Philippines Housing Update

Patrick Chambers
2 min read

The economic backdrop is resilient and construction activity high

As the Philippines steadily returns to relative normality, many housing tailwinds are appearing. 

 

Various national property developers have shown promising financial results in the first half of 2021. Cebu Landmasters Inc. (CLI) have performed particularly strongly, with first-half income increasing by 66% year-on-year, from PHP792 million to PHP1.32 billion, aided by high revenue growth in its real estate sales group. The company also reported impressive construction activity: full swing on sites in Cebu, Dumaguete and Bohol, with a variety of others at 90% capacity and an overall average of 97%. 

 

Company CEO Jose Soberano III commented: "Housing has proven to be resilient and sustainable since it is now, more than ever, considered a basic need especially with the extended pandemic.” 

 

This activity is thriving in the context of a low interest rate environment and tax policies which facilitate mid-range home buyers. These conditions should be further improved by the global COVID-19 recovery and the return of pre-pandemic tourism levels. 

 

Image: Luzon Island

 

Rental demand continues to grow

The rental market across the Philippines has witnessed significant activity levels. Compared to the same period in 2020, the second quarter of 2021 was one of surging market appetite. 

 

According to data aggregated by online real estate marketplace Lamudi, the share of leads for rental properties in the PHP200,000 to P500,000 in Luzon (outside Metro Manila) and Visayas saw significant increases, with Luzon’s in the double digits. There was also a 15% increase in the affordable condominium rental market (roughly P5,000 to P15,000) compared to the first quarter of 2021. 

 

Locations traditionally best-suited to those on vacation and those seeking access to nature were among the five most-searched cities: Cebu City, Baguio, Tagaytay, Antipolo and Quezon City. 

There was also sizable interest from rental seekers in Siargao, Bohol, Boracay and Zambales, particularly in the PHP5,000 to PHP30,000 range.

Demand has in fact been so hot that Lamudi have offered property brokers the opportunity to post unlimited listings on the platform until the end of October 2021.

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