BESIDES indirectly driving the Philippine economy by providing flesh to the now booming business process outsourcing (BPO), the country’s young citizens, called millennials, are also seen to be driving the local condominium market, according to property experts.
Claro Cordero Jr., head of research and consultancy at global property advisor Jones Lang Lasalle in the Philippines, said a chunk of demand for residential condominiums in Metro Manila could have come from the millennial market.
“Majority of residential condominium demand may have come from young professionals and young, upstart families, which is composed primarily, of the millennial market,” Cordero told The Manila Times. “This trend is growing due to the increasing income levels of this market segment, as well as availability of affordable financing schemes.”
Property listing website Lamudi Philippines estimated that one or two people in every working millennial’s network nowadays live in a condominium.
The online property agent firm observed that living in condominiums is becoming a trend among young Filipinos because of the many advantages that it presents to them.
“It has become a trend that dictates the lifestyle of many young Filipinos nowadays, especially those in Metro Manila, because of the many advantages, features, and services a condo offers and provides,” Lamudi cited in one of its online advertisements paid by a local developer client.
Lamudi said one of the advantages that condominiums offer is the shorter time spent traveling to work or school because of its accessible location.
“This is a great advantage because the shorter the time you spend on traveling or commuting means a longer time in your hands for rest or running errands,” Lamudi said, adding that the rows of retail establishments incorporated in most condominium developments are another plus factor.
“Retail rows within or around a condo building are now almost always included for the convenience of the residents, making everything that they need just within reach,” Lamudi said.
It also noted that a lot of condominiums in Metro Manila have become more appealing to millennials due to added amenities like Olympic-size swimming pools and basketball and tennis courts.
CBRE Philippines Chairman Rick Santos said with the average age of Filipino workers at 23.2 years old, the Philippines has one of the youngest workforces in the world, which is now even setting the trend in the local real estate market.
Santos said the millennial market has boosted profits of BPO companies, which have been keeping the local real estate sector busy.
He said the BPO market is taking the country by storm, adding an estimated six million square meters of office space in the market every year.
Santos said aside from the office property market, the residential property market is feeling the impact of the millennials, noting that more and more young Filipinos are opting to live in condominiums.