Property values in Metro Manila’s central business districts has held steady in 2023. This conclusion was made by Leechiu Property Consultants Inc. (LPC), which reported that a commercial lot in the center of Makati was sold for over P1.5 million per sq. m. <\/p>\n\n\n\n
Another landmark deal was in Legazpi Village, which involved a transaction worth P1 million per sq. m. In the southern business district, Filinvest City posted a 15% year-on-year increase in transaction values in 2023. Meanwhile, share prices in golf and country clubs outside Metro Manila showed high double to triple-digit growth. Valley Golf and Country Club in Rizal grew by 173% outside Metro Manila while Manila Golf share prices went up by 82%. <\/p>\n\n\n\n
On property real investment trusts (REITs), total portfolio coverage grew to 2.43 million sq. m. despite valuation compression from high-interest rates. In the residential market, 2023 marked the recovery of the condominium segment in Metro
Manila. Aided by buyer-friendly payment terms, a record of 40,555 units were sold in the condominium segment. Pre-sales in the condominium segment grew by 14%. New project launches surged by 66% compared to the previous year.<\/p>\n\n\n\n
Our View: <\/strong>The Philippine property market has demonstrated continued resilience in 2023. This is an excellent springboard for 2024 as its stability should be accompanied by a rebound in transaction volumes. The last three quarters showcased a stabilized pre-sales landscape, with a surge in launches during the first quarter of 2023. However, increased back outs prompted developers to gradually restrain launches to manage inventory, resulting in a 30% quarter-on-quarter decline in fourth-quarter launches. <\/p>\n\n\n\n Investors were cautious and it was reflected in diminished transactions. However, the market is anticipating that interest rate cuts in 2024 may contribute to an improvement in transaction volumes. The market is exhibiting a trajectory toward a more normalized real estate cycle, propelled by improved road infrastructure that should result to higher property values. Some growth drivers will be the continued
inflows from overseas Filipino workers’ (OFW) remittances and the growing interest in residential units outside the capital region.<\/p>\n\n\n\n