The ongoing shift of real estate development projects into the provincial areas is likely to generate new demand for residential property in 2017 as the move will be tapping new market segments, real estate services firm CBRE Philippines predicted.
Developers have been pursuing projects outside of Metro Manila to expand their project portfolios.
“On the supply side, countryside expansions, as well as innovative residential developments, are expected to generate new demand as they are seen capturing relatively new market segments,” CBRE Philippines’ director for tenant representation services Morgan McGilvary told reporters in a briefing earlier this week.
McGilvary also noted that investor confidence is also expected to sustain demand particularly for condominium development projects.
This is driving developers to “spice up their residential portfolios,” he said.
McGilvary said the positive sentiment among investor is expected to persist in the coming year.
“Sustained investor interest, growing investment from Overseas Filipino Workers (OFWs), a robust BPO sector and the influx of millennial workforce are expected to persist, underpinned by the country’s sound macroeconomic fundamentals,” McGilvary said.
Moreover, McGilvary noted that Makati and Taguig, particularly the Bonifacio Global City, still remain the top choices for residential condominiums both for investment and end-use, largely because of their prime location.
The current average asking price for luxury residential developments in Makati and BGC ranges from P203,000 to P240,000 per square meter and P180,000 to P228,000 per square meter, respectively.