A mix of local and foreign property investors are enticed by projects developed by local players with foreign companies, as pre-selling and secondary condominium markets in Metro Manila remains strong due to appreciation potential and a wider base of buyers following the influx of offshore gaming firms from China.
The joint venture projects between foreign and Philippine firms are among the more expensive in the market, with the total contract price (TCP) per unit ranging from P7.6 million (USD149,000) to P31 million (USD607,800).
Despite being classified as upscale and luxury, these projects have an average take-up rate of nearly 90% as of the second quarter of 2019.
Aside from the capital appreciation potential, investors and end-users are enticed by upscale facilities, innovative concierge services, and the advantage of being in a master-planned development.
According to Colliers International Research Philippines, local and foreign companies mutually benefit from joint venture projects. While foreign firms are enticed by high yields derived from Philippine projects, local developers gain by being vouched for by prominent foreign brands.
In the second quarter of 2019, it recorded the completion of 2,600 units, bringing the total completion to 6,300 units. Metro Manila’s condominium stock stood at 125,150. The said research forecasts condominium stock to reach 128,050 by the end of 2019, higher than the earlier forecast of 126,620 as three projects in Fort Bonifacio, Eastwood, and Makati CBD were completed ahead of schedule.
Colliers also said that capital values continue to increase with average prices of prime three-bedroom units in the secondary market in Makati CBD, Rockwell Center, and Fort Bonifacio ranging between P145,000 and P362,000 (USD2,800 and USD7,100) per sq. meter as of second quarter of 2019, increasing by an average of 3.7%.
“For overall Metro Manila, expect prices to increase by an annual average of 5.2% from 2019 to 2021, slower than the initial forecast of 6% as we factor in the new supply,” said Colliers.