The Outlook Quarterly: A Wrap-up of the Philippine Property Market in 1Q2022

The real estate industry’s first quarter of 2022 concluded with optimism. Spikes in rental inquiries and achieved vaccination targets are some developments that have pointed to an improved business environment that has adjusted well to the new normal. In this report, Lamudi looks into property search and demographic activity in this quarter to identify new trends and anticipate where the market is headed.

Download the PDF version of this report here. 

Lead Growth by Property Type

Condos and apartments saw the largest quarter-on-quarter increase in leads in 1Q 2022. Condos attracted the largest increase in leads in Metro Manila and Mindanao, while apartments garnered the highest increase in leads out of all other property types in Luzon and Visayas.

The property types that attracted the highest lead shares varied across PH island groups. In Luzon and Mindanao, where horizontal developments composed the majority of leads, residential and agricultural lots were among the most popular sub-categories. Metro Manila and Visayas, areas where the share of leads for rentals had continued to increase throughout the last year, attracted most leads for condo and apartment units.

Most Searched Places by Island Group

In 1Q 2022, Metro Manila-based seekers appeared to prefer staying within the metro as cities within Metro Manila attracted the majority of their leads.

Nearly a third of all leads from Luzon-based seekers went to cities within Metro Manila. More than half of the top ten most searched locations by Luzon-based seekers were for cities in Metro Manila.

Of the top ten most searched cities by Visayas-based seekers, four were from Cebu–Cebu City, Lapu-lapu, Mandaue, and Talisay. The remaining six cities were split between cities in Metro Manila and neighboring islands in Visayas.

Leads from Mindanao-based property seekers were generally consistent from 4Q 2021 to 1Q 2022. A new addition to the top searched cities from seekers in Mindanao in 1Q 2022 was Pasay.

What Kind of Rental Units are Seekers Looking at in CBDs?

Leads for studio units, 1-bedroom, 2-bedroom and 3-bedroom units continued to increase across all three CBDs quarter-on-quarter. Prospective CBD renters contributed significantly more leads to 2-bedroom rental units in 1Q 2022 compared to 4Q 2021, a trend that may be driven by increasing preference for larger personal space following the pandemic.

In each CBD assessed, the top sources of leads were roughly split between property seekers within and outside Metro Manila. Seekers from Quezon City and Manila sent in the most inquiries for each city, while Makati, Paranaque, Pasay, Pasig and Taguig were also among the most active seekers for the CBDs.

A few cities in CALABARZON, right outside the metro, were also among the top CBD rental property seekers. Antipolo, Bacoor, Calamba and Lipa contributed significant shares of leads to residential rentals in CBDs in 1Q 2022, a trend influenced by employees abiding by RTO mandates and some students returning to face-to-face classes. Baguio and Cebu City were also among the top sources of leads for Pasig and Taguig respectively.

Data from the first quarter of 2022 also showed that unit preference varied by location of the property seeker. Nearly 50% of all leads from the aforementioned cities outside Metro Manila were for rooms, bed spaces and studio units. Seekers from these cities are likely renting as solo occupants or are returning and re-adjusting to costs of living in the Metro and opting for smaller spaces to minimize expenses.

Property seekers from within Metro Manila looking at the assessed CBDs generally preferred larger spaces, with 1-bedroom, 2-bedroom and studio units contributing the highest shares of leads.

Area in Focus: Davao Region

Referred to by many as Mindanao’s center for trade and investment, Davao Region is among the country’s leading real estate destinations outside of Metro Manila. Its capital, Davao City, is consistently among the top searched cities beyond NCR, having attracted the third most number of leads out of all cities outside of Metro Manila. The region is not only home to beaches and nature parks but also beneficiary to a number of big-ticket infrastructure projects in the works.

To uncover some of the property search patterns shaping the region, download the full version of the Outlook Quarterly here.

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