Filtered By: Money
Money

PHL's new mid-priced condominium units down in 2013 – Colliers


Newly unveiled mid-priced condominium units in the Philippine property market fell back to “rational” levels this year, following record high launches a year ago, officials of property consultancy firm Colliers International Philippines said. 
 
“For the mid-market, we are seeing patchy results, seeing a dip in new product launches,” David Young, managing director at Colliers Philippines, said at a briefing Thursday. “This is a result of developers controlling supply in the market”
 
Last year, property developers unveiled a record 51,000 new high-rise units for sale. 
 
Julius Guevara, associate director for advisory and research at Colliers Philippines, told reporters that a total 45,000 additional units will be made available this year and 40,000 in the next. 
 
“Property firms developed a lot of stock, so they pulled back to be conservative. It's healthy to be at rational levels,” he said. 
 
The launches remain at “stable level for answering the needs for residential buyers,” Guevara said, adding that the low interest rate environment here keeps the mid-price sector up float.  
 
In the five sub-markets in Metro Manila tracked by Colliers, more than 2,370 high-rise residential units were completed in the third quarter with a further 4,880 units slated for completion by year-end. 
 
The consultancy firm noted strong growth in high-end condominiums, priced at least P5 million, as the property sector feeds the appetite of rich Filipino and foreign individuals looking for investment outlets. 
 
Ieyo de Guzman, executive director for investment services at Colliers Philippines, said “richest” Filipinos are buying their second and third high-end condominium for personal use, while an “increasing” number of Japanese, Hong Kong Chinese, and Singaporeans flock to the local property market for investments. 
 
"The general market for high-end are still locals, because of the foreign ownership restriction,” said de Guzman, referring to the 40 percent cap on total stocks in a condominium for foreigners ownership. 
 
De Guzman said richest locals “usually pay in cash” for their second and third condominium units. “You see the same people buying these properties. They just want to have a lot of properties they can stay in.”
 
With tightening restrictions in Hong Kong and Singapore, foreigners are turning to the Philippines for secondary properties.
 
“They (foreigners) buy properties mostly for investments but also for personal use, somewhere where they can stay for a weekend,” said de Guzman. 
 
Early this year, Hong Kong and Singapore raised taxes for luxury homeowners and investment properties as part of their campaign against bubble risks stemming from speculative investments in the realty sector. — OMG, GMA News
LOADING CONTENT