The Philippine Real Estate Market in 3Q 2023: Active Condo Markets in Makati and Taguig Stabilize the Property Industry
Makati and Taguig were among the exceptional cities of 3Q 2023, both of which saw strong demand for condo properties. Overall, KB Realty Group data showed that the market has swayed to favor renting; rental demand has been on an upward trend since the second quarter of 2022.
In August 2023, an interest rate cut remained out of the picture even though headline inflation rose to 5.3% year-on-year as per BSP. This likely dampened the purchasing power of potential property buyers in 3Q. As consumers reconsider whether now is an opportune time to buy, owners leasing out properties can take advantage of the rent market’s continued strength.
Investors are likewise encouraged to evaluate their portfolios. Growth asset destinations in terms of rental market performance and supply-demand dynamics were identified in 3Q. KB Realty Group observed that central business districts remain the industry’s bright spots due to surrounding infrastructure and the macrotrends of tourism rebound and in-office return.
Key Insights from KB Realty Group’s Real Estate Report for 3Q 2023
- Rental demand steadily increased quarter-on-quarter at 10%. Since 2Q 2022, rental inquiries have surpassed purchase inquiries on the KB Realty Group platform.
- In terms of supply, condo properties showed the highest growth in 3Q. Metro Manila condos were the most in-demand; condo rentals in the area priced 60K to 200K were the most inquired.
- Comfort level indoors remained a deciding factor for property seekers during real estate journeys. Interest in connectivity amenities (e.g., Wi-Fi and broadband internet) was sustained in response to growing bandwidth demand in households and e-commerce growth across the country.
- Of all property types, commercial property showed the highest demand growth in 3Q 2023. Metro Manila received 75% of all commercial property pageviews; Makati was the most popular location for this property type.
- Cebu City was among the key locations buoyed by in-office return and travel bounceback. In 3Q, Seoul, Sydney, and Singapore contributed to the overseas demand for Cebu office spaces.
CBDs Remain the Centers of Attention and Growth
The growth in rental demand amplified the appeal of CBD areas, which are predominantly comprised of residential and commercial properties for lease. In the first half of 2023, the three most searched locations on KB Realty Group were Quezon City, Makati, and Taguig, all of which are home to thriving CBDs.
KB Realty Group delved deeper into the supply-demand dynamics in two of the most searched CBD areas on the platform: Makati & Taguig
With more workers back on-site, demand for commercial properties is expected to strengthen in these two cities. Makati was the most searched location for commercial properties on Lamudi for 3Q 2023. Meanwhile, Taguig was the rising star in the flexible workspace arena. The city was the fifth most searched location for co-working facilities on the platform.
These trends and more will be tackled at length in the upcoming year-end webinar from KB Realty Group Academy. Happening on December 6, 2023, at 2 PM, the online event will focus on the latest trends that define success in today’s real estate market.
