The government’s program to further improve infrastructure nationwide, along with people’s preference for less crowded spaces in the light of their Covid-18 pandemic experience, now fuel housing developments outside Metro Manila.
In a virtual briefing Monday, Leechiu Property Consultants research and consultancy director Roy Amado Golez said residential real estate prices in Laguna, Cavite, Pampanga, and Tarlac have risen, especially for housing projects catering to the high-end market.
Golez said prices of lots in Laguna, such as projects located along the South Luzon Expressway, have increased by around seven to 10 percent. Residential real estate projects in these areas have registered strong sales and developers are running out of inventory locations, he noted.
Land prices in Laguna for projects catering to the high-end segment alone, Golez said, have increased to around P50,000 per square meter from about P35,000/sqm two years ago, with some jumping by as much as 50%.
“And this is a product that we see will be more valuable in the subsequent years ahead. This trend is similar to what happened in the 1990s,” Golez added.
“The investments in infrastructure, as well as the pandemic situation, have made this happen. The perception of (a) healthier, more open, less crowded, household location has made it attractive for many buyers to move outwards of Metro Manila,” he said.
While the pandemic has affected people’s financial capacity, Golez said that in the case of the real estate sector, it is only the lower-end segment that was hit “because of loss of jobs in the service sector.”
He said property developers have continued to make better payment options that allow buyers belonging to the middle market to acquire properties easier, while investment and capital preservation drive the demand for the high-end market.
Golez said real estate investments in Laguna alone have increased by 200% to 300% already compared to those in Metro Manila.
“So what do you see in the near future? Definitely more of these products, especially as the infrastructure gets completed. We still have about 150 kilometers of infrastructure — roads, bridges, and rails that are to be built,” he said.
Golez said they expect more growth in the northern part of Metro Manila instead of the south due to the availability of more lands.