The Philippines is experiencing a rapid escalation in branded residences projects with an influx of overseas hospitality brands, and a wide spectrum of both urban and resort destinations across the massive archipelago.
This market maturation is awakening a sleeping giant.
Based on market research from C9 Hotelworks’ newly released Philippines Branded Residences Market Review, the current supply is set to double from 5,319 existing units and an incoming pipeline now standing at 5,559. A significant number of upcoming projects, tallying 43 percent are in Metro Manila
Moving past the nation’s capital, the most active destinations are Bohol, Boracay, Cebu, Davao, New Clark City, and Palawan.
One of the key drives outside of city areas is the post-COVID-19 shift in lifestyle choices bolstered by trends led by work-from-anywhere, quality of life, and larger living spaces.
Diving into the sector and what international brands are most active, the leading global groups are ACCOR, Marriott, Banyan Tree, and ASCOTT. Most of these are multi-brand offerings so they have a selection of options for developers.
Geopolitical events, early retirement by a huge greying population across the globe, as well as technology that allows work from anywhere has spurred a global migration trend.
Because of this, the profile of buyers of branded residences has also expanded beyond the traditional domestic and overseas Filipinos.
The ability of foreign property buyers to own 40 percent of units in condominiums under a freehold regime is a strong advantage over other Southeast Asian markets like Indonesia and Vietnam.
“We expect a strong influx of branded properties into the country over the next two to three years, given developers’ objective to seek premium in selling prices bolstered by a brand and diversification by hotel and resort developers to create mixed-use projects to drive early investment returns,” the research by C9 Hotelworks said.
C9 Hotelworks research shows a 105 percent increase in the pipeline, translating to an additional 5,599 units supplementing the current supply of 5,319 units.
Metro Manila, accounts for 43 percent of the total upcoming branded residences projects, underscoring the metropolis’s draw as a center for high-end residential development.
Recent trends indicate a pivot toward smaller, more efficient unit sizes in newer projects, reflecting a nuanced approach to changing consumer preferences, and a strategy by developers to drive volume sales with entry level products.
This shift dovetails with the broader transition towards mixed-use developments that are focused to attract buyers with branded products at premium pricing points
The research noted the Philippines’ branded residences market exhibits a pronounced contrast between urban and resort locations. Urban areas, led by Metro Manila, overwhelmingly favor condominiums, while much of the new incoming supply in the Visayas and Palawan is mostly resort-based as part of a hospitality operation.
This highlights the varied market dynamics, with Metro Manila appealing to those seeking an urbanized lifestyle, while the resort areas offer leisure-style living and vacation homes, the research said. Bill Barnett, managing director of C9 Hotelworks via Asia Property Awards.
