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In the last quarter of 2023, adjusted price ceilings for socialized and economic housing were announced, along with the modified income tax holiday (ITH) for mass housing developers. The current administration has ramped up efforts to address one of the long-standing issues in the property sector: the housing backlog.
For its part, Lamudi helps address the current demand for affordable housing by reporting the latest updates on existing supply. Lamudi identified the locations of existing affordable homes for sale as of January 2024, highlighting that making these units easy to find is part of resolving the housing backlog.
NCR, CALABARZON, and Central Luzon Led Affordable Housing Supply
On the Lamudi platform, the National Capital Region (NCR) had the highest count of affordable home listings costing Php 6M and below for January. The most number of residential properties costing no more than the new price ceilings for socialized and economic housing (Php 850K to Php 2.5M) were found in Quezon City, Manila, and Pasig.
Outside Metro Manila, CALABARZON and Central Luzon had the largest supply of affordable properties, in that order. A whopping 90% of seekers in CALABARZON and Central Luzon expressed a preference for houses and lots. Meanwhile, in Metro Manila, almost 70% of affordable property seekers prefer condo properties.
Additionally, Central Visayas had the fourth-highest supply of affordable properties in January, next to Central Luzon. Affordable home seekers in Central Visayas were almost equally interested in houses and lots and condos.
Affordable Condos Most In-Demand in NCR, Houses and Lots in CALABARZON and Beyond
Based on Lamudi data for 4Q 2023, NCR took the highest share of overall leads for affordable housing for sale. Within the region, there was a stronger demand for condo properties (73%) than houses and lots (27%).
CALABARZON was the second most in-demand region for affordable homes in 4Q 2023, followed by Central Luzon, Central Visayas, Western Visayas, and Davao region. In all these regions, houses and lots were the most preferred affordable residential property type.
In Visayas and Mindanao, affordable property seekers gravitated towards locations with bustling hubs for the information technology-business process outsourcing (IT-BPO) industry. According to Lamudi data for 4Q 2023, Cebu City was the most-viewed location for affordable homes in Central Visayas, Bacolod in Western Visayas, and Davao City in Davao region.
To meet where the prospective buyers are, affordable home developers may consider strategic land banking in Visayas and Mindanao.
Overseas Property Seekers Equally Interested in Cities Within and Outside NCR
With OFW remittances showing a 3% increase from January to September 2023 versus the same period in 2022 as per PNA, overseas workers are still considered a major demand source for property.
On the Lamudi platform, overseas property seekers in Saudi Arabia and Dubai—the top two OFW destinations in 2023 according to a BusinessMirror report—showed an equal interest in cities within and outside Metro Manila.
Seekers in Saudi Arabia and Dubai were looking into affordable residential properties in Davao, Cebu City, and Cagayan de Oro. The same three cities in Visayas and Mindanao were also among the top picks of overseas property seekers in London, Canada, and the USA.
Demand in Cebu and Cagayan de Oro is partly driven by the cities’ economic growth and the influx of BPO companies. Davao City, on the other hand, attracts attention due to it being the site of a massive government housing project and modern mixed-use developments. Lower real estate prices in these cities also make them great alternatives to Metro Manila.
Meanwhile, overseas property seekers in Singapore were predominantly interested in Metro Manila cities, based on Lamudi data for 4Q 2023. Economically thriving cities in CALABARZON, such as Antipolo, General Trias, and Imus, also caught the attention of overseas property seekers on the platform.
There’s a possibility that overseas property seekers are investing in their hometowns, either to provide financial security for their families or to establish a passive income source. Continued overseas interest in PH real estate will only reinforce that the country is an ideal landscape for property investment.
Stay up-to-date with the latest trends in the Philippine real estate market by visiting the Lamudi Journal.
