The Philippine Real Estate Market in 2Q2023: Imminent Business Boom in Luzon and Beyond
The second quarter of 2023 saw an economic slowdown due to high commodity prices and the lagged impact of interest rate hikes. Lamudi reveals how the real estate market is holding up despite economic headwinds.
Vertical residential and commercial properties grew at an equal pace in the first half of the year. The double-digit lead growth for both property types in 2Q 2023 indicates homebuying appetite and business intentions.
An increase in commercial investments was a driver of the country’s moderate economic expansion. This reflects the 30% increase in quarter-on-quarter leads for commercial properties on Lamudi. The tourism sector likewise hiked its share in the Philippine economy, pointing to opportunities that can be gained from property investments, particularly beach and agricultural lots.
Key Insights from KB Realty Group’s The Outlook Quarterly 2Q2023
- Overall leads for properties for sale posted a significant quarter-on-quarter growth of almost 110%. More than a quarter of all leads were for condominiums.
- Amenities related to ventilation and leisure sustained demand, posting a slightly higher lead share than the previous quarter. As the country braces for the impact of El Nino, Lamudi sees comfort amenities (e.g., air conditioning and balconies) remaining in steady demand.
- Land continues to be a stable choice of investment. KB Realty Group identified the island of Luzon as a hotspot for lots for sale. Metro Manila, Cavite, and Rizal were the top three most viewed locations for this property type in 2Q 2023.
- CALABARZON led the online lot searches on KB Realty Group. The most viewed price segment in Batangas, Cavite, Rizal, and Laguna were lots priced below Php 3M.
- In Metro Manila and Cebu, lots costing Php 12M and above are the most viewed, partly due to the scarcity of supply and higher price range.
Consumer Confidence in CALABARZON Lots for Sale
CALABARZON is a fast-growing region with adequate infrastructure for its population size and growth. Four of its five provinces made it to the top ten locations for lots for sale; Rizal and Laguna received the most leads in the economic price segment.
The five-year development plan for CALABARZON aims to strengthen its priority industries: information technology, metals, electronics, automotive, and petrochemicals. Further, the plan seeks to modernize agriculture and agri-business and expand employee opportunities.
KB Realty Group identified the hottest markets for lots for sale in CALABARZON and beyond, opening up opportunities for investors to achieve sustained growth.
- The top ten most viewed locations for agricultural lots for sale were in Luzon. Cavite, Batangas, and Rizal topped the list in that order.
- Cavite and Batangas received more pageviews than any other location for agricultural lots on KB Realty Group. Both provinces are also gaining popularity due to their suitability for agri-tourism activities and farm villa rentals.
- Farm-to-market roads will further increase the value of agricultural lots in the CALABARZON region and beyond.
- Batangas and Cebu are popular locations for private residential beach lots, which can be later turned into vacation homes or rentals.
- Palawan ranked first in the most searched locations for beach lots for sale on KB Realty Group. The province is an international tourism hotspot, making it more attractive for investors planning to operate businesses in the hospitality sector.
- Provinces with surf towns, such as Bohol and Surigao del Norte, were among the most viewed locations for beach lots, attracting vacationers and remote workers.
- Metro Manila was the most searched location for commercial lots on KB Realty Group. Other most viewed provinces were located in the periphery of the metro. Commercial lots in CALABARZON and Pampanga are suitable for warehousing, truck parking, and manufacturing.
- Similar to Metro Manila, Cebu is a commercial powerhouse. Demand for commercial lots in this area is potentially due to the incentives given to locators and the presence of an international airport.
