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Do the Filipinos, known as somewhat in between traditional and receptive people, fancy the vertical living set up?
For a typical worker with office based in Metro Manila, the crammed streets, overloaded buses and trains, and crowded malls are all but ordinary sights. On weekdays, Makati City, also known as the city in the Philippines with the highest daytime population, accommodates 10 times its population at night. The same thing happens to other cities like Manila and Quezon.
Because most of the work opportunities are found in these key cities, people who do not have homes in these CBD areas travel to and from their workplace every single day, enduring the traffic and public transportation issues of the country. Some can bear the trouble of traveling for two hours or more just to be home with their families, others simply can’t.
This resulted in high demand for residential spaces, but the scarcity on available land property seemed impossible to address until the introduction of vertical communities. These vertical communities are the answer to the lifestyle change the Filipinos need.
The Value of Vertical Living
Condominium living is a vertical living setup, giving dwellers more than just a roof above their heads. They provide the urban holistic lifestyle one deserves, making it valuable in 2019. More than a room to stay in, they have complete entertainment and recreation amenities. These mixed-use townships with integrated amenities that vary per market’s need make condo living more exciting. Each condominium develops unique offerings based on people’s needs and interests. Some have unique rooms, such as a library or a music room for properties located near schools. Others have gyms, dance rooms, infinity pools, game rooms, spas, and mini-theaters for additional relaxation.
Benefits of Vertical Living in the Philippines
Convenience is another selling factor for these vertical communities. Oftentimes, the property has a commercial area of its own. Convenience stores, restaurants, laundry shops, and almost everything else are within your reach. The location of these properties also provides accessibility, as they are strategically placed in prime areas near workplaces, near locations that are frequently visited, and of course, have easy access to transportation.
More than its original purpose of providing space for the tenants, these condos for rent have become vacation spots on their own. Staycations in condos, or staying inside one’s property on holiday, is another personal or bonding activity that millennials and families enjoy.
The condominium’s 24/7 security and emergency-ready facilities, which further make the investment worth it, should also not be forgotten.
The Present State
Real estate developers started to bring this change of landscape to the areas outside Metro Manila, most specifically to those areas with high tourism value such as Cebu, Davao, Bacolod, Iloilo, and Bohol. Vertical communities have also reached up-and-coming business districts like Batangas, Laguna, and Cavite.
Millennials, which comprise the biggest chunk of today’s working population in the Philippines, are said to be leaning towards acquiring a smaller space near their workplace. More feasible payment terms compared to those houses with lots also contribute to the selling proposition.
The Future of Vertical Living in the Philippines
According to a 2nd Quarter Report by real estate consulting services firm Colliers International, it will be long before the Philippines’ vertical communities bubble bursts. This year’s vacancy rate has lowered while the decline in rent was finally arrested.
Colliers said that as of the first half of 2018, 30,000 units had been taken up in the preselling sector, and the figure is expected to go over 60,000 units within the year.
According to the same report, occupancy in residential condominiums across Metro Manila significantly improved in the second quarter, with Colliers attributing this to the leasing power of foreign and local professionals and Chinese investors and workers working in offshore gaming companies.
Colliers see the warmer relations between the Philippines and China as the reason behind the increase in residential condominium demand. This leads to another prediction by the firm that if this trend continues, the Philippines will observe more inquiries from firms and businessmen based in mainland China, Hong Kong, and Japan.
If the developers’ schedule is followed, Metro Manila is expected to have 142,000 units in 2021, 33% higher than the units produced in 2017. About 8,600 units are expected to be completed annually from 2019 to 2021.
The firm feels positive about these residential condominiums data and even encourages high-end developers to produce more projects in the Manila Bay Area. More office constructions are being built; thus, high demand for residential properties is again expected.
Colliers also encourages real estate developers to start operating in Cebu, Pampanga, and Laguna, where the offshore business game is predicted to rise next.
Vertical living is the silver lining to this space problem and lifestyle woes Filipinos are experiencing. Since vertical communities are the real estate developers’ answer to address these concerns, the challenge is how these properties will bring them to a whole new level for them to stand out.
Sources: Make It Makati, Manila Bulletin, Colliers, Telegraph, Rappler, Businessworld
