What are the residential property market trends in the Philippines for 2021? In 2019 and 2020, many of the big real estate companies were very happy to report about the bullish market brought about new income trends among the middle and upper-middle class. But then Covid-19 happened and everything spiraled downwards. How was the market last year compared to the forecast this year? Let’s find out and discover if we are or can be a part of that trend.
How was the residential property market in 2020?
The unprecedented Covid-19 pandemic hit everyone and everything in the gut. Businesses closed, people lost jobs, while some lost their health, lives, or loved ones. Even remittances from OFWs either trickled or stopped completely because many became jobless abroad. Honestly, everything looked and felt so dreary that each day seemed like a drag.
With that, the once-booming residential property market in the Philippines took a big dive.
The country experienced the worst economic downturn in 30 years and it seems that there was no end in sight. Last year, people were getting restless and hopeless, too. Apart from physical health, the pandemic took a toll on our mental health.
Real estate sales reportedly fell by -49% just by the first quarter of 2020. Industry giants like Megaworld and Ayala Land drastically cut their capital spending in 2020 due to the lockdowns.
Instead, they channeled a lot of their resources to helping our fellowmen through donating medical supplies, food, and setting up testing laboratories.
A Brighter and Better 2021
Despite a really unfortunate 2020 on so many levels, the residential property market trends this year are starting to swing upwards. And experts say that this is because of increased interest among Chinese investors in Philippine real estate.
The Philippine Central Bank is projecting a 7.8% rise in sales so companies are also looking to a strong rebound this year, due mainly to Chinese investors rushing to buy discounted units.
With the distribution of Covid-19 vaccines, more borders are opening and the market is starting to look really rosy.
But since our movements are still very limited, the developers and banks are still lenient regarding mortgage rates. Will the pandemic finally bring your something good? It just might.
If you are planning to buy a house and lot or condominium unit, this might be a good time to invest in one.
Can You Afford it?
Many people have shifted to working from home where it is safer. Household income has become more stable plus families are looking for better homes and neighborhoods because both the grownups and the students are staying home most of the time.
Developers are gunning for the current low-interest rates and mortgage rates in order to provide a flexible payment term to buyers.
Despite all of that, it is still your personal finances or household income that will determine if you can afford to invest in property at this point. Estimating mortgage affordability based on income can be easy by using a mortgage calculator.
This tool helps people determine if their current income is enough to pay a regular monthly mortgage on top of other debts, bills, and daily expenses.
Using this tool, we realize more often than not that we can actually afford a new home with some simple adjustments. We just have to see the data clearly on paper. And the computations from data would never lie.
Are You Ready to Live Independently In Your New Home?
In every problem or obstacle, there is always a silver lining that we can look for. The pandemic may have brought a lot of unfortunate things, but it has also lowered the prices of real estate property. This might be the opportunity you are waiting for.
So if you have been planning and saving for several years now, maybe it is the right time for you to jump at this chance of paying low mortgages. Discounted properties coupled with low-interest rates sound like the perfect dreamy combo for me in buying that property you want.
With the right calculation and some minor lifestyle adjustments, your dream home just might be within your reach.