The real estate market has experienced a massive boom in the last couple of years, and many people are eager to become homeowners. To help buyers, Nurtura Land & Home looks at eight crucial trends that are shaping the market today:
Continued High Demand
Buyers from low- to mid-income markets will continue to spur the home buying frenzy, especially as more affordable housing options become available to them. Also contributing to the surge are OFWs, who are purchasing properties either for their families or for themselves as they prepare to relocate to the Philippines in the future.
A Millennial Market
Homebuyers will also start to skew younger, owing primarily to professionals working in the BPO industry. As the National Statistical Coordination Board points out, the country will also hit a “demographic sweet spot” by 2040, when 66.6% of the population will enter the working–and therefore home buying–age group.
Building outside the Metro
Owing to the incredible housing demand, the country’s top land developers have begun building communities in outskirt provinces like Cavite and Bulacan, as well as in key regional cities like Davao. In fact, the Subdivision Housing Development Association (SHDA) has committed to building one million new homes by 2016 to help curb the country’s housing backlog, which currently stands at 3.9 million.
Real Estate Bubble Fears Still Unfounded
The real estate boom has many wondering–and worrying–if a housing bubble lies in the horizon. During the Asian Real Estate Summit, however, Board of Real Estate Service Chairman Eduardo Ong said that: “There is no truth to the rumor that there is going to be a real estate bubble.” This sentiment is echoed by Jeremy Kelly, director for global research of Jones Lang LaSalle, who says that the country is in the “midst of an urban revolution.”
BSP to Release Real Estate Price Index
The Bangko Sentral ng Pilipinas (BSP) plans to release the country’s first Real Estate Price Index by early 2016. The index not only serves as a safeguard against housing bubbles, it will also give buyers a clear idea of property price trends in a given area. While designed initially for Metro Manila properties, the BSP plans to eventually develop a price index for nearby provinces and key cities around the country.
According to a survey conducted by Nielsen, 79% of Filipino consumers are willing to pay a premium for products and services that are socially and environmentally responsible. Hence, sustainability, energy efficiency, and eco-friendliness of both materials and construction will be major considerations for today’s homebuyer.
Homebuyers have not only become more environmentally conscious, they’ve become more health-aware, too. When choosing a community, many buyers look for amenities that promote an active lifestyle, such as parks and playgrounds. And science backs up the health benefits of these so-called green spaces: one study shows that a 10% increase in green space can lower incidence of disease and ultimately extend life expectancy by five years.
Simple, Elegant Design
A home’s style is also a major consideration for would-be buyers, and these days many houses are built with a sleek, Asian aesthetic. Their modest size is conducive to uncluttered living, while their sophisticated design make it a pleasure to live in.
If you want to learn about the latest community to rise in Davao, visit Nurtura.ph.