Metro Manila condo demand picked up in 2022 with interest peaking during the third quarter of last year. This was the highest quarter on record since 2019. While still not at pre-pandemic levels, the return to work kickstarted the sector’s recovery and saw more people in the market for condominiums near their office.
According to data collected through the Dot Property Group network of websites, the number of inquiries made for Metro Manila condo units rose by 54.7 percent year-on-year during the fourth quarter of 2022.
Taguig, Makati lead the way
Taguig and Makati continue to lead the way when it comes to Metro Manila condo demand. The two areas, which are home to several key business districts, accounted for 46.5 percent of all National Capital Region (NCR) condominium inquiries last year. Quezon City, City of Manila and Pasig round out the top five locations for condos in the NCR.
The majority of Metro Manila condo demand continues to be for studio and one-bedroom units but a shift over 2022 saw interest in two-bedroom condominiums rise steadily. A need for larger spaces was among the most noticeable trends to emerge during the pandemic and doesn’t appear to be slowing down.
Beware interest rate hikes
Looking ahead to 2023, pent up demand will likely see interest continue to rise, although there a few things to monitor. Firstly, Metro Manila condo prices began to surge upwards which could make things too expensive for some.
According to research from the Bangko Sentral ng Pilipinas, prices for condo units in Metro Manila rose by 12 percent in the third quarter of 2022 when compared to the second quarter and 26.7 percent year-on-year.
Additionally, some experts have warned that interest rate hikes from the BSP may hinder the property market’s recovery in 2023 with the Metro Manila condo sector among the most likely residential segments to be affected.