PRICES of high-end residential condominiums in key business districts soared to all-time highs last year, with units in Bonifacio Global City commanding as much as P300,000 per square meter (sq.m.), according to a property consultant.
Leechiu Property Consultants (LPC) said luxury condominium units in BGC start at P159,125 per sq.m. and go for as much as P302,588 per sq.m.
Residential units in Makati City have the second highest rates, ranging between P164,600 to P294,827 per sq.m.
“There’s so much liquidity in the market that it’s pushing the prices of these properties,” LPC Chief Executive Officer David Leechiu said in a press briefing in Makati on Monday.
LPC cited some high-end condominiums that have appreciated in value since their launch. Ayala Land, Inc.’s 12-hectare development called One Serendra in BGC, for instance, has doubled its value to P220,000 per sq.m. from P108,000 per sq.m. when it was unveiled in 2008.
Arthaland Corp.’s Arya Residences, also in BGC, is now valued at P220,000 per sq.m. from just P83,000 when it was launched in 2009.
Mr. Leechiu noted the surge in prices may also be attributed to the number of foreign investors who came into the market last year, snapping up properties mostly for investment purposes.
“Last year was the bulk of the foreign investment in the Philippines in terms of property. The mainland Chinese are buying everywhere, as far as Bulacan. They’re buying condos like crazy… The reason why they’re doing this is because Manila reminds them of Shanghai, Beijing 25 years ago,” Mr. Leechiu said.
Condominiums in the Bay Area in Pasay City have also become attractive for investors due to the growing presence of Philippine Offshore Gaming Operators (POGOs).
“Foreigners rent it out to the POGO companies,” Mr. Leechiu said, citing how POGOs with around 50,000 employees would need at least 12,500 units.
“And that’s in addition to the domestic demand,” he added.
At the same time, LPC also reported all-time high prices for luxury lots in the country.
Lots in Dasmariñas Village in Makati City, for example, are now valued at P374,000 per sq.m. With the smallest cut of around 700 sq.m. sold in the gated subdivision, the minimum spend of a buyer for a single lot could go as high as P261 million. This is 316% higher than the price of P70,000 per sq.m. in 2010.
Prices of lots in Forbes Park in Makati City, meanwhile, shot up by 275%, or P300,000 per sq.m. from just P65,000 per sq.m. six years ago.
“The supply will keep driving prices up. As the economy keeps expanding, this supply will become a smaller proportion of affordability, that’s why it will keep going up,” Mr. Leechiu said. — Arra B. Francia