March 26, 2019 | 12:06 am | Business World

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PLANNING to get a luxury condominium anytime soon?

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Better snap it up quick, as surging demand for posh digs in central business districts is pushing prices higher and higher.

“Property prices all-time high and you see that from Bonifacio all the way to El Nido [Palawan],” David Leechiu, chief executive officer of Leechiu Property Consultants (LPC) noted during the company’s media briefing in Makati City on March 18.

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In general, Mr. Leechiu noted prices for the residential sector have risen 20% to 25% from 12 months ago.

As of first quarter of 2019, residential condominiums are commanding prices as high as P540,000 per square meter (sq.m.) in the case of Horizon Homes at Shangri-La at the Fort in Taguig, and P533,000 per sq.m. for The Estate Makati

Developed by Shang Properties, Horizon Homes is a collection of 98 luxury units within the Shangri-La at the Fort complex. The Estate Makati, on the other hand, is a ultra-luxury residential condo project being built by SM Development Corp. and Federal Land.

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Demand for these high-end condos is being driven not just by wealthy Filipinos, but also Chinese buyers and investors, according to Mr. Leechiu.

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Broken down, investors account for 35% of the demand, followed by professionals at 30%, overseas Filipino workers (OFW) at 20%, while foreigners at 15% of the demand.

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Of the foreign buyers, the Chinese market accounted for 35% of the demand.

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“There is a surge in Mainland Chinese buyers in the residential condominium sector and we anticipate for this to continue for the long term especially with rekindled ties between Philippines and China,” LPC said in its report.

Mr. Leechiu also noted that three property developers, namely DMCI Homes, Ayala Land, Inc. and SM Development Corp., have said that a chunk of their residential sales are attributed to Mainland Chinese buyers.

This trend is seen to continue this year pushing prices even higher.

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“It will just keep driving prices higher… We anticipate new records to be broken this year and next year,” Mr. Leechiu said.

But he believes the rising prices will not necessarily hurt local buyers.

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Read more: https://www.bworldonline.com/why-luxury-condo-prices-continue-to-soar-in-phl/

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