A lifestyle mall, residential condominiums, offices and lush parks are just some of the things that highlight the township lifestyleat The Upper East.
MANILA, Philippines — Property developers will have to lower the prices of their residential condominium units and risk lower margins to address the inventory surplus in Metro Manila, according to real estate services firm KMC Savills.
Joshua de las Alas, KMC director for research, consultancy, and valuations, said during a briefing on Friday that although the average price of condos declined by 14 percent last year, this was already double 2016 prices.
Article continues after this advertisementThe price drop was due mainly to developers offering discounted packages to sell out their units.
simba slotsFEATURED STORIES BUSINESS Alfonso lone Filipino in Forbes '50 over 50' list BUSINESS Jollibee Group opens first Milksha concept store in the Philippines BUSINESS Ipilan Nickel starts ore exports“Inflation rate is one of the main factors … On top of that, construction costs have increased by 5 to 7 percent,” De las Alas noted, adding that the average price was now at P270,000 per square meter.
On average, monthly mortgage rates in the National Capital Region ranged from P20,000 to P40,000.
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Article continues after this advertisement Price mismatchHowever, De las Alas pointed out that the average Filipino family income earned around P40,000 to P50,000 a month, making it difficult to shell out cash for property on top of spending for necessities.
Alexander said Britain’s 2016 vote to leave the EU caused “significant disruption” to its trade policy and the country needed to recalibrate its global trade outlook.
Comments from top Federal Reserve officials suggesting they would like to see a slower pace of rate cuts tempered hopes for another bumper cut at the bank’s next meeting, while Middle East worries pushed gold to a new record.
Article continues after this advertisement“Residential prices have increased by almost 100 percent, but salaries have increased by only up to 20 percent,” he added.
This price mismatch made it difficult for developers to sell out their properties.
Article continues after this advertisementIn its 2024 property market report, KMC found that there were 37,800 unsold condo units in Metro Manila. Of these, 26,500 were in the mid-end market segment, or those priced from P3 million to P7 million each.
While it may be challenging for developers to trim prices, De las Alas pointed out that they still would have to adjust for consumers.
Decentralization“They don’t need that much margin anyway. It’s better to sell off the units at a lower margin versus not selling off the units at all,” he said.
KMC also found that prospective homebuyers still preferred property in the provinces as a result of high prices in Metro Manila.
De las Alas noted that the price of studio and one-bedroom units in the National Capital Region was already equivalent to the average price of a four-bedroom house and lot in the provinces because of lower land values.
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“It could start decentralization100royal, and you can see all these young families starting to live outside Metro Manila,” De las Alas said. “Developers have to cater to that demand.”
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