LRG expects residential market to grow

LOBIEN Realty Group (LRG) sees an increased importance for the residential market this year as the coronavirus disease 2019 (Covid-19) pandemic caused changes in work and school arrangements.

A condominium in Makati City. Lobien Realty Group believes condominiums will continue to be in demand, especially for those looking for a place to live near their workplace.

In a report last week, the group said it expects the real estate market to improve this year given the anticipated aggressive rollout of the Covid-19 vaccines.

LRG projects condominium developers to launch around 24,000 square meters (sqm) of residential units this year as take up is expected to surpass last year’s data at 36,000 sqm.
The firm said that condominium take-up last year exceeded supply as over 30,000 sqm of condominium space was bought.

This development is attributed to eased payment terms, which were extended by banks and developers.

Of the total take-up amount last year, LBG said 45 percent was from those priced between the P7 million to P15 million price range, followed by those above P15 million at 41 percent, between P3 million to P7 million at 11 percent and those priced below P3 million at 3 percent.

LRG said condominium units and dormitories located within the central business districts (CBDs) will continue to see a market, especially those employees that need to address public transportation concerns as quarantine measures are still in place, which limits public transportation.

The group likewise expects an increased demand for single detached homes and lots outside Metro Manila and mid-to-higher end or low-density condominium developments in CBDs.

More township developments are also foreseen, which are aimed at pandemic-proof work and residential arrangement.

Makati City continues to be the most expensive in terms of housing land value at P350,000 to P1 million/sqm, with Bonifacio Global City coming in second at P300,000 to P350,000/sqm.

Ortigas Center followed suit at P250,000/sqm to P280,000/sqm, Bay City at P230,000 to P280,000/sqm and Muntinlupa City/Alabang at P120,000 to P140,000/sqm.

This article first appeared on www.manilatimes.net