The Covid-19 pandemic has also affected the real estate industry on an unprecedented scale. While it remains resilient and optimistic, there has been a shift in the behavior of home buyers that are seen to remain in the new normal.
“According to Lamudi’s trend report Indicators of Growth: Where to Invest in 2021, property seekers started putting a premium on bigger floor spaces and open areas” (Why Communities Outside the Metro, 2021). This follows the idea that it is safer to avoid crowded places like Metro Manila and high-volume living spaces such as condominiums.
Because of the increase in the demand for real estate in communities outside Metro Manila, there has also been price growth on these properties.
In a report by the Bangko Sentral ng Pilipinas, there has been a 0.8 percent year-on-year increase in the last quarter of 2020 for residential real estate prices (RREPI). The residential costs in areas outside the capital region increased by 5.9 percent year-on-year. Meanwhile, prices in Metro Manila slumped by 4.8 percent, a decline for a second consecutive quarter (Preference for Areas Outside NCR, 2021).
This alone shows the shift in preferences of buyers – from city living to suburban real estate investing.
What can be the reasonable grounds for this shift?
The flexibility of the new normal. Since the new normal now permits people to work and study remotely, the increase in demand for real estate outside Metro Manila follows. Higher demand, then, makes prices also go up.
“In the 2020 trend report titled Hotspots Unwrapped: 2020’s Most Popular Locations, more than half of the most in-demand provincial cities were in the regions located near Metro Manila. These include Bacoor, Antipolo, Angeles, Dasmariñas, Imus, Calamba, and San Fernando, belonging to the Central and Southern Tagalog regions” (Preference for Areas Outside NCR, 2021).
Massive infrastructure projects in provinces and cities outside Metro Manila. Infrastructure developments are always a driver for the growth of real estate prices. Once the projects are done and the city or province has more transportation and lifestyle options, one can expect more expensive prices.
The LRT Extension projects, highways, and airports are seen to drive economic growth in the neighboring communities of Metro Manila, spiking up real estate values in those regions.
Will you still wait for more expensive prices before you invest in real estate? As we always say, waiting will just cost you more! Let us help you find the property of your dreams. Contact us at 0926 671 9445 or email us at dan@danielalleje.com. 📲
References
Preference for Areas Outside NCR Hike Real Estate Prices. (2021). In Lamudi. Retrieved from https://www.lamudi.com.ph/journal/preference-outside-ncr-hike-prices/
Uy, D. (2021). 5 Reasons To Invest In Property Outside Metro Manila. Retrieved from https://www.tripzilla.ph/reasons-property-outside-metro-manila/29640
Why Communities Outside the Metro Are Becoming a More Priced Investment During a Crisis. (2021). In Lamudi. Retrieved from https://www.lamudi.com.ph/journal/why-communities-outside-metro-priced-investment/