MANILA, Philippines — After posting double-digit growth in the first quarter, prices of prime residential property in Metro Manila are expected to stabilize amid the coronavirus pandemic, according to real estate consultancy firm Santos Knight Frank.
Jan Custodio, senior director for research and consultancy at Santos Knight Frank, said in an email prices of prime residential property are expected to remain steady.
“Developers still remain confident that they can hold out at this price due to the quality and value of their projects,” he said.
He said developers usually set aside some units which they can put on hold for a long period time for some of their targeted buyers.
As for buyers, he said those who have already purchased are unlikely to sell their property as most of them are not in dire need of cash.
“They may consider selling if the offer is too good to refuse,” he said.
Manila topped Knight Frank’s Prime Global Cities Index for the first quarter as it posted the strongest growth in luxury residential property prices.
Released earlier this month, the index showed Manila placed first in the list of 46 cities as it registered a 15.3 percent increase in luxury residential property prices in the first quarter from the same period last year.
Compared to the previous quarter or the last quarter of 2019, prices in Manila went up by 10.2 percent in the first quarter.
Custodio said selling prices for the prime residential property in Metro Manila were taken just before the government imposed the enhanced community quarantine.
During that time, he said prices were still following their normal trajectory of around 10 percent per annum.
“Most of the prime residential properties launched in 2019 have been sold out, which in a way sets the stage for the price increase given the strong demand,” he said.
He said those actively selling prime residential properties in the first quarter were the beneficiaries as they capitalized on those who missed out in acquiring property last year, and on those who wanted to continue acquiring.
“This would indicate that prime residential property here in the Philippines is still a safe investment as it provides value for money. Most likely, those who have invested in this segment are highly liquid and seized this opportunity to acquire,” he said.
The Philippine Star - May 26, 2020