By Keren Concepcion G. Valmonte,  Reporter

THE UPSCALE and luxury residential property markets are expected to remain resilient in the coming year, property services firms said.

Demand for homes outside Metro Manila will also likely remain strong as the government continues to ramp up infrastructure projects and many companies maintain work-from-home arrangements amid the pandemic.

KMC Savills, Inc. Co-Founder and Managing Partner Michael McCullough is expecting a slow recovery for the property industry next year. Residential sales may continue to be affected by the country’s coronavirus disease 2019 (COVID-19) situation, and developments in the office sector.

“We anticipate the uneven performance of the residential market to continue and recover in tandem with the office sector,” JLL Philippines Head of Research and Consulting Janlo C. de los Reyes said in an e-mail on Dec. 7.

Meanwhile, Santos Knight Frank Residential Services Associate Director Marievie D. Gimena-Villanueva said the movements “will mainly rely on the intensity of quarantine protocols in the coming months.”   

“Mid-income and upscale residential units will continue to dictate launches and take-up of condominium units in Metro Manila,” Colliers Philippines Associate Director Joey Roi H. Bondoc told BusinessWorld in an e-mail on Dec. 6.   

KMC Savills’ Mr. McCullough said demand for luxury condominium units will “remain stable” next year as high net-worth individuals renovate units in the major central business districts (CBDs) on expectations of higher returns.   

“The mid (market) segment will start to return, but may lag behind the upper segments,” Mr. McCullough said in an e-mail on Dec. 15.   

Overall demand for the mid-market segment may be a tad weaker due to tighter disposable incomes and lower spending appetite on big-ticket items,” JLL Philippines’ Mr. De los Reyes said.

However, the mid-market segment is expected to respond with flexible payment terms and promotions to attract buyers.

“This will drive the general residential market as property buyers will capitalize on relatively lower price points and attractive payment terms,” Santos Knight Frank’s Ms. Gimena-Villanueva said.

Activity from the mid-market segment will be driven by the improving remittances from overseas Filipino workers.

Cash remittances in the first 10 months of the year reached $25.929 billion, rising by 5.3% from a year ago, data from the central bank showed.