CEBU CITY — The Philippine government’s commitment to infrastructure development and economic growth is seen as a positive factor for the real estate and property market in the country that is expected to continue growing at a projected 5-15 percent increase in property prices by 2025.
Joey Roi Bondoc, research director of Colliers Philippines bared that growth opportunities outside Metro Manila are fueled by the positive impact of infrastructure projects on property values, citing the expansion of Cebu International Airport and the construction of the Metro Manila subway.
“Infrastructure projects, such as the expansion of Cebu International Airport and the construction of the Metro Manila subway, are expected to drive property prices up,” Bondoc added during the ASCEND! Real Estate Business Summit and Sales Kick-Off 2025 hosted by the Real Land Asia Realty & Development Corporation on January 14 at the Waterfront Cebu City Hotels & Casino.
Bondoc said that the Philippine government plans to allocate 5-6 percent of the national budget to infrastructure projects from 2025 to 2028, ensuring continued development. Infrastructure projects in Mindanao, Visayas, and Luzon are progressing, influencing the development strategies of property firms.
According to Bondoc, foreign hospitality brands are entering the market with projects in Southern Mindanao already sold out, indicating strong demand. Remittances from Filipinos working abroad have reached $37 billion and the Philippine Central Bank has reduced interest rates by 75 basis points, making mortgage rates lower and more affordable for entrepreneurs and residential buyers.
Bondoc stresses the importance of aligning infrastructure spending with other countries to attract foreign investors. Major infrastructure projects, such as the Cebu Bus Rapid Transit and the Metro Manila subway, are expected to be completed by 2025 and 2028, respectively, and these affect property value.
The Philippine property market continues to expand, driven by infrastructure projects, a young workforce, and a growing middle-income population. The call to action is to encourage everyone to participants and invest in the Philippine property market, highlighting the numerous opportunities and growth potential.
Land Asia Realty and Dev’t celebrates 33 years of excellence in real estate
Land Asia Realty and Development Corporation, a pioneer in the Philippine real estate industry is celebrating its 33 years in the real estate sector, cementing its position as a leader in driving professional growth, innovation, and ethical practices in the industry.
Since its establishment, Land Asia Realty has evolved from a small operation into an industry powerhouse with over 1,000 active agents and brokers and numerous local and international partnerships.
Ricardo Inting, Chairman and Founder of Land Asia Realty and Development Corporation expresses his honor in leading a team of professionals dedicated to providing exceptional service to clients.
Inting invites all his brokers and agents to stand up and sign up for the first menu of 2025, emphasizing the importance of future growth. “The Summit’s theme “ASCEND” focuses on uncovering real estate professionals and fostering innovation, aligning with the company’s vision of equipping agents with the necessary tools and knowledge,” Inting bared.
He encourages the participants from all over the country to listen and learned from the topics that include increasing housing demand, market opportunities, and navigating cognitive challenges.
Inting went on to share the company’s commitment to empower agents and brokers through continuous learning and professional development, with the goal to create not just successful professionals but also a friendly real estate community.
“We’re happy to see agents earning their first million because we believe in the company’s role to help people grow,” he said.
Inting bared that his company aims expansion and market reach and its opening of offices in Luzon, including Talisay, Laguna, and Cavite. The company has also expanded to the middle part of Luzon, including Bulacan, Pampanga, and Clark, with exciting partnerships with developers in the area.
The company’s inventory has grown to around 2 trillion pesos with new developments adding to it every month, handling marketing for over 200 developers and more than 1,000 projects, leveraging advanced technology and AI to streamline operations, Inting revealed.
“The Philippine property market is resilient and continues to expand. I encouraged all the participants here to follow the latest updates on the Philippine property market through social media platforms like LinkedIn, Facebook, Instagram, Twitter, and YouTube. The use of AI and advanced technology is seen as a key factor in the company’s success and growth in the real estate market,” Inting added.
Real estate/property market trends and preferences
According to Carlo Gabriel Simbajon, Supervising Economic Development Specialist, NEDA-Region VII that townhouses are very popular among property buyers at 90.3 percent while duplexes are only at three percent.
In his presentation, Simbajon mentioned that the highest demand is from the Calabar Zone, followed by the NCR and Central Luzon which is at 13 percent. Western Luzon at seven percent while Northern Luzon is at four percent in demand. The data provided covers the first half of 2024, showing a 15.7 percent contraction in real estate votes.
Joey Roi Bondoc of Colliers on the other hand said that real estate market performance is noted on condominium demands with new units increased by 30.2 percent while townhouses have seen a slight decrease, although still a significant market player, with a 76.7 percent drop in single-family homes. Attached houses are at 12 percent and duplexes are at 24 percent drop.
The market’s health is indicated by single-digit interest rates, which are still manageable despite inflation, Bondoc explained that the oversupply of units is a natural cycle and does not necessarily mean a market burst.
The residential price leadership has maintained an upward trend since 2016, with a GDP growth rate of 5-6 percent and an inflation rate of 3-4 percent.
“Compared to other countries like the US and Canada, the current market conditions are favorable. Sales positioning should consider generational expectations and buyer preferences,” Bondoc said.
The market is driven by discriminating tastes, indicating a higher level of sophistication among buyers and that understanding generational trends is crucial for market success.
According to Bondoc that more than 50 percent of primary home buyers are local, with around 30-40 percent coming from outside the country, highlighting the influx of retirees from China, which has affected the market dynamics.
“There is a shift in the market, with an average of 30-40 percent still being local buyers with the local OFWs now the primary buyers focusing on single properties,” Inting added.
Inting revealed that international buyers are facing challenges due to stricter rules and requirements but the international market is still significant, contributing 30-40 percent of the total buyers. The important thing is to understand the real estate market trends and the impact of global economic changes, Inting concluded. (Photos: MBCNewman)
