STRONG demand for real estate products will continue in 2021.
In its latest market research, Colliers International Philippines said demand for horizontal projects in key areas outside of Metro Manila, such as Cebu, will remain steady. But it warned that investors would be looking for homes offering larger living spaces, open areas and outdoor space.
“In our view, developers should continue to highlight both their vertical and horizontal projects outside of the capital region to cash in on the demand,” said Colliers. “In our view, those located in the fringes of cities such as Davao and Cebu are likely to continue investing in horizontal projects.”
Colliers said developers should also be on the lookout for old structures located within or near the cities that can be re-developed into integrated communities. It believes that the coronavirus pandemic has only highlighted both the investors and end-users’ desire to be in an integrated community.
“Demand for residential projects will likely hinge on integrated features such as immediate access to essential goods and services. We encourage developers to highlight these features of their projects as this will likely be among the major considerations of home buyers moving forward,” it said.
Real estate wasn’t spared by the impact of the Covid-19 pandemic. But thanks to technology, it has helped real estate agents continue selling inventories. The easing of quarantine restrictions also allowed developers to resume building their projects. Landlords also lowered their rental fees to help office and commercial lessees survive the pandemic-induced economic crisis.
According to Colliers, residential developers planning to capture the demand outside Metro Manila should implement strategic landbanking and follow the infrastructure projects lined up by the government that are due to be completed beyond 2022.
It also suggested that developers be more proactive in touching base with overseas Filipino workers (OFW) that fuel the demand for residential units outside Metro Manila.
“These house and lot and lot only projects are primarily end-user demand driven and are likely to benefit from a sustained demand from OFWs,” said Colliers.
Optimistic
Homegrown developer AppleOne Properties Inc. remains optimistic about the year ahead.
“Although it may take time for things to normalize again, we can already see that people are gradually transitioning their behaviors, their attitudes and lifestyles towards the new normal, which is even evident in their rekindled confidence to invest again in real estate,” said AppleOne Properties president and chief executive officer Ray Manigsaca.
According to Manigsaca, there has definitely been a shift in consumer priorities.
“We are seeing people giving more value to the luxuries of space, safety and security, convenience and accessibility, leisure and wellness and top health, to name a few,” he said.
“We know things will eventually normalize again when the vaccine becomes available to the majority; however, we know not to wait for this. This has not stopped us from continuing to move forward. Instead, it has propelled us to evolve as a company and find ways to reconfigure our strategies for growth and resilience,” Manigsaca added.
AppleOne said it will continue to expand its serviced offices, flexible/co-working spaces and virtual office business as the exclusive franchise partner of Regus for Visayas. Its integrated development named Mahi Center in Mactan is in full swing in terms of construction.
“We see the need of the market for more integrated developments that help elevate people’s lives and uplift their lifestyles, as well as the inclusion of a health and wellness center inside the mall in order to complement the growing needs of consumers for better integrated facilities that give value to their lives,” he said.
Better real estate
Meanwhile, calls for lawmakers to amend some provisions of the Real Estate Service Act (Resa) will continue in 2021.
According to Anthony Gerard Leuterio, president of A Better Real Estate Philippines (ABREP), the amendment of the Resa Law will allow the real estate industry to address the housing backlog currently faced by the country. It will also open up more opportunities for more Filipinos to find jobs by selling condominiums and house and lot units.
ABREP and representatives from the country’s largest real estate groups convened in November to discuss some of the more salient issues with Resa’s provisions, including the prohibitive and onerous Bachelor of Science in Real Estate Management degree requirement, the restrictive 1-is-to-20 rule for real estate brokers and salespersons, and the lack of consideration toward equal opportunity and the role of technology in today’s industry. / KOC