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written by Emanuel Andrew Venturina, Head of IQI Philippines ANALYZING LOCATION-SPECIFIC SUPPLY AND EMERGING OPPORTUNITIESThe Philippine real estate market, particularly in Metro Manila, has experienced rapid growth over the last decade, marked by a significant rise in condominium developments. However, as we approach 2025, concerns about oversupply are emerging, especially in Ready-for-Occupancy (RFO) units. This article examines the condominium oversupply in Metro Manila, explores its implications, and highlights opportunities in the Philippine real estate market, driven by favorable economic conditions such as high GDP growth, low interest rates, and low inflation. Understanding Oversupply in Metro ManilaAs of 2025, Colliers predicts that the condominium market in Metro Manila is experiencing an oversupply, with more units being developed than the current demand can absorb. This situation could lead to increased competition among property developers and downward pressure on prices, impacting investors, developers, and potential homeowners alikeHowever, it is important to emphasize that not all property segments and condominium projects are affected by the oversupply. Each project and property offer unique value and benefits, making careful selection essential for buyers and investors.Emerging Opportunities in the Philippine RealEstate Market Despite the challenges posed by oversupply, opportunities still exist for investors and homebuyers in 2025, supported by several favorable economic conditions:Low Interest RatesWith interest rates projected at 5.7% by the end of 2024, financing options remain accessible. Prospective buyers can secure loans at manageable rates, making it an opportune time to enter the market or invest in existing inventory.Low Inflation RateA stable low inflation rate (3.2% average in 2024) allows consumers to maintain their purchasing power, boosting confidence in long-term real estate investments.Increased Demand for Luxury and High-End Properties While the lower to upper mid-segment may face oversupply, there is growing demand for luxury and leisure properties, as well as horizontal developments (e.g., townhouses and landed homes).Urban Revitalization InitiativesThe government’s commitment to urban renewal and infrastructure projects will enhance connectivity and accessibility, making less congested areas more attractive for residential developments.Investment in Sustainable DevelopmentsThere is a noticeable shift towards environmentally friendly and sustainable residential solutions. Developers focusing on eco-friendly designs and green amenities may gain a competitive advantage as consumers increasingly prioritize sustainabilityConclusionAs Metro Manila navigates the complexities of a potential oversupply in the condominium market by 2025, the concentration of available units in various locations presents both challenges and opportunities. While the oversupply may put pressure on some markets, economic factors such as low interest and inflation rates provide a favorable environment for strategic investments.Homebuyers and investors can explore opportunities in:Luxury and leisure propertiesUrban revitalization projectsSustainable developmentsTo capitalize on opportunities in the Metro Manila real estate market, thorough research, expert guidance, and active market monitoring are crucial. By adapting to the evolving landscape, investors can make informed decisions and maximize returns, even in times of oversupply.For more info on global insight. cick here!

PROLIFERATION OF MIX-USED DEVELOPMENTS OUTSIDE METRO MANILAIn recent years, the proliferation of office and residential hubs outside Metro Manila, the capital region of the Philippines, has become a notable trend. This shift is driven by several factors, including the need to decongest the overcrowded metropolis, the rise of remote work and digital technologies, and government policies promoting regional development.Economic DecentralizationThe government, along with private developers, is actively pursuing economic decentralization to spread economic activity more evenly across the archipelago. This is evident in the development of new business districts and economic zones in key provinces such as Cavite, Laguna, Batangas, Pampanga, and Bulacan. These areas have seen significant investments in infrastructure, including new roads, airports, and port facilities, making them more accessible and attractive for businesses.Improved InfrastructureKey infrastructure projects, such as the North Luzon Expressway (NLEX), South Luzon Expressway (SLEX), and the ongoing Manila-Clark High-Speed Rail project, are critical to this transformation. These projects enhance connectivity between Metro Manila and surrounding provinces, making it feasible for businesses and residents to relocate outside the congested capital.Real Estate DevelopmentThe real estate sector has responded robustly to the shift, with major developers creating integrated townships that offer both residential and commercial spaces. Developments like Clark Green City in Pampanga and Nuvali in Laguna offer modern amenities, green spaces, and sustainable living options that attract both businesses and families seeking a better quality of life.Growth of Secondary CitiesCities such as Clark in Pampanga, and Cebu and Davao in the Visayas and Mindanao regions, respectively, are rising as alternative urban centers. These cities are experiencing growth due to their strategic locations, availability of skilled labor, and supportive local governance. Consequently, they are becoming focal points for outsourcing and Information Technology-Business Process Management (IT-BPM) sectors, among others.Societal ShiftsThe shift to remote and flexible work arrangements, accelerated by the COVID-19 pandemic, has reduced the necessity for proximity to traditional business districts. This has empowered more people to consider relocating to suburban and provincial areas where housing is often more affordable, and the quality of life is perceived to be higher.Challenges and Future DirectionsWhile the trend of moving outside Metro Manila is promising, it also presents challenges, such as the need for adequate infrastructure, services, and governance in new growth areas. The ongoing commitment of both the government and private sector to address these issues will be crucial to sustaining and leveraging this trend.Overall, the proliferation of office and residential hubs outside Metro Manila reflects a broader transformation in the Philippines’ urban landscape, driven by changing economic, technological, and social dynamics. This trend offers an optimistic outlook for balanced regional development, potentially alleviating the pressures faced by the national capital while stimulating growth across the nation.for more update newsletter, click here!

CONSISTENT PH ECONOMIC GROWTHThe Philippines outperformed most Asian economies in 2024, posting a solid 5.8% growth in the first three quarters.Its growth outpaced key regional economies, including Malaysia (5.2%), Indonesia (5.0%), China (4.8%), and Singapore (3.8%). The third-quarter expansion of 5.2% came on the back of robust capital formation and accelerated government spending. The National Economic and Development Authority (NEDA) noted the resilience of the economy, especially in the face of weather-related disruptions such as El Niño drought and severe typhoons, highlighting the strength of the country's recovery.It said inflation, which averaged 6.0% in 2023, eased to 3.2% by November 2024, within the government's target range. The moderation in inflation was led by a drop in rice prices, which fell from 22.5% in June to 5.1% in November, following the implementation of Executive Order (EO) 62 that lowered rice import tariffs.Opportunities in Metro Manila Condo OversupplyRecently, Colliers Philippines has shared a report that there is an oversupply of condominiums worth 34-months while this might sound concerning, we see that this could be a temporary correction in the market and a possible shift to “buyer’s market”.The Metro Manila real estate is known for it’s great capital appreciation with an average of 15% annually in which made the prices really high. While this benefited investors who have purchased properties on the earlier stage this also made it difficult for those who want to invest today.As there are more properties available in the market, we can see a transition to a market more favorable to the buyers with potential discounted price for the secondary market. During pandemic, the developers also provided discounts and more flexible payment terms than enable the market to pick up.With the exodus of Philippines Offshore Gaming Operators or POGO which occupied almost 20% of office supplies and around 10% of residential properties, we also see a potential decline in rental rates which offers an opportunity to others.Ready to invest in the Philippines' thriving economy and real estate market? Explore opportunities in Metro Manila condos today!Data extracted in January 2025read more

PROPERTY MARKET: RESIDENTIAL A Sea Change The Metro Manila pre-selling condominium segment continues to see an extended remaining inventory life. This has compelled developers to take a more cautious stance and temper new launches in the capital region. While the central bank’s decision to cut interest rates bodes well for the sector, we do not expect the reduction to have an immediate impact on mortgage rates, which remain elevated. The headwinds in the property sector are prompting developers to continue offering innovative and attractive payment terms, as well as early move-in promos. Firms are also providing top-notch amenities and after sales service, which should help buoy demand in Metro Manila. The region continues to see a substantial number of unsold ready-for-occupancy (RFO) units. Developers are pivoting to stay afloat. More leisure-themed projects, including golf communities, are being launched from Luzon to Mindanao, injecting much-needed optimism into the residential sector, which is still suffering from elevated mortgage rates, high land values, rising prices of construction materials, and the exodus of POGOs.* RLC Buying PHP3.5 Billion Land for Taguig Project Robinsons Land Corporation (RLC) is investing PHP3.5 billion (USD 60.3 million) for the acquisition of a 61,761-square-meter (664,800-square-foot) land in Taguig City. The land will be developed into an integrated community called Bonifacio Capital District. The mixed-use project will be a joint venture partnership between RLC and the Bases Conversion and Development Authority (BCDA). Located beside the New Senate Building, the project will offer residential, commercial, office, hotel, and recreational spaces. Megaworld Allots PHP15 Billion for Ilocos Beachside Township Megaworld Corp. is investing PHP15 billion (USD 259 million) for the development of Ilocandia Coastown, an 84-hectare (208-acre) beachside township in Laoag, Ilocos Norte. The township will feature upscale residential developments, a shophouse district, a commercial district, a town center, and a 1.4-kilometer beachfront. SM Expanding Footprint in ClarkThe SM Group is allotting PHP2 billion (USD 34.5 million) for the construction of several hotels, a convention center, and a transport terminal in Clark, Pampanga. The terminal will connect SM City Clark to the upcoming North–South Commuter Railway (NSCR). Meanwhile, the group plans to add more hotels under the Park Inn brand over the next five years to complement the SMX Convention Center Clark.Uncover key insights into Philippines December 2024 real estate trends. Find out what's driving sales, prices, and listings- read the full update here!Data extracted in December 2024Read More