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The end of the year is the season of eagerly anticipating the future. It’s the most fitting time to prepare for the new challenges and opportunities. Pressing on what’s ahead, however, doesn’t mean leaving the past behind altogether. In fact, looking forward entails looking back at what has happened. This is most crucial in the real estate industry, wherein the quickly-changing trends of the recent past essentially give a glimpse of what’s going to happen next.
That said, we’ve rounded up a year-ender review of the property trends in 2019, breaking them up according to key locations that made big progress this year. Treat this as a refresher–a helpful tool as you tweak, improve, or replace the strategies you plan to execute in 2020.
Cavite: Hotbed for Development
It’s not unknown that Manila is riddled with traffic gridlocks. For months, it has been the battle cry of urban planners and government officials to decongest the NCR capital by developing lands outside the metro. Cavite, the area closest to the southwest of the city, is the location of choice for property developments. Residential areas are popping up all over the region’s 16 municipalities and seven cities.
According to Lamudi’s Cavite Trend Report, there has been a 28.5 percent increase in listings in the first half of 2019 compared to 2018. The top listed property type is house, with an increase of 52.27 percent. There was also notable growth in the number of foreclosed property listings (184.68 percent).
In terms of locations, General Trias has the most number of listings, with 26.04 percent of the share. Tagaytay comes second, accounting for 20.5 percent of the total number of listings in the region.
Seekers of Cavite properties mostly come from Quezon City. From searches outside the country, there’s a growing interest coming from Dubai.
Condo unit listings garnered a 15 percent increase in terms of pageviews compared to last year. There was also a significant growth in terms of leads for houses and condos.
With the completion of infrastructure projects in the south, like the Cavite-Laguna Expressway, it’s expected that more developments will be on the rise in this region.
Bacolod: Economy on the Rise
The City of Smiles is emerging as a robust economic hub, particularly growing in information technology and business process outsourcing industries. This makes the province a fertile ground for real estate investments. Colliers International projects that the demand for commercial spaces will be spurred by call centers, knowledge process outsourcing companies that offer software engineering, financial technology, and health information management services.
The experts add that every year the average office rental rates will increase by two to four percent, considering the continued demand from mentioned industries.
According to Lamudi’s 2019 Bacolod Trend Report, residential developments saw a steady increase in demand for key locations in 2017 and 2018. The top-searched areas during these years were Alijis and Estefania. In the former, the figures show a 22 percent share of the total number of searches, a significant leap from 7.09 percent in 2017. In the latter, there was a 13.99 percent share, a huge increase from 6.12 percent in 2017.
Lamudi projects an increase in supply and demand of properties as planned infrastructure projects in Bacolod become fully operational and available to the public. This includes the construction of Bacolod Economic Highway, improvement of the Bacolod-Silay Airport, and Megaworld’s upscale township The Upper East.
Davao: The Go-to Investment Hub in Mindanao
The King City of the South isn’t the type to be left behind in terms of economy. It’s quickly becoming a real estate investment hotspot, given the local government’s enticing incentives for new businesses, the construction of major infrastructure projects, and the steady flow of remittances from OFWs.
According to Lamudi’s CEO Bhavna Suresh, as cited in the 2019 Cavite, Bacolod, and Davao Real Estate Spotlight, there’s a brewing demand for condominium units in Davao. The data recorded a 27 percent increase in interest from 2017 to 2018. The number of condo units leads also increased, registering a 106.66 percent growth from January to February. At The Outlook: Philippine Real Estate Conference, Ricardo Lagdameo, First Vice President of Damosa Land, a real estate developer homegrown in Davao, also mentioned that because of the popularity of the region, even major Manila developers are already in his turf.
Seekers for condominiums include Filipinos who are abroad. Particularly, it’s the properties at the heart of the financial district that are most sought-after. In terms of demographics, females between the ages of 30 and 40 years old are the ones seeking these types of properties.
Based on Lamudi’s data, the Davao-based areas that garner the most number of page visits are Buhangin, Talomo, Alfonso Angliongto, Ma-a, and Catalunan Grande.
The end of the year is the best time to look back at trends in the real estate industry. This will greatly help in creating your strategies for next year. Remember, your game plan for real estate success this coming 2020 should be aligned to the opportunities 2019 handed to you. So while you’re looking forward to new projects and strategies, don’t forget to look back. Trace the trajectory of the industry based on trends. Guaranteed, you’ll spot the next big thing.