Realtor: Condo oversupply in NCR due to ‘mismatch’ in inventory, demand | ABS-CBN
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Realtor: Condo oversupply in NCR due to ‘mismatch’ in inventory, demand
Realtor: Condo oversupply in NCR due to ‘mismatch’ in inventory, demand
High-rise residential buildings in Quezon City. Mark Demayo, ABS-CBN News/file
High-rise residential buildings in Quezon City. Mark Demayo, ABS-CBN News/fileMANILA – A mismatch between inventory and demand in the real estate market may have caused the oversupply of condominiums in the capital region, a realtor has said.
MANILA – A mismatch between inventory and demand in the real estate market may have caused the oversupply of condominiums in the capital region, a realtor has said.
Real estate products being developed in Metro Manila “do not align with what buyers actually need,” said Anthony Leuterio, founder of Filipino Homes.
Real estate products being developed in Metro Manila “do not align with what buyers actually need,” said Anthony Leuterio, founder of Filipino Homes.
“The problem in the whole country is that they are not looking at the marketing side—the unmet demands… The studies are focused on developers, not on the actual needs of the market,” Leuterio said.
“The problem in the whole country is that they are not looking at the marketing side—the unmet demands… The studies are focused on developers, not on the actual needs of the market,” Leuterio said.
Leuterio noted that the industry relies on “flawed” market studies. Based on his statement, these studies were based on decisions “skewed toward their perspective, rather than considering the broader market.”
Leuterio noted that the industry relies on “flawed” market studies. Based on his statement, these studies were based on decisions “skewed toward their perspective, rather than considering the broader market.”
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He instead urged developers to put a premium on market research rather than relying on internal studies.
He instead urged developers to put a premium on market research rather than relying on internal studies.
This should include focus on buyers’ financial capacity instead of funding big-ticket projects that “require high recovery costs.”
This should include focus on buyers’ financial capacity instead of funding big-ticket projects that “require high recovery costs.”
He added that developers should focus on understanding the financial capacity of buyers, rather than funding expensive projects that require high recovery costs.
He added that developers should focus on understanding the financial capacity of buyers, rather than funding expensive projects that require high recovery costs.
“The Philippine real estate market holds immense potential, but addressing the mismatch between developer offerings and buyer needs is crucial for sustainable growth,” the statement read.
“The Philippine real estate market holds immense potential, but addressing the mismatch between developer offerings and buyer needs is crucial for sustainable growth,” the statement read.
“By prioritizing accurate market research and adapting to the unmet demands of buyers, developers can bridge the gap and unlock opportunities in this thriving sector,” it added.
“By prioritizing accurate market research and adapting to the unmet demands of buyers, developers can bridge the gap and unlock opportunities in this thriving sector,” it added.
Leechiu Property Consultants (LPC) CEO David Leechiu earlier said rental rates for mid-market condo units have already dropped to their lowest in about 15 years.
Leechiu Property Consultants (LPC) CEO David Leechiu earlier said rental rates for mid-market condo units have already dropped to their lowest in about 15 years.
He expects this downward trend to continue this year, particularly in the Manila Bay area, Alabang, and Makati where the exit of Philippine Offshore Gaming Operators (POGO) have resulted in a lot of vacancies.
He expects this downward trend to continue this year, particularly in the Manila Bay area, Alabang, and Makati where the exit of Philippine Offshore Gaming Operators (POGO) have resulted in a lot of vacancies.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort, for his part, believes the string of interest rate cuts by the BSP would also help boost demand for the property sector.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort, for his part, believes the string of interest rate cuts by the BSP would also help boost demand for the property sector.
Ricafort also does not see too long of a lag time for these rate cuts to take effect.
Ricafort also does not see too long of a lag time for these rate cuts to take effect.
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