http://www.bworldonline.com/content.php?section=22&title=More-mid-market-condos-on-the-rise-until-2016&id=43276
NEARLY A third of the condominiums set to rise in Metro Manila until 2016 will cater to the middle-income market instead of affluent buyers previously targeted for such vertical developments, CB Richard Ellis (CBRE) Philippines said.
Around 31% of approximately 135,000 condominium units being tracked for completion through 2016 are considered “mid-market condominiums,” sold at a price range of P40,000 to P80,000 per square meter, with an average floor area of 30 to 40 square meters, the consultancy said in its third-quarter Metro Manila MarketView report.
“Previously, condominium ownership was limited to the upper class given its restrictive acquisition cost. However, the advent of mid-market condominium in the fringe of the business districts across Metro Manila has opened up a broader base market,” the consultancy said.
Acquisition costs have recently eased as the government has moved to provide development loan facilities to developers and cheap end-use loans to borrowers, further boosting their demand.
“Buyers of affordable condominiums can now avail of long-term housing loans to purchase condominium units to as much as P2.5 million per unit with mortgage rates of 11% VAT (value-added tax)-free,” CBRE Philippines said.
“[And] the new trend in housing or accommodation is accessibility.
First-home buyers are now ready to forego ownership of house and lots in the suburbs in exchange for short travel from home to work and any other necessities…” it added.
Most property developers are also recognizing opportunities in the mid-income market, with further growth seen in the coming years.
“Supply of this type of condominium will definitely outpace demand but not to cause a glut similar to the events of the 1997 [Asian financial crisis]. Hence, we expect a growth of this product niche in the near future, particularly in Metro Manila and other key urban centers like Metro Cebu and Metro Davao,” the report read.
“Previously, condominium ownership was limited to the upper class given its restrictive acquisition cost. However, the advent of mid-market condominium in the fringe of the business districts across Metro Manila has opened up a broader base market,” the consultancy said.
Acquisition costs have recently eased as the government has moved to provide development loan facilities to developers and cheap end-use loans to borrowers, further boosting their demand.
“Buyers of affordable condominiums can now avail of long-term housing loans to purchase condominium units to as much as P2.5 million per unit with mortgage rates of 11% VAT (value-added tax)-free,” CBRE Philippines said.
“[And] the new trend in housing or accommodation is accessibility.
First-home buyers are now ready to forego ownership of house and lots in the suburbs in exchange for short travel from home to work and any other necessities…” it added.
Most property developers are also recognizing opportunities in the mid-income market, with further growth seen in the coming years.
“Supply of this type of condominium will definitely outpace demand but not to cause a glut similar to the events of the 1997 [Asian financial crisis]. Hence, we expect a growth of this product niche in the near future, particularly in Metro Manila and other key urban centers like Metro Cebu and Metro Davao,” the report read.
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