The Year of the Ox could bring in positive prospects for the property industry with experts saying the worst is over and there are now clear signs of recovery.
The Ox is a hardworking animal. Methodical too and they hate to fail. As the Lunar Year marks the turning of a new leaf, experts said the Year of the Ox ushers in a time of renewal and a time of renewed investing.
This could be good for the property sector, too.
It’s not a rose garden just yet but experts said property players and real estate buyers can look forward to a number of opportunities this year.
Land, condo
For one, demand for land is expected to grow this year, said Lamudi, an online real estate marketplace.
Foreclosed properties will likely post the highest uptick in the first half of the year compared to the same period last year. Condos, meanwhile, are projected to have the highest growth from the second half of 2020 to the second half of 2021, Lamudi said.
Apartments
For apartments, Lamudi said this asset class experienced the greatest growth in the number of listings from the first quarter to the last quarter of 2020. This may be in response to the growing number of property seekers looking for affordable housing solutions near the workplace, or investment opportunities.
“As residents in the metro gravitate toward rentals, this type of real estate presents a promising passive income source for investors,” it said.
Commercial
In terms of commercial properties, Lamudi said that Makati, Metro Manila’s financial district, is forecasted to see the highest growth in page views from first half of the year to the second half while Muntinlupa will likely see the biggest growth in demand for commercial properties from the first half of the year to the second half of the year, marking a demand shift South of Manila.
Lessors are advised to offer value-added services, including reinforced health safety measures and flexible spaces, to retain tenants rethinking their office footprint.
Infrastructure projects
We’ve all seen how infrastructure projects can greatly improve mobility.
For property players, these big-ticket infrastructure developments are important in unlocking land values, Lamudi said.
“The demand for commercial real estate in provincial cities with technoparks can serve as a guide to investors considering property investment away from the densely populated capital region. Owners of real estate in popular provincial cities may consider holding on to their property to gain from its value appreciation in the future,” Lamudi said.
Business districts
The COVID-19 pandemic has reaffirmed the importance of cities with central business districts.
“Even with the new normal of work-from-home, several companies have adopted split operations or staggered schedules, having a portion of the workforce in the office, while others at home, on alternate periods. For this reason, proximity to the workplace will still be the primary consideration for property seekers,” Lamudi said.
Promising outlook
In all, Lamudi said the property sector is indeed well on its way to recovery as economic factors and investor attitude improve.
The number of listings on the Lamudi platform is expected to remain stable in the year ahead. Several real estate developers have introduced new projects in the market, while brokers and agents are gradually becoming used to the norm of using online platforms to advertise properties under the new normal.
In terms of top-listed real estate types, apartments recorded the highest growth in 2020, registering a 33.76 percent hike from the first to the fourth quarter. The next is land, posting a 26.29 percent increase. Condos climbed 21.86 percent in the same period.
It’s likely that the increase in supply in the property market will come from locations where construction of national infrastructure projects are planned. The Southern and Central Luzon regions are among these hot spots, Lamudi said.
In terms of development types, mixed-use estates will likely see a surge in supply in response to the new normal needs of modern property seekers, it added.
“Considering the market behavior on Lamudi in 2020, there seems to be a promising outlook that the general demand for residential and commercial real estate in the country will bounce back this year. Even then, there’s a lot of work to do, especially in making property seekers confident and comfortable in engaging in transactions that largely involve digital platforms,” it said.
Some bright spots that would help include mass vaccination in 2021 and improvement in market sentiment.
But in order to seize these opportunities, it’s necessary for property players to know where the industry is headed.
I wish every property player—big and small, new and old—as well as those in aligned industries a better year ahead!
