HEFTY discounts are the biggest incentive for buyers of condominium units, according to a study of property consultancy Colliers.
Colliers data showed a sizable 75,300 units of unsold inventory of condominium units in Metro Manila as of the third quarter, covering pre-selling and ready for occupancy (RFO).
Of the 75,300 remaining inventory, 27,200 are RFO valued at P154.4 billion.
Colliers said of the unsold inventory, 57 percent are in the mid-market segment, or those worth P3.6 million to P12 million per unit.
The property consultancy said it will take about 5.8 years to fully sell out all these unsold condominium units, about five times longer compared to the pre-pandemic period of 2017 to 2019 where remaining inventory life (RIL) ranged between 0.9 and 1.1 years.
“Developers should remain aggressive in offering innovative and attractive promos to re-capture residential demand. Some developers may opt to offer early and easy move-in promos or attractive rent-to-own schemes for their RFO units. For non-RFO units, developers may offer extended downpayment terms.
These promos should be highlighted especially for a mid-income client base wary of rising inflation and mortgage rates,” Colliers said in a report.
A random survey done by Colliers said the topmost consideration in buying a condominium is discounts on the total contract price, 57 percent.
Other top considerations for buying a condo are extended payment terms, 19 percent; early move-in promo, 13 percent; lower reservation fees, 10 percent and; free furniture, 1 percent.
Colliers said prospective buyers would also look for developments that feature open/green spaces and smart home technologies. Proximity to places of work and malls is also valued.
“The pandemic has changed the way people live, work, and shop resulting in developers integrating new features into their projects to satisfy residents’ evolving preference In our view, residential developers in Metro Manila that provide upscale amenities, top-tier concierge services, and high quality after-sales services continue to remain popular amongst the experienced and affluent clients,” Colliers said.
It noted that over the past year, several developers have integrated more healthy and sustainable amenities into their newly-launched projects. Some have also incorporated unique features such as glamping nook, garden gazebo, sky promenades, and electric vehicle (EV) charging stations as hyper-amenitized condominium developments become the norm.
“Developers should continue to innovate with their offerings especially as they try to capture demand from a client base still reeling from the impacts of elevated interest and mortgage rates. Developers should remain on the lookout for opportunities outside of Metro Manila given the still-subdued take-up in the capital region,” Colliers added.
