David E. 2m 498 #metromanila
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Despite a worldwide recession following the onset of the COVID-19 crisis, the Philippine real estate market remained steadfast and thriving. Over the past few months, rather than declining, the market has shown a steady climb that defied all expectations, despite city-wide lock-downs and quarantine protocols.
With many foreign companies eyeing the Philippines as their next regional center for business operations, the country is seeing a resurgence in investment opportunities, both residential and commercial. While the commercial aspect of the market is just as strong, it is the residential market that one should look out for. After all, opening up shop in Southeast Asia’s next big economic giant requires housing for your employees.
In this article, we take a look at some of the best residential property types in Metro Manila, the country’s capital district. Why does an investment in these properties promise lucrative returns and a sense of assurance despite the uncertain times we live in today?
Perhaps the most popular-and also, the most lucrative-property investment you can make in the Philippines is in condominium units. A fully-furnished condo for rent in Makati, Metro Manila’s leading and largest central business district, fetches around $1000 to $2000 a month in rent, with properties still seeing a continuous year-on-year increase of 29.1% over the past couple of years, with no signs of slowing down despite the pandemic.
With the residential real estate market in the Philippines predicted to grow further despite the pandemic, it should come as no surprise that investing in a condo is still one of the best investments you can make in Metro Manila.
In Q3 of 2019, the price of duplex houses surged 24.8%. In 2020, despite the coronavirus pandemic, predictions for duplex house prices remain optimistic: while the increase slowed during the onset of the COVID-19 crisis in early Q1 of 2020, early Q2 showed stabilization of prices that lead many speculators to believe a strong Q4 for this property type and an even stronger Q1 in 2021.
Duplex houses are popular among the growing young family population of Metro Manila. It is because it allows them the comforts of owning their first house while remaining inside the capital district, giving them the best of both worlds and providing them a property they can monetize in the future.
Over the same period as the rise of prices in duplex houses, townhouses also saw a modest but still notable increase of 6%, with an even sharper increase expected by late Q4 2020. Townhouses, usually located within or near Metro Manila’s CBD, can be a bit cramped. However, it’s still a prime choice for people who wish for a taste of suburban life without having to deal with Metro Manila’s legendary traffic congestion.
Whether it’s a modest home or a luxury loft, townhouse prices are expected to increase, albeit modestly, over the next few years. That is because more and more “green developments” pop up in the city, opening up previously congested areas and creating more aesthetically pleasing spaces for the public.