Residential demand remains lackluster, while leasing continues to be lukewarm due to the notable absence of demand from POGOs and other expatriates. Recovery of the Metro Manila residential market hinges on the government’s inoculation program, the rebound of the office market, competitive mortgage rates, higher OFW remittances, and the attractive and flexible payment terms being offered by developers.
In the pre-selling market, take-up in 2021 is unlikely to outpace sales recorded in 2020, but Colliers noted opportunities in fringe areas. We recommend that developers continue highlighting the benefits of living within integrated communities and the towers’ proximity to commercial establishments and public projects. Investors should take advantage of attractive payment terms and competitive mortgage rates.
The government-projected economic rebound in 2021 and completion of infrastructure projects should also play a pivotal role in pump-priming the secondary market. Developers should be relentless in lining up projects and landbanking in key locations to maximize market recovery beyond 2021.
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