Against the background of a health crisis, the first half of 2020 was a period of new challenges and opportunities for the property sector. As the country welcomed the third quarter, quarantine measures have eased up in almost all parts of the Philippines. The government moved to reopen the economy and recover from the ills of the pandemic. With careful observation of health measures, different regions have resumed business activities while putting in place efforts to fight coronavirus.
In this report, Lamudi aims to provide a snapshot of the state of real estate in the third quarter of 2020. We take a deep dive into the performance of key locations in terms of demand and supply.
REAL ESTATE DEMAND IN MAJOR REGIONS IN 3Q2020
The easing of quarantine protocols have benefitted the property sector. Construction initiatives were able to resume and government offices began issuing development permits again. Property seekers have maintained a strong appetite for real estate in major regions as they became more at ease with the new normal.
Even in the third quarter, the most popular cities in the capital reg ion are areas that host business districts and economic centers. This is a trend that has remained constant throughout the year.
In terms of the most viewed locations in Metro Manila for properties for sale, Quezon City led the list, accounting for almost half of the pageviews at 48.67 percent. Makati and Manila followed, with 15.52 percent and 9.98 percent of the pageviews, respectively. Pasig came next at 6.58 percent, and Parañaque at 5.83 percent.
The previous Lamudi trend report also mentioned Quezon City, Makati, and Pasig, with these cities being hosts to important business districts in the country. Manila, which houses the largest port in the country, and Parañaque, which is home to Bay City, have both taken a lead in the third quarter. This development may be attributed to more property buyers exploring locations close to employment opportunities.
Interestingly, individuals looking to rent have looked at these same cities as well.
Furthermore, the same five cities also topped the list of Metro Manila locations with the highest number of leads. Quezon City maintained its popularity and accounted for almost half of the leads at 49.54 percent. Makati came in second with 16.97 percent, followed by Manila at 9.44 percent. Pasig and Parañaque came in next with 5.98 percent and 5.68 percent, respectively. These areas registered the highest number of inquiries and emerged as the most preferred locations for for-sale properties in Metro Manila.
Specifically, interested buyers inquired about houses the most, with this horizontal real estate development type accounting for 43.27 percent of leads. Land obtained 31.52 percent, while condominiums got 17.02 percent.
These top five cities have also commanded great demand even in the first and second quarters of the year, making them truly resilient real estate hotspots amid the current crisis.
As quarantine measures eased in the third quarter, most buyers in Metro Cebu looked into houses; 51.81 percent of the searches in Metro Cebu during this period were for this property type. Land, on the other hand, accounted for 30.76 percent of searches during the same time frame.
Interestingly, lot only properties garnered more inquiries compared to houses. Almost 46 percent of the leads were for land compared to the 36.31 percent of inquiries for houses. Condos, on the other hand, accounted for 10.38 percent of the searches.
The most popular property types in the region are house, land, and condominium. Houses accounted for more than half of the pageviews at 50.58 percent. Land took 32.29 percent, while condos obtained 10.03 percent of the pageviews.
Overseas inquiries on Metro Davao properties have remained strong, increasing by 11.98 percent in the third quarter compared to the second quarter.
Aside from the urban centers, Lamudi saw a strong real estate demand in other vibrant regions, including South Luzon and Cagayan de Oro (CDO). South Luzon has become a viable alternative to Metro Manila cities as they offer proximity to the capital region sans the hustle and bustle. CDO, meanwhile, has sustained real estate demand being the regional center of Northern Mindanao.
REAL ESTATE SUPPLY IN 3Q2020
Real estate remains a practical investment and the residential demand from the previous years indicates the tread of growth post-pandemic. In 3Q2020, the growth in supply in Philippine real estate hotspots indicate areas inviting investment opportunities.