Array
Real Estate

These Business Districts Saw An Increase in Condo Prices in the Last 5 Years

Colliers reveals the average growth rate of residential condos in Bay Area, BGC, Makati and Ortigas

Shares
Photography: Pexels

Prices of residential condominium units in Metro Manila’s major central business districts (CBDs) rose by an average of 43 percent in the last five years, according to real estate analyst Colliers International Philippines.

In its latest quarterly report on Metro Manila’s residential property sector, Colliers revealed that the average price of actively selling projects in four major CBDs grew to Php161,700 per square meter in the first quarter of 2018 from Php113,100 in the first quarter of 2013. The four CBDs covered by the study included Makati, Bonifacio Global City (BGC), Ortigas and the Bay Area.

ADVERTISEMENT - CONTINUE READING BELOW

The five-year growth translates to a compound average annual growth rate (CAGR) of seven percent between 2013 and 2018. CAGR is a measure of constant return over a period of time. Of the four CBDs, the Makati business district showed the highest growth rate of 92 percent from Php123,000 per square meter in the first quarter of 2013 to Php235,600 per square meter in the first quarter of 2018. The equivalent CAGR is 14 percent.

BGC posted the second highest rise in residential condo prices, going up by 52 percent from Php112,800 per square meter in the first quarter of 2013 to Php171,600 per square meter this year. Condo prices had a CAGR of nine percent.

Not far behind is the Bay Area, where average unit prices stood at Php162,300 per square meter, up 46 percent from Php111,300 per square meter five years ago. The CAGR is eight percent.

Average condo prices in Ortigas rose 29 percent between 2013 and 2018 or from Php99,600 per square meter to Php128,400 per square meter. That translates to a CAGR of five percent.

ADVERTISEMENT - CONTINUE READING BELOW

“The noted price increases across the Metro Manila market was not surprising as pre-selling numbers continue to show positive results,” wrote Colliers in the report. It added that “the most expensive condominium in Metro Manila is now priced close to Php400,000 per square meter,” saying that the Php400,000 mark will be breached very soon.

While all four CBDs have already experienced massive price growth in the past five years, the forecasts show no signs of it stopping anytime soon. In the report, Colliers forecasted that Makati and the Bay Area will see even higher demand for condominiums due to “companies acquiring residential units for their employees in these submarkets, augmented by the presence of Chinese nationals.”

“It must be stressed that it is still a very competitive condominium market,” added Colliers.

 

*****

Lorenzo Kyle Subido is a staff writer of Entrepreneur PH

 

This story originally appeared on Entrepreneur.com.ph.

* Minor edits have been made by the Realliving.com.ph editors.

ADVERTISEMENT - CONTINUE READING BELOW

More on Realliving.com.ph

Shares

Latest Stories

7 Plants That Can Help You Keep Dengue Away

You need to do more than just plant them outside your home

Make Your Home Smell Like a Fancy Hotel for Less Than P700!

Shop for scented candles, room sprays, and more essentials while maintaining your budget

10 Things You Need to Clean to Avoid a Stinky Home

We tend to overlook how scent contributes to the first impression our house makes on guests �" or on us!

5 Organizing Ideas We Can Learn from this Family Home in San Juan

This home doesn't just have picture-perfect rooms. Let it inspire you to get organized.

Amoy Kulob at Mabaho? Here Are Ways to Keep Your Home Smelling Fresh

Because a beautiful house needs to smell good, too

Those School Buildings We Grew Up With Are Called Gabaldons

The President recently signed a law that mandates their conservation

These Are The Reasons Why You Have a Messy Home

Manage the clutter in your house with these tips from an interior designer

Which One is Best for Your Home: A Diffuser or A Humidifier?

Here is a quick guide between a diffuser and humidifier to help you decide which one is better for your space

6 Convincing Reasons Why It's Better to Rent Than Buy a Home

Paying monthly dues is less stressful compared to managing real estate taxes

9 Affordable Ways to Give Your Kitchen Cabinets a Makeover

Updating the look of your cabinets can greatly improve the overall ambiance of your kitchen

Is Your House Making You Sick?

Household pollutants may cause respiratory diseases and other health problems

These Cozy Laundromats Offer Good Food and Coffee, Too

These well-thought-out spaces are making us look forward to laundry day!
Load More Stories

Get inspiring design ideas and handy hints.
Subscribe to our newsletter now!