property on the website. Within this age group, Lamudi also observed that it is women users who are most interested in buying condominium.
This demand was followed by users aged 35 to 44 years old, who accounted for as much as 23-percent of the page views of listings of condominiums for sale last year. The older the age group seemingly is, the less likely that they are to consider buying condominium units.
The growth of the BPO industry has also continued to fuel the demand for residential condominiums, especially in areas where many of these businesses are located. Worsening traffic conditions and the congestion typical of major cities have made living in condominiums near the workplace the most viable option for most looking to save time and avoid the hassle that comes from daily commutes.
Data from Lamudi has shown that Makati is tops among cities which prospective condominium buyers consider when looking for high-rise residences. This is followed by Taguig and Quezon City. Mandaluyong and Pasig, which are just beside each other, round out the top cities most inquired about for condominiums.
Coincidentally, those who are looking for condos in the Makati and Quezon City areas also come from the two cities.
In the 1980s and 1990s, living in a condominium was typically associated with wealthy individuals who prefer the convenience of living near the workplace. Most of the condominium units at that time had bigger floor areas compared to today’s typical unit. Majority of these residential buildings were in Makati’s Legaspi Village and Salcedo Village, as well as in several areas in the Ortigas business district, Greenhills, and Quezon City.
Because traffic and the daily office commute weren’t that bad early on, living in a condo in Makati or Greenhills was more of a luxury than a necessity. But with the growth of the BPO industry and the surge in vehicular traffic that has led to chaotic road congestion, more and more young workers prefer to live near their workplace to avoid the stress of the daily office commute.
SMDC, the property development arm of Henry Sy’s SM Group, was among those who saw the potential of building and selling high-rise residential condo units to mid-range buyers who don’t mind shelling out money if it translates to convenience when it comes to beating the daily office commute. Many of SMDC’s properties are located near business districts and whose units have living areas that are way smaller compared to how condo units were 30 years ago.
“When these smaller-cut condos in multi-tower developments came, condos suddenly became more affordable to a huge segment of the homebuyer population,” said Jojo Romarx Salas, a real estate consultant and former director for research and consulting at local brokerage firm Pinnacle Real Estate Consulting Services, in an interview for Lamudi’s Outlook Report.
Other property developers like the Consunji-led DMCI Homes have also been one of the key figures in condo-development in the country with its “Asian design–inspired, no-frills projects that have become quite ubiquitous in Metro Manila, including its first project Lake View Manors Residences in Taguig,” according to Lamudi’s Outlook Report.
The Philippines’ strong economic performance over the last few years, together with the increase in the influx of money from OFW remittances and the growth of the BPO sector, have created a new crop of condominium buyers in the country. As their demand for convenience grew, so did the surge of condominium development not just in central business districts but on its fringes as well.
Areas that were once seen as idle government property, like Quezon City’s North Triangle, are now being converted into mixed-use development projects that target not just wealthy investors who have enough cash to spare but a new breed of buyers who are willing to invest their hard earned money in condo units in the name of convenience and a stress-free lifestyle.
Source: http://www.lamudi.com.ph/journal/millennials-fueling-surge-in-condominium-development-in-the-philippines/
