Residential propety

The residential real estate market is preparing for a rebound

Things are looking up for the residential real estate market as the Philippine economy prepares to rebound this year.

In a report just released, real estate consultant Colliers International said it expects economic expansion to support demand in the residential sector, whether in pre-sale or secondary markets.

According to Associate Director of Research Joey Roi Bondoc, while they saw headwinds at the start of the year, including the spread of the Omicron variant, the gradual return of overseas professionals and a turnaround in business confidence and consumers should help fuel the recovery. more residential units.

Bondoc said they see rents and prices picking up over the next 12 months and those indicators bode well for the residential market.

In its report, Colliers said there were 8,731 units completed in 2021, up 159% from 3,370 units in 2020, and all new supply came from the Bay Area and Fort Bonifacio. He expects 6,500 units to be delivered annually from 2022 to 2026, and the Bay Area to continue to dominate the residential market.

From a residential stock for Metro Manila of 142,190 units at the end of 2021, Colliers projects a 16.8% increase to 166,140 units by the end of 2024. The largest increase is seen in the Bay Area by 45.3 percent to 43,970 units, followed by Alabang with an increase of 30.5 percent to 6,370 units. Others with expected notable increases include Ortigas Center with 18.3%, Araneta Center with 13%, and Rockwell Center with 10.6%.

Colliers said Metro Manila’s secondary market vacancy rate reached 17.9% in the fourth quarter of 2021, which it expects to decline to 16.2% by the end of 2022, supported by the 7-9% economic recovery forecast by the government, a rebound in office leasing and the return of expats to the Philippines with the easing of travel restrictions.

He noted that the return of local professionals to traditional offices is also expected to increase demand for units in major business centers, which should in part help improve vacancy.

He expects consumer and business confidence to improve, citing data from the Bangko Sentral ng Pilipinas Q4 2021 Consumer Expectations Survey, which showed that the percentage of households planning to buy properties over the next 12 months has increased from 3.6% per year to 4.2%. ago, as well as BSP’s forecast that the business outlook should continue to improve to 68.6% over the next 12 months.

The report indicates that OFW remittances will continue to be a key driver of residential demand in the country.

However, Colliers noted that residential demand should also be supported by low interest rates, which should keep mortgage rates attractive for investors.

He recommended that developers examine the viability of launching more horizontal projects in key provinces such as Pampanga, Bulacan, Tarlac, Cavite, Laguna and Batangas, as he observed sustained adoption of horizontal units in these locations.

In the same report, Colliers said secondary market rents and prices fell 4.6% and 6.5%, respectively, by the end of 2021. But he expects rents and prices increase by 1.7% and 1.5% in 2022 taking-until recovers.

The report further indicates that the recovery of the rental market will depend in part on the government’s successful vaccination program and urges more employers to welcome more of their employees on site this year. Improved office space utilization, he said, should push prices and rents back to pre-COVID-19 levels.

Colliers also observed that co-housing will be a popular option among employers and their workers in Metro Manila beyond 2022, particularly with the return of on-site operations and the return of metro traffic to levels of before the pandemic.

He recommended that co-housing operators improve their services to attract more tenants to their facilities, such as free housekeeping and laundry services and a stable internet connection, and bundle flexible workspaces with living. free in a co-living facility. The supply of co-living units is expected to reach 5,890 units, with the Bay Area accounting for 3,000 units, the central business district of Makati, 2,600 units and Fort Bonifacio, 290 units.

WorldRemit partners with Grainsmart

Last year, WorldRemit, a leading global payments company, partnered with rice retailer and franchisor Grainsmart to give its Filipino customers the chance to win a home-based business.

The three winners showed their entrepreneurial spirit and ran their own businesses, learning how to manage inventory and interact with customers during the pandemic.

Grainsmart Pangkabuhayan package winner, Cleofe Kreutzmann, a Filipina living in Canada, offered her sister, Monneth, the opportunity to run the home business she won, in their hometown of Parañaque.

Monneth devised new and unconventional ways to attract new customers and maintain the growth and momentum of the business, such as offering rice loans to colleagues and neighbors. Meanwhile, Cleofe regularly sent money via WorldRemit from Canada to help keep the business afloat.

The Kruetzmanns hope to continue growing the store’s customer base and are considering strategic expansion in their area.

Other winners include Rosa Mae Mabale, a student and youth worker from Norway, and Analou Sua, a caregiver from Australia, whose families plan to expand the franchise business they won by joining. going into agriculture and opening a convenience store.

“Our users go abroad to find better opportunities for their families. Understanding the sacrifices OFWs are making, WorldRemit remains committed to supporting their journey towards a better quality of life brought about by financial stability,” said Earl Melivo, WorldRemit Country Director.

WorldRemit currently sends from 50 countries to recipients in 130 countries, operating in over 5,000 money transfer corridors globally and employing over 1,200 people globally.

On the sending side, WorldRemit is 100% digital (cashless), which increases convenience and improves security. For those receiving cash, the company offers a wide range of options including bank deposit, cash pickup, mobile airtime recharge, and mobile money.

For comments, send an email to [email protected]