Property developers zero in on residential opportunities amid rising interest rates.
Metro Manila’s pre-selling condominium market is likely to be hampered by rising interest rates. In our view, compressing yields have also been compelling developers to delay condominium launches in the capital region. Colliers believes that developers are now taking a more cautious stance as they await the release of the new administration’s economic agenda, including pro-property reforms, and gauge general consumer sentiment amid rising inflation and interest rates. The secondary market, meanwhile, is likely to benefit from the return of foreign employees as well as local firms’ return-to-office mandates. We see this positively influencing prices and rents in major business districts. To attract potential buyers, we recommend developers offer more attractive and innovative promos and payment schemes; highlight amenities that will differentiate their projects and to attract discerning clients; and explore securing green building certification especially with the growing demand for more sustainable residential projects beyond Covid-19 pandemic.