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Condos in Makati have high resale value

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Kenneth Stern
RE/MAX Philippines Country Manager Kenneth M. Stern -- RE/MAX PHILIPPINES

CONDOMINIUM units by the country’s top developers and those located in prime locations continue to have high resale value, according to a global real estate brokerage.

Data from RE/MAX Philippines showed condo units by Arthaland Corp., Ayala Land Premier and Rockwell Land Corp. (showed the highest capital value appreciation since their launch dates.

Arya Residences, ArthaLand’s flagship project in Bonifacio Global City (BGC) in Taguig City, showed a 160% capital value growth to P215,000 per square meter (sq.m.) in 2017 from P83,000 per sq.m. in 2009

Ayala Land Premier’s One Serendra West Tower also saw its capital value rose 13% to P230,000 per sq.m. last year from P108,000 per sq.m. in 2008.

Similarly, capital values of condo units of ALP projects The Residences at Greenbelt and Park Terraces have surged.

Prices at The Residences at Greenbelt have gone up 112% to P225,000 per sq.m. in 2017 from P106,000 per sq.m. in 2003. On the other hand, Park Terraces saw a 50% jump in prices to P240,000 per sq.m. in 2017 from P160,000 per sq.m. in 2009.

Rockwell Land’s Edades Tower saw its capital value go up by 92% to P250,000 per sq.m. in 2017 from P130,000 per sq.m. in 2009.

RE/MAX Philippines Country Manager Kenneth M. Stern said the rising condo prices in Metro Manila is driven by the sustained strong demand.

“People want to be close in the city; traffic is getting pretty bad now. When you live far from where you work it becomes very difficult. So people want to live in condos near their work. But because of limited areas to build condos, that is driving the price up,” Mr. Stern told BusinessWorld.

He noted people who want to live close to the business districts will have to pay a premium.

“In the future, pricing will continue to rise. We don’t see any slowdown in terms of pricing,” he said.

RE/MAX data identified San Lorenzo and Rockwell Center as two areas where condo units have the highest resale value.

At Rockwell Center, condo units are resold at between P135,000 to P360,000 per sq.m., while resale prices of units in San Lorenzo are between P220,000 to P300,000 per sq.m.

“Both these locations embody what condo investors are looking for in their next investment purchases: prime location and proximity to the business district and commercial areas,” Mr. Stern said.

VILLAGES
For horizontal developments, the high demand and lack of supply are driving up prices of house-and-lots in Metro Manila, especially in Makati’s exclusive villages.

“We are seeing a lack of supply in villages. And the thing is you can’t build more [because] this is horizontal growth,” Mr. Stern said.

At present, the most expensive house-and-lots are located in Forbes Park with an average cost of P500 million per property, according to RE/MAX data.

Dasmariñas Village comes second with around P315 million, followed by Urdaneta and San Lorenzo with about P225 million and P120 milllion per property, respectively.

“We are seeing these prices rise dramatically every year, seeing 15 to 20% increase year on year on these house-and-lots in Metro Manila,” Mr. Stern said.

Despite the high prices, Mr. Stern said there remains strong demand for condos from foreign buyers. He noted 30% of all transactions closed by RE/MAX in 2017 involved foreign buyers who bought condos in Makati, while 23% bought units in Taguig. — Mark Louis F. Ferrolino