Property consultant Colliers said Iloilo City is steadily rising as a new hotspot for residential development in the Philippines.
Colliers said despite market disruptions due to the coronavirus disease 2019 (COVID-91) pandemic, developers continue to line up new residential projects in Iloilo City.
“We see increased demand for condominiums with the rising business interest and commercial activities in Iloilo City. Investors looking to capitalize on the heightened commercial activity have been the main drivers of demand while end users, particularly overseas Filipinos, keep the demand for house and lot units afloat,” it said.
In the first half of the year, about 2021, 477 condominium units were sold in the city. While the figure was lower compared to the the 973 units sold in the first quarter of last year, Colliers said it expect take-up to recover in the next 12 months, mainly driven by demand from local investors and overseas Filipino workers (OFW).
“From 2021 to 2025, we expect the delivery of about 1,100 new units annually. We see the bulk of the new supply coming from the Iloilo Business Park and SMDC’s (SM Development Corp.) projects,” it said.
Colliers sees condominium prices rising by about 4 percent annually beyond 2021, from a 2.1 percent growth per year between 2018 and 2020.
The upcoming infrastructure projects such as the Panay-Negros-Guimaras Island Bridge and the expansion of Iloilo International Airport should stoke residential demand in the province, it said.
Colliers said it expects “a more aggressive” development of condominiums, especially from national players, beyond 2021.
