Metro Manila residential market to grow 50% in next 4 years —industry consultant

The Metro Manila residential market will grow by 50 percent in the next four years, driven by middle-income families and the office sector, real estate consultancy firm Santos Knight Frank said Wednesday.

Rick Santos, chairman and CEO of Santo Knight Frank, told reporters in roundtable discussion the growth translates to 3 million square meters of additional housing space.

"Filipinos are now turning into a nation of home owners from a nation of renters," Santos said, noting the residential sector holds a great potential for growth.

The middle-income market has become an attractive segment with the highest take-up of 22 units per month during the first half of the year, despite rising prices in Metro Manila.

Across all segments, residential property prices have risen with the affordable segment up 6 percent at P74,000 per sqm, while the mid-end rose by 1 percent to P115,000 per sqm and luxury properties up 1 percent at P220,000 per sqm.

"With the growing Filipino middle class, we forecast that demand will remain healthy in the forthcoming years," Santos said.

Another growth driver is the office sector.

"The 1.3 million strong workforce in the IT-BPO sector represents a sizeable market for residential developers and investors, " said Jan Custodio, senior director of research and consultancy at Santos Knight Frank, during the same briefing.

"Developers have designed new residential products that fit the specific needs of millennials and travel time at affordable rents,", he said

Santos noted a growing interest in high-end and luxury residences.

"Demand for luxury and high-end residences over the past quarters have been strong, with buyers coming not only from the local high and ultra-high net worth markets, but also from China, Japan, South Korea, Hong Kong, and Southeast Asia," Santos noted.

"In particular, the absorption of luxury residences is one of the highest vis-a-vis other segments at 86 percent, signifying a growing interest in the country's prime residential market," he added. — VDS, GMA News