From bay area to BGC, central business districts remain attractive

The country may be grappling with the COVID-19 but real estate remains competitive and property purchases in central business districts (CBDs) are increasing.

In a study released by property consulting firm Colliers Philippines for the second quarter of 2021, it said that recovery in residential take up is expected in 2022 “on the back of a rebound in office leasing; macroeconomic recovery; sustained remittances from Filipinos working abroad; competitive mortgage rates; and a pickup in business and consumer sentiment.”

For property developers, the foundation remains strong.

“This is because homes remain a basic human need. And while the pandemic may have challenged the financial capacity and purchasing power of a lot of people, there are still those who are determined to look for homes for various practical reasons, be it for convenience, safety, health and for long-term investment,” said Federal Land Sales group head Margarita Saenz-Resurreccion.

“And our role is to continuously improve and innovate our offerings to adapt to the constant changes in the needs of our stakeholders,” she added. 

Central business districts

On top of this projection, real estate purchases in CBDs have been increasing.

In the first half of 2021, for instance, property shopping portal Lamudi said properties in CBDs that are priced P6 million and above, continue to attract demand.

Federal Land’s Grand Midori Ortigas in Pasig City

Likewise, page views on Lamudi’s digital platforms showed that listings in CBDs priced above P20 million experienced the biggest growth in the second half of 2020 up until January 2021.

Given this movement, Lamudi sees that the high demand for prime properties in CBDs for rent and for sale will maintain an upward trend in the second quarter of 2021.

This is because people are realizing the benefits of living in communities, where residents can easily access essential needs and receive support from the community during trying times.

CBDs are highly suitable for young professionals and new home buyers looking for urban conveniences such as shorter commute time to and from workplaces, access to the marketplace, and opportunities for socialization with a diverse group of people, Colliers also said in its study.

Thus, Colliers encourages developers to start lining up projects in anticipation of a market rebound in 2022.

“We expect developers to continue launching more projects from these price segments. Colliers is already seeing more aggressive completions of residential units across Metro Manila, and we project a ramped-up launch of new projects beyond 2021,” it said.

Against this backdrop, Federal Land is all the more committed to providing dynamic communities with residential developments that are well-built, timeless, and situated in the CBD areas, said Saenz-Resurreccion.

“We continue to move forward with our projects and our vision of creating dynamic communities that aim to benefit the Filipino people who hope to achieve a better quality of life,” she said.

Federal Land, she added, would continue to reshape cities and skylines with an innovative approach to architecture and amenities for better living to benefit the growing needs of the present and future generations.

FLI’s ongoing projects include The Seasons Residences in Bonifacio Global City, The Grand Midori Ortigas in Ortigas Center, Mi Casa and Palm Beach West in Manila Bay Area, Pasay. These properties provide a myriad of attractive investment opportunities, crucial to stimulating economic growth in CBD areas.