Real estate boom to continue next year

MANILA, Philippines - The Philippine real estate market will remain an attractive sector for investments next year with several growth opportunities seen for both investors and homebuyers, online property portal Lamudi said.

In its latest report, Lamudi Philippines lined up the top real estate investment opportunities for the coming year as it expects another robust period for the country’s property sector.

“Two of the most searched property types by Filipinos are apartments and townhouses, especially in suburban areas like Quezon City, Parañaque and Las Piñas. These properties are very much in demand among renters, especially starting families as they provide much larger spaces than condos yet they are more affordable than stand-alone houses,” Lamudi Philippines said.

Aside from apartments and townhouses, the report showed high-end condominiums are also expected to perform well both in capital appreciation and rental rates.

“Metro Manila’s condo boom is far from over, but developers are holding back on their new launches due to massive supply especially in the mid-market segment. This does not mean, however, that no opportunities are available in the condo market,” Lamudi Philippines said.

But unlike condominiums where a huge number of units can be built within a relatively small parcel of land, Lamudi Philippines said there is only a few land developers developing subdivisions.

This is the reason why residential lots in these projects are highly sought after and their values appreciate quickly, it said.

For the office segment, Lamudi Philippines said strata-titled offices should be the next best thing in terms of investments.

“Unlike the business process outsourcing (BPO) office towers built and owned by real estate developers and rented to BPO companies, strata-titled offices can be bought by individual investors and buyers and have them rented out to companies,” Lamudi Philippines said.

“For property buyers looking to diversify their investment portfolios, this property type makes sense as there is currently a shortage of office space in Metro Manila, especially in the major CBDs, placing an upward pressure on rental rates,” it added.

Among strata-titled developments currently on the market include Alveo Financial Center along Ayala Avenue, The Stiles in Circuit Makati, Century Spire in Century City, Capital House and One World Place in Bonifacio Global City, and Parkway Corporate Center in Alabang.