Why luxury condos in Manila are in high demand
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Why luxury condos in Manila are in high demand

LUXURY condominiums in Metro Manila remain alluring to a variety of investors owing numerous factors, including their low prices, high rental yields, and sustained demand among locals and foreign buyers alike.

A residential report from Colliers International Philippines for Q2 2018, found that international buyers and even gambling firms showed a keen interest in Metro Manila’s luxury market and despite its relatively small size, the demand has been stable over the past few years.

The secondary market also continues to receive strong demand which draws affluent local and foreign investors to search for similar development projects in the city, according to Retalkasia.

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By the end of this year, Colliers sees at least 7,300 units delivered in Metro Manila, with 84 percent of the new units concentrated in Manila Bay, Fort Bonifacio, and Rockwell. The overall vacancy rates in the areas are also expected to hover between 11 and 12 percent.

From 2019 to 2021, the real estate company expects about 8,600 units to be completed with vacancy inching up to 12 percent and 13 percent in line with the accelerated rates of completed units.

In the three-year period, the rates of rental is expected to grow by 0.3 percent to 0.5 percent per annum during with the increase of supply from the Bay Area and Fort Bonifacio.

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Manila is forever expanding, making surrounding areas more attractive to investors. Source: Shutterstock

Aside from the stock market, affluent Filipinos are seeing condominiums as a viable investment option, with the shifts in lifestyles encouraging high-end investors and and residents from upscale villages to consider living in condominiums.

Typically, the upscale units in Manila’s high-end markets go for a minimum of PHP6 million US$112,000 and up.

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The Bay Area, according to Colliers, is a prime attractive location for deep-pocketed families from Southern Luzon and cities in Metro Manila who a turning to the condominium living.

The report also noted the improvement in occupancy of residential condominiums in the secondary market due to strong leasing from local and foreign professionals working in the central business district and Chinese investors and workers employed in the offshore gaming industry.

The transfer of Philippine Stock Exchange operations to Fort Bonifacio, apart from the sustained demand from expatriates and wealthy locals, should also have a positive impact on the residential towers there, according to Retalkasia.