With the country’s growth looking to remain stable throughout 2017, there is little doubt that the real estate market will continue its upward trajectory
For a lot of Filipinos, buying a home is the ultimate dream. It is having a space that you own, and can call your own home.
Recent years have seen a boom in Filipinos purchasing real estate, driven by lower loan interest rates and construction boom in the residential real estate sector.
In 2014, 69 percent of Filipinos prefer renting a house over buying one. The study, conducted by Lamudi Philippines, also reported that those who did plan on buying a home—96 percent—were looking to buy property in Metro Manila.
In 2015, Lamudi reported that an increasing number of people in the 25-34 age range were looking into buying homes, and the proclivity to want to buy gets higher as they get older.
When It Becomes an Idea
Much of a person’s capability to purchase a house stems from having the finances to cover the down-payment and monthly loan amortization on the property. Other times, people invest in real estate even when they have zero cash because they really want a home to call their own.
With property prices in highly sought-after communities in the country increasing, one of the most viable options for people who wish to purchase homes is to buy pre-selling condos in soon-to-open mixed-use townships or in fringe areas outside Metro Manila.
Here’s where there is a divide between homebuyers. Those who are younger tend to prefer having access to the city, and thus, look for houses or condominium units that are within the city—with Quezon City and Makati topping the list at 27 and 20 percent, respectively.
While the volume of people looking for houses to buy increases as they age—around the 25–34 age range—they also begin to expand their searches to outside Metro Manila.
Many Metro Manila–based homebuyers who cannot afford the capital’s expensive real estate are looking at houses in the provinces of Cavite, Laguna, and Rizal.
One of the factors that influence the current real estate boom is the country’s massive housing backlog(estimated to be between 3 and 5.5 million housing units).
As the Philippines’ population has already crossed the 100 million mark, providing shelter to this many Filipinos is a huge challenge. As a result, townships, mixed-use communities, low-cost condominiums, and subdivisions have sprouted up in areas surrounding Metro Manila. However, more should be done in terms of housing affordability and increasing access to financing.
It does not look like this trend will stop anytime soon. Real estate developers have started to look further outside Metro Manila for their next big projects. Given this overall optimistic sentiment, those who want to buy property should be able to do so without stretching themselves too thin.
With the country’s growth looking to remain stable throughout 2017, there is little doubt that the real estate market will continue its upward trajectory. It is expected that more investors are planning to come in as the demand for living space rises, and this creates a continuous effect of creating jobs that contribute to overall spending power for those who want to buy a house.
This article was originally posted by Lamudi Philippines