Prospective homebuyers in Makati should consider other places in Metro Manila, as the price of prime property in the city could increase by up to 26% in the third quarter of 2019, according to an industry forecast.
For instance, a condo for sale in Alabang, Muntinlupa City may be a good alternative to the sky-high prices in Makati. As of the second quarter of this year, real estate prices for Grade A properties cost P695,000 per square meter based on Colliers data. Even renting a home or condo unit in the city is not a cost-efficient alternative either, due to the high rates particularly on the central business district.
Future Growth of Residential Property Values
If you have the money to spare, then buying a luxury condo in the Makati CBD offers the best chances of acquiring a high yield. The reality, however, involves only a few individuals who are able to take advantage of this. The better choice for most people would be to acquire real estate in another city where prices are more affordable, yet offer the same amenities found in Makati properties.
Even if you plan to buy real estate in a nearby city such as Taguig, the price remains expensive. For instance, the average cost of a prime property in Fort Bonifacio costs P586,000 per square meter. In Manila’s Bay Area, the price is currently much lower ranging between P220,000 and P290,000 per square meter for pre-selling projects. But this may soon change in the next three years, as growing demand from foreign nationals continues to propel the area’s market.
Manila’s Property Market
Colliers expects the Bay Area’s property market to be on par with Makati in terms of completed condo units. By 2021, Makati will only have 28,700 completed units compared to 29,500 in the Bay Area. Much of the expected increase stems from the rising demand from Philippine Offshore Gaming Operators, or POGOs.
Employees from these gaming companies look for available residences near their place of work. Chinese nationals make up a majority of them, and their preferred locations include Manila, Makati, and Fort Bonifacio.
Subway Infrastructure Development
The P350 billion planned subway system will serve as another reason for the expected increase in prices not only in Makati, but also in other parts of Metro Manila. This means that buying properties close to the subway’s terminals will be more expensive than it already is, particularly if you wish to live in Makati’s CBD area.
On the other hand, the good news involves more transportation links for moving around the metro. Those who live in Muntinlupa could have another option to reach their place of work in either Manila, Makati, or Taguig.
There’s no doubt that Makati remains the premier place to live in Metro Manila with the staggering prices, so you should set your sights elsewhere when planning to buy your own house or condo. How much are you willing to pay for a property that’s close to your place of work or business?