Business and Economy
Demand for residential property seen to recover in 2022
MANILA – A leading diversified professional services and investment management firm forecasted that the demand for the residential property in Metro Manila will recover next year.
“Colliers expects a recovery in residential demand in 2022 on the back of rebound in office leasing, macroeconomic recovery, sustained remittances from Filipinos working abroad, competitive mortgage rates, and pick-up in business and consumer sentiment,” Collier said in a statement Thursday.
Based on its second-quarter report, Colliers said the completion of residential projects in Metro Manila this year is expected to support the rebound of the market until 2022.
In its report, outlook for completed condominium projects is expected to grow by 200 percent from 3,370 condominium units delivered last year.
Colliers added that the Bay Area has surpassed Makati central business districts (CBD) with the highest supply of condominium units.
“As of Q2 (second quarter) 2021, Colliers has recorded about 28,718 condominium units in the Bay Area, overtaking Makati CBD’s 28,551 units. At present, the Bay Area has the second largest condominium stock in Metro Manila, next to Fort Bonifacio which has 39,505 units,” it said.
Between 2021 and 2025, Metro Manila is foreseen to deliver 7,500 new residential units per year.
“Colliers has also observed a recovery in take-up of pre-selling condominium units in the fringes of central business districts. The demand in the peripheral areas has outstripped supply since 2018,” it said.
Colliers cited Makati Fringe, Manila-North, and Manila-South as the top fringe areas in terms of take-up from 2018 to first semester of the year.
The rosy outlook for Metro Manila’s residential market is also backed by the vaccination program.
“The inoculation efforts should contribute to a recovery of investor sentiment as the government aims to achieve herd immunity by Q1 (first quarter) 2022, which should inject a much-needed boost to the country’s residential sector,” Colliers added.
