Millennials make up the most active overseas real estate market, according to the latest trend report from Lamudi Hotspots Unwrapped: 2020’s Most Popular Locations.
About 30 percent of the platform users looking at Philippine properties come from those aged 25 to 34 years old. The study suggests that millennials abroad may be looking for properties to house their family or tap into sources of passive income. They may likewise be seizing employment opportunities locally.
Gen Y on Home Ownership
This finding supports earlier observations by property experts shared in recent Lamudi roundtable discussions. In the virtual forum held in September titled On the Horizon: Real Estate Leaders on Market Recovery, industry leaders noted the increase in the number of millennials buying homes amid the pandemic.
They explained that financial habits have changed since the lockdowns. Money initially earmarked for retail and leisure expenses, such as in travels, may have been redirected to property ownership. Better deals in the market have likewise attracted millennials to buy homes. A few property developers offered discounts and stretched terms on downpayments. Moreover, Pag-IBIG lowered its interest rates to revive borrowing activity.
The experts in the forum also noted that the rise of work-from-home in the new normal has compelled millennials to consider homeownership.
Strong Real Estate Interest from Overseas
In the mentioned trend report, cities in Asia, the United States and United Kingdom, and the region of the Middle East flexed the strongest interest in properties in the country last year. The top five are Singapore, Dubai, London, Sydney, and Doha. The cities Los Angeles, Melbourne, Abu Dhabi, Riyadh, and Toronto followed. These are notable locations that have a high concentration of Filipino workers.
Real estate interest may be brewing at the same time as the remittances are recovering. In the latest report from Business Mirror, the Bangko Sentral ng Pilipinas (BSP) said that cash remittances in November 2020 increased by 0.3 percent to $2.379 billion from $2.372 the same period last year.
Governor Benjamin Diokno praised OFWs for the positive development in the midst of the current health crisis.
Remittances from land-based workers saw an uptick of 0.5 percent to $1.852, but those from sea-based workers shrank by 0.2 percent to $527.3 million.
Prior to this, OFW remittances reached a three-month high in October 2020, as reported by Manila Times. It hit $3.04 billion, a 5.4-percent hike from $2.88 billion in September 2019 and $2.96 billion in October 2019.
At the time, the BSP attributed the growth to land-based workers with work contracts of one year or more, as it rose by 3.3 percent to $2.374 billion from $2.298 billion in 2019.
Top PH Location for OFWs
According to Colliers International Philippines, OFWs make up a large portion of the horizontal market in Cebu, as they are the end-users. They will contribute to the resilient performance of house and lot units in 2021. Urging property developers to highlight sanitation and emergency preparedness measures, the consulting firm said that responsive property management is necessary amid the threats of the pandemic.
In the mentioned trend report from Lamudi, Cebu emerged as the top provincial location in 2020. This can be attributed to the business environment of the Visayan metropolis. According to the study, it remains to be a top location choice for establishing businesses outside the capital region. Residents can thus maximize employment opportunities.
Cebu is set to become a more attractive real estate hotspot as it sees more infrastructure projects completed in the next few years.
According to the ABS-CBN News report from October 2020, the Cebu-Cordova Link Expressway (CCLEX), which connects Mactan island to Cebu, was already 61 percent finished. With two lanes in each direction, it can accommodate 50,000 vehicles daily, reducing traffic congestion at Marcelo Fernan Bridge and the Mandaue-Mactan Bridge.
Meanwhile, the government is assessing investor interest in Metro Cebu Expressway, as Business World reported. It’s expected to cut travel time from the usual three to four hours to one hour only.
The Cebu Bus Rapid Transit will start this year, according to the Department of Transportation (DOTr)’s vow to the city council last November, reported in Cebu Daily News. Once finished, it will have 250 buses servicing at least 21 stations.
Sources: Business Mirror, Manila Times, ABS-CBN News, Business World, Cebu Daily News