Condominium living continues to rise

Condos are redefining modern living and becoming the new favorite among Filipinos living in the urban jungles of Metro Manila. Much of the reason can be attributed to the rise of mixed-use developments that offer a balanced lifestyle of live, work and play that fits well with the demands of today’s daily lives.

As urban centers become increasingly crowded and land prices rise, developers are responding to the increasing demand for residential spaces that provide not just a place to live, but a lifestyle. This trend is especially evident in major cities like Metro Manila, Cebu and Davao, where high-rise apartment buildings are becoming a prominent part of the skyline.

Leading real estate developers are developing condo projects in townships and offering a complete package of shops, hospitals, churches and offices close to home. Furthermore, these developers are taking the game to the next level with resort-themed smart homes and eco-friendly buildings, offering high-quality living spaces in vibrant cities.

According to professional services firm Colliers, a further 9,620 new condominium units will be completed in 2024, marking the largest completion in five years. About two-thirds of these new units will be in Metro Manila’s Bay Area.

“Given the completion of a significant number of new apartments in Metro Manila this year, Colliers encourages developers to continue offering attractive leasing promotions, especially for local workers returning to the traditional office setup,” Colliers advised in their report. Real Estate Market Report in February.

Interestingly, this is also accompanied by an increase in interest in leisure apartments outside the metro.

“An increasing number of Filipinos showed increased interest in acquiring second homes, especially in residential leisure apartments in Metro Luzon,” real estate experts Santos Knight Frank wrote in their report. Philippine Real Estate Outlook for 2024.

“Tagaytay emerged as the preferred location for second homes, with Pampanga and Batangas (Laiya and Nasugbu) lagging behind. In April 2023, San Juan, Batangas had 689,000 domestic travelers, Nasugbu 268,022 and Tagaytay welcomed 436,508 tourists. These figures highlight the booming tourism and widespread appeal, but residential sales figures show clearer demand, with 42% of units sold in Metro Luzon falling under the residential-leisure category.”

Meanwhile, Pampanga leads in Metro Luzon with a sales price of P126,374/sqm, followed by Tagaytay with P122,500/sqm. and Laguna at P117,269/sqm. Bulacan, Cavite and Laguna exhibit the lowest average unit prices: P3.7 million for Laguna, P2.9 million for Bulacan and P2.8 million for Cavite.

“The residential real estate sector in the Philippines has shown consistent growth in recent years, and all signs point to further progress in 2024. This growth is attributed to several key factors, including the ongoing process of gentrification in nearby provinces, a recalibrated transportation system and the turnover of new infrastructures, which will significantly improve interconnectivity between provinces and cities,” said Anjo Sumait, manager of Residential Services at Santos Knight Frank, in the report.

“The idea of ​​gentrification in nearby counties is impacting the real estate landscape and providing opportunities for development and investment outside of traditional urban centers. This offers a promising prospect for both developers and potential homeowners, as it offers the potential for new urban centers to emerge, spreading economic activity and real estate development.”

Convenience first

One of the main reasons for the surge in condominium living is the convenience it offers. Modern apartment buildings, especially those designed as a mixed-use development, are designed with the needs of city residents in mind and offer amenities that make daily life more comfortable and efficient. These include fitness centers, swimming pools, co-working spaces and even retail shops within the building, offering an independent lifestyle, all without the need for a commute.

Accessibility is another important factor driving the popularity of condominium living. The mixed-use platform is the most practical choice for real estate developers in Metro Manila, mainly due to several factors: the problems of traffic congestion, uneven transportation connections and facilities, excessive concentration of economic activity in traditional central business districts, and cutthroat competition for real estate.

Stand-alone residential developments or commercial activities have inherent disadvantages, especially if they are not connected to main roads or train stations. That’s why developers strategically build their projects in locations that are well connected to major arterial roads, business districts and transportation hubs. This proximity to key areas reduces daily travel time for residents, allowing them to spend more time on productive and recreational activities.

There is also the growing preference for homes that require minimal maintenance as more Filipinos enter the job market. Condominiums, often with their professional property management services, respond to this need by providing maintenance and security, allowing residents to focus on their careers and personal lives.

The pandemic obviously also played a role in this shift. According to management consultants McKinsey & Company, the hybrid lifestyle – one in which remote work and home working are basic models for many office jobs – is here to stay.

“When we look at neighborhoods that were heavily office-dominated, the first big impact is simply that there are fewer people living in those offices. That means fewer people in those streets, fewer people in the shops or anywhere else in the area. That, combined with the rise of online commerce, poses a major challenge for downtown retail spaces and public spaces in those office-intensive areas,” said McKinsey Senior Partner Jonathan Woetzel.

“The other obvious impact is residential use. Because people live closer to home, we see the demand for these homes increasing. And around those houses there is a small resurgence of retail. So we see shopping and trading patterns changing as people change.”

Mr Woetzel added that the mixed-use residential district is “alive and thriving” as people have generally retained innovations from the pandemic that have proven successful. “That’s a tribute to what people want: this idea of ​​a walkable, livable environment.”

Aditya Sanghvi, senior partner at McKinsey, said: “The neighborhoods that perform better are those that are pedestrian-friendly, have great green spaces and a mix of offices, retail and experiences. They are like an ecosystem of everything you want in your life, all in one place.”

As urbanization continues to accelerate, the demand for convenient, accessible and well-designed living spaces is expected to rise. Condominium living, with its myriad benefits, is well positioned to meet this demand and reshape the way Filipinos live in the urban jungle. — Bjorn Biel M. Beltran