The Outlook on the Residential Market 1Q2021
A year past the onset of the global pandemic and economic crisis, the Philippine residential real estate market had evolved along with seeker priorities and preferences. In this report, Lamudi looks into the performance of the residential real estate market in 1Q2021 as consumers adopt new attitudes towards purchases and investment.
RESIDENTIAL REAL ESTATE DEMAND IN 1Q2021
Gen X drives growth in condominium market.
The first quarter of 2020 saw college students and fresh graduates of the 18 to 24 age bracket leading in terms of pageview growth for condominiums. Consumer preferences in the first quarter of 2021 revealed a new trend. This year, seekers aged between 45 to 54 commanded the highest year-on-year growth figures for pageviews for condominium listings at an impressive 106.80 percent.
KB Realty Group’s previous trend report titled The Outlook on the Residential Market: Property investment as a safe haven during a crisis revealed a recovered demand for housing in central business districts (CBDs) in the first half of 2020. With flexible schedules and remote work continuing to be the norm, more C-suite executives within the age group may be looking at homes closer to the office.
Residential market for retirees showed signs of recovery.
Out of all age groups, property seekers over the age of 65 showed the most optimistic growth figures in the first quarter of 2021. After posting a 107.89 percent dip in annual pageview growth in the first quarter of 2020, interest from the retiree market rebounded to an uptick of 80.32 percent in the same period in 2021. The positive trend is indicative of an older population adjusting to the Internet of Things (IoT) and growing their presence on digital platforms. The age group also exhibited the highest year-on-year (93.58 percent) and quarter-on-quarter growth (77.16 percent) in pageviews for houses in the first quarter of this year.
Antipolo continues to lead the house and land market outside Metro Manila.
Outside the bustle of Metro Manila, Antipolo was the prime location of choice for house seekers and land seekers in the first quarter of this year. Antipolo garnered 24.05 percent of all pageviews for property seekers looking for houses outside the region. Identified as one of the leading leisure destinations in Indicators of Growth: Where to Invest in 2021, the city’s abundant green space and tranquility makes it an excellent option for seekers looking for a relaxed pace without moving too far away from family in the metro.
More seekers flock to Calabarzon in search of repossessed properties.
Seekers looking to invest in foreclosed properties showed a preference for the Calabarzon region the first quarter of the year. Foreclosure seekers appeared to zone in on San Pedro in Laguna, followed by Bacoor in Cavite and Lucena in Quezon Province. Given all the new residential, commercial, and infrastructural projects developing in Southern Luzon, the trend may be driven by seekers looking to capitalize on more affordable properties in a region ripe with opportunities for price appreciation.
RESIDENTIAL REAL ESTATE SUPPLY IN 1Q2021
Listings on KB Realty Group showed a sustained increase in 1Q2021, with houses followed by land continuing to contribute the biggest share of listings. Year-on-year growth data also revealed land and apartments posting the highest increases.
Data for the first quarter of 2021 points to a rise in available land to purchase or lease. With the ongoing pandemic, some landowners may be seeking to convert their land assets, free up cash and beef up their emergency funds. Given the rise in cloud-based services and the consequent demand for warehousing and logistics spaces, others may be looking to create larger passive income streams as they lease out their land for industrial or commercial use and collect rental payments.
TOP AMENITIES IN 1Q2021
KB Realty Group data in the first quarter of the year showed property seekers putting the creation of a home environment that promotes their health, well-being, and productivity as a top priority. Demand for fitness amenities and a strong internet connection in a property continued to increase.
Having a reliable internet connection also grew increasingly important this year, increasing from 12.57 percent of all amenity leads last quarter to a greater share of 18.24 percent in 1Q2021. With the delayed vaccine rollouts and reinstated community quarantine restrictions, flexible work and remote classes appear to continue being the status quo. Given this, a strong internet connection has become an essential feature of the home rather than an added amenity.
