The Philippines records a housing production ranging from 168,000 to 190,000 a year in the last five years. With low production comes a projection that predicts housing backlog to reach 7.67 million by 2022. This is part of the reason low-cost housing remains a big driver in the growing real estate industry.
Cavite Properties, an online source on homebuying, knows that residents look for housing that offers convenience and efficiency. With the growing demand for residences that come with both factors, find out why low-cost housing remains prevalent in the industry.
Affordability as a Major Key Player
Location, location, and location — this is the one constant reminder about real estate. The number of players in the industry, however, makes affordability stand out among all the other considerations for buyers. Residential condominiums still have a strong demand because up to now, the concentration of businesses in Manila remains.
Developers will see movement with house-and-lot packages worth P2.5 million to P3.5 million due to their lower monthly amortization. With more manageable monthly payments, buyers can allocate their finances for other needs and expenses.
Demand for Residences in the Metro Remains
Despite the heavy and worsening traffic congestion in Metro Manila, more people still prefer to stay in the big and busy city. The demand for residences in the National Capital Region (NCR) remains on a high. Residential townhouses and condominiums remain in-demand amid the scarcity of land in the region.
The influx of employees choosing to live in homes near their offices maintained this demand for residences. These people would rather walk to work to avoid the heavy traffic congestion in the city. They prefer to live in condominium units within the central business districts (CBDs) for the convenience.
Major Developers Focus on Low-Cost Housing
Major developers now focus on the low-cost and socialized housing segment, so expect more projects of this nature. Some of the developers may even minimize the development of luxury and high-end projects as they dabble in the low-cost housing segment.
More residential condominiums might come to answer the growing demand for these types of developments. As the number of employees moving to the bustling city, more developers would want to grab this opportunity at hand.
As housing production falls short of the demand, low-cost properties may help meet the needs of a growing city. With enough developers catching up to fill the need, the housing backlog may remain a mere projection.