3 Emerging Cities for Condos
Davao, Iloilo, and Angeles in Pampanga have been identified as emerging cities for condominiums by online property search platform Lamudi.
Lamudi based the data on property seekers who use its platform for the past two and a half years.
In its Digital Property Seekers Series, property firms are expected to venture into developing residential condos and mixed-use townships in these so-called emerging cities because of the increasing demand from end-user buyers. These include local residents, property seekers from other parts of the archipelago, and even those from abroad. This, on top of the government’s plan to decongest Metro Manila by stimulating business activities in the countryside, can propel land values in areas to spike up.
Lamudi said its data on supply and demand showed that Davao, Iloilo, and Angeles in Pampanga have been enjoying a steady interest momentum among property seekers who are looking for residential condos.
It said the increase of residential condo units being built in Davao, Iloilo, and Pampanga is expected to rise as BPO firms disperse outside the traditional central business districts in favor of new ones.
Lamudi said most of these property seekers in these cities belong to the 25-to-34-year-old category, often referred to as millennials.
Although females who search for residential condos in Davao, Iloilo, and Pampanga outnumber their male counterparts, male users, nonetheless, constitute a sizable share among those who have inquired and expressed interest in condo units in the aforementioned cities.
It is also worth noting that property seekers for condos in the said cities are not limited to locals —there are also property seekers based in Metro Manila, in other nearby urban areas, and even outside the country.
Based on data provided by Lamudi, there was an overall steady increase in the number of residential condo units being built by property developers from June 2016 up to the fourth quarter of 2018 in Davao, Iloilo, and Pampanga. This shows a significant commitment from property development firms to increase the number of residential condo units in those cities.
In Davao, there was a steady increase in terms of the supply of residential condo units during the two year-period. The city started with an 85 percent increase in the supply of residential condo in the last half of 2016. Although the residential condo supply slowed down during the first half of 2017, this steadily picked up in the second half of that year. The presence of an international airport and other support services such as reputable academic institutions make it attractive, not just to BPO firms, but among those who plan to reside there for good.
In the case of Iloilo during the same two-year period, it was only after the first half of 2018 that the city saw a spike in the supply of residential condo units. Lamudi saw that there was a decrease in supply during 2016 but it slowly picked up until the first half of 2018. The supply also had a significant boost at 122 percent during the last quarter of this year. Iloilo’s strategic location in the Visayas and the presence of exceptional support services and recreational facilities continue to lure a number of people to relocate in Panay Island’s metropolitan hub.
Pampanga, specifically in the Clark-Mabalacat area, saw the biggest increase in residential condo supplies from July 2016 up to the fourth quarter of this year. Lamudi’s data revealed that even though there was a sudden drop in the increase of supply in June 2018, it remained steady at a minimum increase of 400 percent every six months. The former American Air Force base, which has retained most of its infrastructure in good conditions, is emerging as one of the most attractive alternatives among BPO firms to set up operations. Clark’s proximity to Metro Manila and the nearby provinces, as well as the presence of world-class support services such as an international airport, make it attractive to many would-be residents who are considering to relocate there.
Lamudi also noted a steady increase in demand for affordable dwelings as a number of property developers continue to build more and more residential condo units in those cities.
Lamudi data shows that the majority of those who have inquired or expressed interest in residential condo units in Davao, Iloilo, and Pampanga leans toward affordable properties, meaning condo units that have a price range of P5 million or less. Those who express interest for premium residential condo units, or those units whose price range is anywhere from P5 million to P10 million , are a far second, while those who are interested in luxury units with a price range of P10 million and more come in third.
Davao’s stable take-up average for condos is a high of 83 percent.
Lamudi’s data revealed that during the two-year period, 74 percent of those who used Lamudi’s site inquired on affordable residential condo units, followed by the 16.1 percent who looked into luxury condo properties. With a host of reputable academic institutions, the presence of an international airport, and other support services, industries to continue to infuse capital in Mindanao’s premier urban hub, as they hope to attract and maintain the city’s talented workforce.
In Iloilo, Lamudi said majority of the property seekers are interested in affordable affordable residential at condo units in the city 85.3 percent, followed by premium and luxe.
In Pampanga, 70 percent have inquired on affordable residential condo units, while 63 percent have expressed interest in them. Meanwhile, 11 percent have inquired on condo units under the premium category, although about 26 percent have expressed their interest.
Tags: Property Developers Condominium
