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Property market in Metro Manila seen to stabilize

Posted on May 11, 2016 08:29:00 PM [ bworldonline.com ]
By Krista A. M. Montealegre, Senior Reporter

PROPERTY developers are gearing up for the launch of more real estate projects this year after a contraction was seen in 2015, with the Metro Manila market expected to stabilize after a period of “correction,” real estate advisory firm Colliers Philippines said in a briefing in Makati City on Wednesday.

 
 Julius M. Guevara -- BW FILE PHOTO

Julius M. Guevara, head of advisory services at Colliers Philippines, said the total number of licenses to sell issued by the Housing and Land Use Regulatory Board (HLURB) increased 77% to 85,470 in the first quarter -- a turnaround from the 48% contraction to 48,411 a year ago -- as growth was seen across all segments except for farm lot and industrial.

HLURB now requires developers to start selling a project within a year from obtaining the licenses unlike in the previous years when there were no restrictions on the timing of the launches, Mr. Guevara said.

“This now more indicative of the plans of developers. It means when they get the license, they will pursue the project soon.” Mr. Guevara said.

Last year, the total licenses to sell issued by the HLURB dropped 14.5% to 410,834 from 480,743 in 2014.

The condominium market in Metro Manila exhibited continued growth, with low-cost condominiums surging 181% to 1,365; mid- and high-end condominium rising 18% to 12,805; and commercial condominium inching up 2% to 991 after a two-fold surge to 972 a year ago.

The number of units applied for by developers to comply with the balanced housing unit requirement was a major contributor to the growth, climbing more than four times to 9,104 from 1,772 in the same period last year.

Other segments that registered robust growth included open market housing, up 232% to 11,904; socialized housing, up 81% to 6,816; and economic housing, up 445% to 13,845.

Real estate firms are projected to sell roughly 30,000 units in Metro Manila this year, a decline of 6.25% from the 32,400 units sold in 2015, Mr. Guevara said.

“I think this year, the property market will stabilize then we will see steady growth. The numbers we are seeing is reflective of end-user demand so the launches will continue,” Mr. Guevara said.

The residential market in Metro Manila has been contracting since 2013 after take-up hit a high of 52,500 residential units in 2012, according to data from Colliers.

Land values in the country’s major business districts continued to go up and are projected to grow between 5%-7% over the next 12 months, Colliers said.

On a quarterly basis, land values increased by 0.4% to P502,000 per square meter in Makati, 0.4% to P418,400 per sq.m. in Fort Bonifacio, 4.6% to P123,000 per sq.m. in Alabang and 0.2% to P180,000 per sq.m. in Ortigas.
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