The luxury and high-end residential market continues to reap the benefits of the country’s sound and sustained macroeconomic fundamentals as investment buying activities became more prominent. The increasing demand for high-end condominiums emanates from foreign investors who acquire large number of units with the intention of leasing these out to local and international professionals, according to leading real estate service and workplace solutions advisor Santos Knight Frank.
Of the 34,143 high-end residential units floated in the market, 77% have already been purchased. While demand is driven by foreign investors, Santos Knight Frank noted that the low interest rate environment, flexible payment schemes and the weaker peso also attracted affluent end-users to acquire properties. Indicative selling price per square meter for high-end residential units currently ranges from PHP120,000 to PHP185,000.
“The luxury and high-end residential markets are set to grow as interest from foreign investors, high net worth individuals and developers continues to increase. Investors from China, Japan, South Korea, Singapore, Indonesia, Hong Kong and Malaysia have expressed interest in buying residential and office condominiums,” said Rick Santos, Chairman and CEO of Santos Knight Frank.
Santos Knight Frank is part of the Knight Frank network, which operates from more than 400 offices in 60 countries across the globe – this includes a strategically important partnership with Newmark Knight Frank (including the market-leading West coast and Silicon Valley operations of Newmark Cornish & Carey) in the United States. Knight Frank is the largest privately owned global real estate consultancy and the world’s No. 1 advisor in global residential and commercial properties.
The Metro Manila luxury and high-end residential market remains concentrated in the country’s leading central business districts, Makati and Bonifacio Global City.
Over the past years, the market has largely been underserved as developers focused on scalability. However today, the market is seeing an increase in the number of properties, with 10 luxury residential projects in the pre-selling and construction stage with an overall absorption rate of 86%. Target completions are in the next two to four years with indicative selling prices for luxury residential properties starting at around PHP180,000 up to PHP350,000 per square meter.
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