Sustained OFW, local investor demand to drive Iloilo condo market

Bright prospects are seen for Iloilo City’s condominium market, driven by the interest from the Overseas Filipino Worker (OFW) and local investor markets.

In a report, Colliers Philippines said Iloilo City’s condominium stock reached 4,065 units in the first half of the year, eight percent higher than the 3,777 units in the same period last year.

“Developers continue to launch and deliver projects on time as they see a sustained demand from investors and OFWS,”Colliers said.

It added that about 1,486 condominium units per year are expected to be completed from 2021 to 2023.

This is more than double the annual completion of 649 units from 2017 to 2019.

Colliers said that bulk of the new supply from 2021 to 2023 will likely come from the Iloilo Business Park (IBP) as well as SM Development Corp. (SMDC)’s residential developments.

“These areas are likely to account for nearly 80 percent of the new supply during the period,”Colliers said.

Among the projects due to be completed are Saint Honore, Saint Dominique, Style Residences, Vista Land’s The Altaverde COHO and Ayala Land’s Avida Towers Iloilo.

In terms of take up, Colliers reported that about 477 units were sold in Iloilo City’s condominium market in the first half of the year, lower than the 973 units sold in the first half of last year.

It added that the mid-income segment accounted for 93 percent of the total take up in the first half of the year.

Moreover, Colliers said that the rising demand for office space in Iloilo has also led to sustained take-up for condominium units especially in Mandurriao.

“Colliers believes that demand from this segment will likely continue driving residential demand beyond 2021 which should be supported by the rebound in regional economic growth, increase in OFW deployment, and the successful implementation of the government’s COVID-19 inoculation program,”the property services firm said.

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