THE condominium fever in the country continues to escalate as the demand among Filipinos for these residential units is expected to rise in the coming years.
In an interview, Jose Luis Matti III, executive director of CB Richard Ellis, said that condominium demand in the country has increased by at least 20 percent in 2011 from 2010.
"Our five-year forecast shows a 70 to 72 percent take-up of condominiums till 2016. These are condos that aren’t built, so that alone shows that 70 percent are accounted for in the next five years," Matti told Malaya Business Insight.
"I think demand is still very high, supply is still a little over the demand, but I think it will be taken up once the buildings are completed. It’s very healthy," he added.
According to Matti, convenience remains the utmost factor behind the popularity of condominiums among local buyers.
Matti noted that a new segment of condominiums is also attracting a lot of local buyers with its affordable price and quality features. This includes mid-priced offerings from DMCI Homes, PHINMA Properties and the Henry Sy-led SMDC.
"They’ve been providing those (affordable units) so it fits in the requirement for those who couldn’t afford the bigger, more traditional condominium types in Makati," Matti said.
"The rising star really is the middle segment dominated by DMCI, SM, PHINMA. Most of the major developers, even Ayala, have competitors in that segment, they’ll have to because those are really in demand and they sell quickly," Matti added.
A big portion of those Filipinos who buy residential condominiums are mostly coming from small families, or professionals who are on their late 20s and mid-30s with stable jobs, Matti said.
"The richer ones who can afford buy them for investment purposes. They sometimes buy multiple condominium (units) for lease because the returns are good especially compared to properties abroad," he added.
"Buyers have an option of leasing it and make money. In five to 10 years, they can sell it at a price at a higher price than they bought it for," Matti said.
"The rental rates are also high enough that sometimes the rental for certain units are enough to pay for the amortization, so basically there’s no cash out for you," he added.
With more options now available for condominium buyers to choose from, Matti said that he is expecting more Filipino families to invest in condominium units in the years to come.
"There are more choices now. Interest rates are also very low now. It’s so easy to borrow, banks are very liquid, they’re willing to lend, more people can afford them (condominiums) now," Matti said.
http://www.malaya.com.ph/nov10/busi2.html
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm. With over 31,000 employees, CB Richard Ellis serves real estate owners, investors and occupiers through more than 300 offices and 50 countries worldwide. In the Philippines, CB Richard Ellis has established its presence in 1998 and has emerged as the leading real estate service provider through its comprehensive portfolio of offerings: global corporate services, commercial office leasing, BPO/call center solutions, residential sales & leasing, research & consultancy, valuation and advisory, capital markets, and asset services. For more information, visit www.cbre.com.ph or call +632.752.2580.
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