The year 2019 has been a strong year for the real estate scene. Lamudi has seen an increase in listings, pageviews, and the interest of seekers in the office, residential, and retail sectors in key cities all over the Philippines.
Here are some of the Philippine real estate highlights of January 2020.
The Month in Review: January 2020
Buy vs. Rent
As of January 2020, the searches for properties for sale (62%) are still higher than the searches for properties for rent (38%), a continuation of the trend that we already saw in 2019.
Most Popular Cities in January
Quezon City remains to be the top-searched city in Metro Manila. As seen in Lamudi’s trend report for 2018 and market review for 2019, Quezon City was also the city that seekers on Lamudi are most interested in.
The city remains to be the top choice due to its prime location for commercial and residential properties, affordability, and livability. In 2019, Quezon City opened up new office spaces and will most likely open more this year and the next years.
Outside Luzon, Cebu City remains to be the top city in Visayas in terms of searches on Lamudi, just like in 2018 and in 2019.
Colliers International said in their market report for Cebu in 2019 that the growth of BPO industries fuels the economy of Cebu, and this encourages further investments for more office spaces. Investments in the BPO industry have also fueled the demand for horizontal and vertical developments close to prime locations such as the Cebu Business Park and Cebu IT Park.
Most Popular Property Types
When it comes to buying, houses have the most searches (51%). Land comes second (23%), and condominiums (18%) complete the top three property types.
Property seekers show a strong interest in owning houses more than vacant lots and condominiums. This could be due to the presence of affordable housing segments scattered all over Metro Manila and in key provincial cities.
For renting, apartments have the most searches (38%). Condominiums come second (33%), followed by houses (20%). The searches for apartments include students and working professionals looking for budget-friendly accommodations close to their schools and workplaces.
Renting condominiums has also been a trend, as most business districts are outlined with condominium developments and some investors choose to purchase a unit as a source of passive income. Young professionals working in the city also have an interest in the condominium life within the bustling business districts.
Searches for house rentals include starting families looking to upgrade to bigger spaces or to an actual house instead of an apartment or a condominium. House rentals are ideal for those who want to live in houses for a budget-friendly price.
Most Popular Price Points
When it comes to buying property, seekers are ready to spend around Php 1.5 million to Php 3 million (17%), while budget-conscious Lamudi searchers also consider more affordable options within the Php 450,000 up to Php 1.5 million bracket (15%). More expensive property options costing Php 3 million up to Php 4.5 million account for 14% of searches, tied with the luxury price point over Php 20 million, showing that Filipino property seekers are willing to spend more on a life-long investment.
For properties for rent, the usual budget of seekers is around Php 15,000 to Php 30,000 (34%), followed by the more affordable Php 5,000 to Php 15,000 (28%), which may include young professionals who choose to live closer to their workplace at around the same price of their commute. In third place is the Php 30,000 to Php 60,000 bracket (13%).
Real Estate Supply
Cities with Most Number of Listing
According to Lamudi’s data for January 2020, Quezon City is the city within Metro Manila with the most number of listings, seemingly in response to the high demand for property in the area. Quezon City being the top-searched city encourages the increase of listings for future property owners.
Looking at provincial cities, Angeles City, Pampanga has the most number of listings as of January 2020. The increased number of listings could be due to the developing IT and BPO industries in New Clark City, which contributes to the residential developments opening up near these investment hubs.
For-Sale vs. For-Rent Listings
On Lamudi, listings for properties for sale (82%) take the bigger slice of the pie compared to listings for rent (18%). As of January 2020, the luxury market is thriving, with properties for sale priced Php 20 million and up accounting for 21% of listings. For rental properties, most listings are within the Php 15,000 to Php 30,000 bracket, making up 27% of the total supply.
This Month’s Highlights
- In January 2020, foreclosures had the highest turnover, given the number of properties marked as sold over the total inquiries made for the property type within the last 100 days.
- Houses for rent had the highest turnover, followed by condominiums, given the number of properties marked as rented over the total inquiries made for the property type within the last 100 days. It is worth noting, however, that condominiums for rent are threefold the number of houses for rent.
- Dubai is the city with the most number of seekers outside of the Philippines. One factor that could be contributing to this is the number of OFWs staying in Dubai looking to invest in their own home back in the Philippines.
- The most number of listings uploaded by one broker in January 2020 is 124.