Growing interest in Philippines real estate

Online real estate property finder Lamudi made very interesting observations in its latest report on how the sector performed last year.

Lamudi noted that investments in the real estate industry in 2019 showed a more concerted effort to catch up to trends not only in Southeast Asia but also worldwide as well as a notable increase in joint ventures between national developers and international companies that has given the Philippines some of the most unique structures in recent years. All these, it said, is backed by a growing demand for a lifestyle that is hinged on green, smart, and connected environments. 

Some of the most notable drivers of real estate in 2019 are sustainability, infrastructure spending, overseas demand and tourism, Lamudi said.

The report pointed out that last year, several developers have focused on incorporating green architecture in their developments, due to increase in temperature and carbon emissions and to facilitate natural lighting and ventilation utilizing renewable energy.

Another trend in developments today, it noted, is the use of solar panels in homes which aside from being environment-friendly and reducing pollution is also a worthy investment in the long run due to the reduction of power losses. 

Lamudi said that overall, the growing trend of incorporating functionality and sustainability in homes and commercial spaces allows customers to enjoy a lifestyle that balances convenience and amusement, all while they invest in protecting and cultivating a green city for the future.  

Another important thing mentioned in the report is the fact that Metro Manila is not the only area that is thriving with commercial establishments, residential high-rises, IT offices, and thoroughfares linking each city together. Lamudi noted that provincial cities have also strengthened their presence in the property market by developing key areas for commercial and residential purposes. Cities like Cebu, Davao and Angeles, for instance, have welcomed booming IT industries in their investment hubs and have built bridges and roads, making it easier to travel through traffic and to have a more convenient connection to Metro Manila, the report said. 

It added that infrastructure projects like the New Clark City in Pampanga, CAVITEx, and the Mactan-Cebu International Airport in Lapu-Lapu City could bring an influx of people from Metro Manila to other prime cities all over the country to invest in new lands and pipelined developments. It recommended investing early on due to the increasing value of properties in the long run.

Meanwhile, according to the 2019 data by Lamudi, many seekers of Philippine real estate come from key cities all over the world. The increase of overseas seekers means that there will be profitability in condominium and housing projects catering to OFWs and Filipinos living in other countries, it said.

It pointed out that tourism has also contributed to the growth of key areas in terms of boosting the local economy and in promoting the beauty of popular tourist spots. Developers cultivate the area to invite tourists to invest in upcoming developments while future property owners may choose to invest in their favorite tourist spots due to the increase in value of properties over time, it added.

Interestingly, Lamudi’s 2019 data show that majority of seekers belong to the 25 to 34 age group, making 43.95 percent of the page views, and 48 percent of leads. The second highest leads come from those aged 35 to 44 with 16.9 percent, while the third highest are seekers aged 18 to 24 with 12.7 percent.

In 2019, the bigger share of Lamudi’s searches and leads belonged to females, with 55.62 percent of views and 61.4 percent of leads, compared to the 44.37 percent of page views and 38.6 percent of leads by male seekers, the report stated.

The report also revealed that property seekers on Lamudi show a strong interest in properties for sale, but make more inquiries for rentals. Last year, Lamudi data show that 60.59 percent of page views are for properties for sale, while 39.41 percent are for properties for rent. 

For 2019, the most popular type of property searched by Lamudi seekers are condominiums, making up 31.4 percent of the total leads. The second most sought-after property are apartments with 23.76 percent, followed by houses with 22.3 percent. But most of the buying leads were for houses (36.02 percent), followed by land (31.64 percent), with condominiums only at third place with 22.43 percent.

When it comes to renting, apartments are the seekers’ top choice, garnering 39.03 percent of the total renting leads. Condominiums are a close second with 37.35 percent, and houses come in third place with 13.19 percent, the report said.

Lamudi’s latest report also showed that  the top overseas cities with the most seekers looking into Philippine real estate are Dubai, Doha, Sydney, Los Angeles, London, New York, Riyadh, Melbourne, Abu Dhabi and Toronto. Houses are the most popular type of property for seekers outside the country, with 31.44 percent of total leads and 45.12 percent in buying leads. Condominiums, which account for 27.13 percent of total leads, are popular for rental inquiries (41.33 percent). 

Meanwhile, as of January this year, Lamudi revealed that the searches for properties for sale are still higher at 62 percent compared to those for properties for rent which account for 38 percent.

It said that Quezon City remains as the top-searched city in Metro Manila due to its prime location for commercial and residential properties, affordability, and livability.

Outside Luzon, Cebu City remains as the top city in Visayas in terms of searches in Lamudi. The report noted that the growth of BPO industries fuels the Cebu’s economy and this encourages further investments for more office spaces as well as demand for horizontal and vertical developments close to prime locations such as the Cebu Business Park and Cebu IT Park.

Also in January, the report noted that when it comes to buying, houses have the most searches at 51 percent, followed by land with 23 percent and condominiums with 18 percent. For renting, apartments accounted for the highest at 38 percent with condominiums at 33 percent and houses at 20 percent.

For comments, e-mail at [email protected]