While the luxury residential market is once again taking center stage in Metro Manila – the demand for which is partly driven by an affluent and discerning market – Colliers has been seeing this trend in key residential hubs outside of the National Capital Region, with some of the most expensive projects identified in master-planned developments in Pampanga, Bulacan, Cebu, Davao, Bacolod, and Iloilo. In our view, average condominium prices in these areas will only increase moving forward.

The Philippine economy is finally rebounding after a severe contraction in 2020. Colliers believes that this expansion is likely to spur growth in economic centers outside of Metro Manila, which should likely guide property firms’ development plans. The growing acceptance of condominium living, the attractiveness of condo properties as a hedge against inflation, and the rising purchasing power of investors have been compelling property firms to launch luxury condominium projects outside Metro Manila.

While the luxury residential segment is once again taking center stage in Metro Manila – the demand for which is partly driven by an affluent and discerning market – Colliers has been seeing this trend in key residential hubs outside of the National Capital Region, with some of the most expensive projects located in master-planned developments in Pampanga, Bulacan, Cebu, Davao, Bacolod, and Iloilo. Condominium prices in these locations now range from PHP185,000 to PHP262,000 (USD3,400 to USD4,800) per square meter, Colliers data show.

In our view, average condominium prices in these areas will only increase moving forward due to the growing acceptance of condominium living outside Metro Manila and the rising purchasing power of investors and end-users in these locations. According to Joey Roi Bondoc, Director of Research | Colliers: “[We project] the attractiveness of luxury and ultra-luxury residential projects sustaining pace and we see this trend even outside of Metro Manila. Offering luxury condominium units in key areas outside of the capital region will be more pronounced beyond 2023 and we see an aggressive differentiation among property firms’ projects moving forward.”

Furthermore, Colliers projects the development of more integrated communities as national property firms, as well as foreign developers, look for homegrown developers with sizable landbank in provincial locations that they can partner with. This development route should further be facilitated by a continuously improving infrastructure backbone across the country.

Joey Roi Bondoc
Colliers
Director - Research