Although 2020 has been full of challenges for the real estate industry, it remains to be an iconic year given the new opportunities that emerged from the pandemic. Despite the stay-at-home orders marking the majority of the year for Filipinos, popular real estate locations managed to remain resilient in terms of demand. Interestingly, new hotspots have emerged as a reflection of the market’s new normal needs.
In The Outlook by Lamudi: Provincial cities and overseas interest contribute to real estate resilience, we identified the top spots that have been attracting demand in the first half of the year. In this report, we’ll dive deeper into the most popular locations for Lamudi property seekers from January to December 2020.
Real Estate Hotspots in Metro Manila
Cities that host central business districts have maintained their popularity all throughout the year. It suggests that while everyday activities, particularly work, have become less dependent on location because of the rise of virtual arrangements, property seekers still put a premium on living within (or at the very least, near) cities that offer various employment opportunities.
Considering the figures from Lamudi, these are the capital region’s real estate hotspots for 2020:
- Quezon City
- Las Piñas
- San Juan
The top Metro Manila cities that host central business districts are marked by a strong rental market this year. The rental interest overtakes purchase in the majority of the popular locations, in Quezon City, Makati, and Pasig.
Houses and condos remain to be the most popular real estate types in the metro. In Quezon City, units in horizontal developments represent 29.25 percent of the leads. In Makati, condos dominate with 34.90 percent of the leads. Almost 30 percent of the leads in Manila are on house types.
Real Estate Hotspots Outside Metro Manila
Provincial cities have seen an increase in interest as well this year. The two key cities in Visayas and Mindanao, Cebu City and Davao City, are among the most popular. Interestingly, the majority of cities included in the list are near the capital region.
These are the real estate hotspots in the provinces in 2020:
- Cebu City
- Davao City
- San Fernando
Cebu commands a very active market, accounting for 26.56 percent of pageviews for provincial cities.
Davao’s local real estate sector is especially in a promising position as the infrastructure developments in the area continue to unlock property values and make real estate investment attractive.
Meanwhile, the rest of the popular provincial cities, except for Baguio, are in Regions III and IV-A, areas near the capital region. For a while, even pre-pandemic, there has been a gradual movement of going outside Metro Manila. Property prices are relatively more affordable and there is more land yet to be developed.
It’s also worth noting that half of the top provincial cities outside the urban centers are tourist hotspots: Antipolo, Angeles, Baguio, and Imus. This may suggest that the market is on the lookout for residential locations that not only accommodate new normal living, but also enable leisure amid a crisis.
The overseas demand for Philippine estate also continued to be strong in 2020. The most active section of the market in these overseas locations are the millennials. Those aged 25 to 34 represent 30.58 percent of pageviews. Interestingly, the most motivated are the generations older, 45 to 54, accounting for 28.60 percent of the leads. Millennials abroad may be looking for property for their family, as investment options and sources of passive income, or for possible employment opportunities locally, while the older generations consider investing in real estate for retirement
Albeit the challenges the real estate industry faced amid the pandemic, it managed to rise above the crisis. Hotspots that have been popular for years managed to withstand the health emergency’s blows, as emerging locations reached in-demand standing. With all that has happened throughout the year, it’s safe to say that the industry finished strong in 2020. This puts the sector in a better position to take on 2021, especially as optimism and confidence brew over the news of vaccination.
For trend report requests or inquiries, contact email@example.com or firstname.lastname@example.org.