The ongoing Covid-19 pandemic has undoubtedly taken its toll on the Philippine economy. Among the local industries that have been directly affected has been real estate, as the ongoing uncertainty resulting from the health crisis has resulted in lower demand in property due to investors becoming a little less willing to spend on residential and commercial spaces.
According to the Bangko Sentral ng Pilipinas (BSP), residential property prices in the country declined in the first three months of 2021. Based on BSP’s Residential Real Estate Price Index (RREPI), the prices of various types of new housing units in the country specifically lessened by 4.2-percent year-on-year. According to the Central Bank, this had mostly been the result of “subdued demand for residential properties amid the pandemic”.
Colliers International shared the same sentiments. The internationally recognized consultancy firm has projected that, as the economy in the first quarter contracted by 4.2-percent, rent for residential properties may shrink by 3.8-percent to Php684 per sqm. They see the recovery of property prices possibly beginning in 2022 at the earliest, but only depending on how quickly the Philippines economy overall also gets back on track.
Now’s the Time to Buy
As per the BSP, the lower real estate loans made during the first three months of 2021 were an additional implication of how demand for property slowed. The number of home loans granted in the first quarter of 2021 for all types of new housing units in the Philippines contracted by 14.7 percent compared to the first quarter of 2020 and by 32-percent compared to the fourth quarter of 2020.
As a result, banks have begun making adjustments to their terms and other aspects of the housing loans they offer in an effort to encourage borrowing and increase the number of loans they release. Experts say this has made 2021 an ideal time to buy a brand new home.
In their report, Colliers shared that serious real estate buyers should take advantage of the economic downturn by signing on to the longer-term loans being offered by banks at discounted rates and purchase real estate assets now when some developers are still reducing prices to fill up vacancies during this time of uncertainty.
After a significant decline in 2020, prices reportedly dropped by another 2.5-percent in the first quarter of 2021, while vacancies further increased to 16.3-percent after reaching 15.6-percent last year. An estimated 10,400 units are being projected to be completed in 2021, with many expecting vacancies reaching a record-high by the end of the year.
Finding the Home That Fits Your Needs, Preferences, and Budget
With an increasing number of options becoming available on the market accompanied by comparatively lower prices from years prior and favorable home loan terms, 2021 is indeed as good a time as any to buy a new home for sale.
Granted, purchasing property is easier said than done, and while home values and loan terms are lower, buying a house or buying a condo still involves a significant amount. It is understandable that if you had long been considering moving to a bigger and/or larger space but held off due to the uncertainty of the pandemic, and are now making sure you find a home that will provide your substantial value while on the market at a favorable price.
At Ohmyhome, discover a myriad of pre-selling, ready-for-occupancy (RFO), and resale properties to choose from, with new homes being listed on a regular basis. Transactions are easy and can be done in full by way of the do-it-yourself (DIY) feature on the Ohmyhome app, and should you need professional assistance, Ohmyhome separates itself from other prop-tech companies by having an in-house team of real estate professionals that you can count on to help you throughout the entire property process.
Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate agents help in the shortlisting of options and provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.