Saturday, April 13, 2024

Property Market Insider: RLC Residences, Colliers reveals condo trends and insights in recent property preview

Property Market Insider: RLC Residences, Colliers reveals condo trends and insights in recent property preview

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IN PHOTO (Left to Right): RLC Residences Business Development and Design Head, AVP Stephanie Anne Go, Sales Group Head Mac Dang, Marketing Head and Chief Integration Officer Karen Cesario, Colliers Research Director Joey Bondoc, and Home Buddies Founder Frances Cabatuando at the brand’s Special Property Preview

In a recent property preview event, RLC Residences showcased its commitment to innovative design and sustainable living with an insightful discussion about real estate trends alongside Joey Bondoc, Research Director at Colliers International Philippines.


“We are proud to be at the forefront of the Philippine real estate market, offering innovative and sustainable living solutions to our customers,” says Karen Cesario, Marketing Head and Chief Integration Officer of RLC Residences. “Discussing with expert property consultants like Joey Bondoc allows us to stay ahead of market trends and provide Filipinos with the best possible options for their real estate investment needs.”


Considerations in property investment

In his talk, Bondoc shares four key considerations and intentions that should drive the condominium market. His list includes location, renting prospect, developer record, and price. 


According to Bondoc, buying a property in the right location is key and respondents of a Colliers study feel the same way as 62% prioritize proximity to offices, malls, and other amenities when buying a condo unit in Metro Manila. This trend is particularly evident in the success of RLC Residences’ SYNC N-Tower located in Pasig, which boasts 71% units sold to date. Accessible to Makati, Fort Bonifacio, Eastwood City, and Ortigas Center, SYNC has resonated with urban dwellers seeking a strategically located residence that complements their lifestyle.

Joey Bondoc, Research Director at Colliers International Philippines, during his presentation at RLC Residences’ Special Property Preview

Moreover, Bondoc emphasized thinking long-term and considering looking for properties that are projected to attract renters and occupants. In the same vein, a referenced Colliers study entails that 45% of respondents plan to use their upcoming property purchase for end-use while 55% intend to use it for investment. The return of expatriates can also be seen as a significant factor contributing to the demand for investment properties. For this specific niche, Woodsville Crest’s proximity to the airport makes it an ideal rental unit for expats and a smart investment opportunity for Filipinos. Woodsville Crest is RLC Residences’ nature-inspired development located in Merville, Parañaque, which is also accessible to CBDs like Makati and BGC. 


Third on his list, Bondoc advised the audience to put a prime value on developers’ track record when making investment decisions. This bodes well for RLC Residences as the brand brings in Robinsons Land’s three-decade legacy in the industry.  A strong track record instills confidence in stakeholders looking for reliable and reputable developers to invest their hard-earned money. This industry expertise is evident in the success of Sierra Valley Gardens, one of RLC Residences’ award-winning pre-selling developments located in Cainta, Rizal that has seen a remarkable appreciation rate of 47% since its launch date in 2020. The project has received multiple accolades locally and abroad for its features such as smart home-ready units, strategic location, and amenities for various pursuits.


Ticking off the first three considerations while also spending within your capability is the ideal real estate investment according to Bondoc. But more than the total contract price, affordability is also determined by the payment terms. He observed that developers have started to offer lower amortization rates partnered with extended payment terms beyond six to 18 months from the turnover date. 


Moreover, sustainability is also increasingly becoming a priority for condominium buyers. Forty percent (40%) of surveyed individuals in a Colliers study consider sustainable features as an important factor when making a purchase. One project that reflects this need is Woodsville Crest featuring vast green spaces and nature-inspired amenities. The development is set to adapt other environment-friendly features such as a rainwater harvesting system for non-potable requirements of the development, bike parking areas, and e-vehicle charging stations. 


Bondoc’s considerations give a sneak peek of the market’s priorities as they navigate the optimistic residential real estate landscape in the country. 


Factors supporting residential demand

Fortunately for budding investors, the Philippine economy is on a trajectory of growth creating a favorable environment for the real estate sector. Data from the Philippine Statistics Authority (PSA) showed that the Philippine economy expanded by 5.6% in 2023 and the 2024 growth forecast of multilateral lending firms and credit rating agencies is between 5.8% and 7.5%. This development is driven by various factors including increased remittances from overseas Filipino workers and heightened infrastructure spending. 


Regional economies are also experiencing improvement, with GDP growth per region ranging from 5.9% to 9.3% in 2022. Household spending, fueled by remittances from countries such as the United States, Singapore, and Saudi Arabia, has contributed to this growth. Inflation has also slowed down and the average mortgage rate has remained stable. Unemployment has also decreased, indicating a strengthening labor market.


Infrastructure spending is also seen as a priority for the Philippine government, with allotments increasing significantly from Php 406.59 billion in 2015 to Php 1.3 trillion in 2023. Projects such as the Estrella-Pantaleon Bridge, MRT-3 rehabilitation, NLEX-SLEX Connector, Pasig River Expressway, and the Metro Manila Subway are expected to further enhance connectivity within various cities across multiple regions, which would help and drive property appreciation in years to come.


Looking ahead, the residential demand is expected to be supported by the rise in OFW remittances, the return of expatriates, and the development of more integrated communities. Overall, the Philippine real estate market remains resilient, with strong fundamentals and a promising outlook for the future.


“The Philippine property market is unquestionably on the rebound, showing strong signs of recovery. We’re witnessing a glimmer of hope, or whatever you want to call it, at the end of the tunnel. The Philippine economy is undeniably on the upswing. Many are asking us, ‘When is the right time to invest?’ The answer is clear: the right time to invest is now,” Bondoc remarked. 


Individuals looking to invest in residential real estate can check out various RLC Residences condominium projects at