There is now a more evenly distributed market for properties to rent and buy in Metro Manila, a sign of changing applicant preferences and market needs.
Lamudi recently weighed in on three major trends in the real estate rental market during the COVID-19 era, and saw revealing changes in applicant priorities brought on by the pandemic, including changes in the way people approach rental of properties. At the start of strict community quarantines last year, workers in export-oriented industries were one of the few sectors identified as a priority – essential workers needed to continue face-to-face operations and keep the economy afloat. . Large-scale operations in sectors such as food production, business process outsourcing and other export-related services continued to operate as is, a difficult feat given the strict checkpoints and lack of of public transport. To ensure employee safety and minimize travel, many companies have provided on-site staff accommodation or have made available large residential spaces nearby for employees, as well as shuttle services to and from the plant. to designated pick-up or drop-off locations. In the first quarter of 2021, the distribution of leads for properties to buy and properties to rent becomes almost equal.
Luxury rentals still growing
The share of prospects for luxury rental properties worth PHP 200K – PHP 500K has increased in Luzon and the Visayas throughout the pandemic. In Luzon (outside Metro Manila), where there are many industrial factories and export processing zones, the share of prospects for properties for rent in the P 100,000-200,000 range increased in Q2 2021 compared to the same period of the previous year. The same trend was seen in Metro Manila and Visayas, with the leading share of properties in the same range showing slight gains from 2Q 2020 to 2Q 2021.
Affordable rentals in the metro rebound
In Metro Manila, demand for affordable rentals rebounded in 2021 as many returned to the office or preferred proximity to the office as they shift to more flexible hours in the new normal. Lamudi data showed a gradual recovery in leads for rental properties in the P5,000 – P15,000 range, which have posted quarterly gains since Q3 2020 and have maintained a lead share above 30% since Q1 2021. For those who are not yet quite ready to buy their own property as well as for many who are not based in the metro, renting remains the most immediately accessible option. With tenants worried about cohabiting in high-density spaces during a pandemic, real estate sellers may take advantage of amenities such as study and work stations, outdoor recreation facilities, and updated security measures. to allay any concerns.
Is the culture of remote work here to stay?
The increasing openness of businesses to work-from-home facilities, the growing number of self-employed workers and the current global economic situation have pushed many people to work in remote positions all the time. Joining the odd-job economy has become not only a lifestyle choice, but more a practical reality for many new graduates, employees with little security and reduced wages, migrants and creatives who wish to earn an income. additional during the pandemic. In an era of low hiring rates, many new graduates and those who have just left their jobs have turned to setting up small businesses and upgrading skills to access freelance online jobs to get started. to earn money.
In search of a balance
The possibility of working remotely from leisure destinations such as Ilocos Norte, Siargao, Palawan and even Boracay, has grown. The provinces have recognized the demand from many young professionals to work in scenic locations with plenty of long-term outdoor amenities and, in the case of Ilocos Norte, have even encouraged contractors and remote workers to relocate to their homes. shores. According to Lamudi data, some of the most popular cities overall in the second quarter of 2021 were well-known leisure destinations or cities with easy access to nature. Baguio, Tagaytay and Antipolo have joined Quezon City and Cebu City in the ranks of cities that have attracted the most searches from property seekers. While the cities of Metro Manila were the most sought after areas in Lamudi, leisure destinations such as Siargao, Bohol, Boracay and Zambales were also highly sought after. Brokers and sellers are encouraged to showcase homes that promise a more balanced lifestyle – fresh air and natural open spaces always close to shopping malls.
Vacation destinations are no longer a pipe dream
The province of Batangas and Lapu-lapu, have accumulated impressive overall growth figures in the second half of 2020 compared to the first half of the same year. In the second quarter of 2021, these leisure destinations continue to be among the most sought after places in the Philippines, perhaps attracting investors, end users and tenants. With revenge travel fueling demand for real estate, local hotel markets encouraging long-term stays, and investors considering leisure destinations for their rental business, domestic tourism has found an unlikely promoter in remote work. Brokers and property managers in these regions are actively monitoring tourism revival initiatives, vacation resort travel requirements, and Department of Tourism accredited tour operators to ensure a safe travel experience for customers.
Mobility is the key
For the many people who will return to the office, a home that allows mobility like those near transit hubs is the most convenient choice. Renting a home near a bus stop or train station allows easier access to major shopping areas in Metro Manila. Lamudi’s data on proposed destinations for the Metro Manila – areas with high pedestrian traffic – shows more real estate seekers were looking for rental properties in the second quarter of 2021.
“Rent to acquire” was the nonspecific term for a location most searched on the site at 1H2021. Despite the pandemic, data from Lamudi shows that areas such as Ortigas Avenue, West Rembo and Western Bicutan were primarily rental markets from Q1 2020 to Q2 2021 – likely due to their proximity to the CBDs of Pasig, Makati and Taguig, as well as mass. transit.
Hang on to properties
The real estate owners keep their properties in these zones, because the value of the land appreciates at the end of the metro project. In the meantime, if residing there isn’t the best option, landlords can rent the property to young professionals, small businesses, and even BPO businesses in need of staff housing depending on type and size. of the owner’s property. With the arrival of more vaccines, a significant proportion of workers who had returned to their home province during the pandemic could return to the metro in search of accommodation close to the workplace. Real estate brokers and managers prepare to respond to applicants online – this is where applicants will research potential homes and complete the necessary transactions. With on-site visits and eye inspections not available to them, property seekers will favor transparent, high-quality online listings, along with attentive customer service. Virtual tours, quality photos, responsive online customer service and transparent processes show the professionalism of the owner or real estate broker and help improve the online real estate rental experience.
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