Developers seen ramping up projects

Property developers in the country are regaining the appetite to build more high-rise residential condominium units after curbing their product launches after inventory peaked in 2012, said property consulting firm Colliers Philippines Inc.

However, investors in the condominium market are seen facing an increasingly challenging rental environment as more supply comes in.

In the first nine months of the year, licenses to sell issued by the Housing and Land Use Regulatory Board  rose by 16 percent year-on-year, driven by the rebound in licenses issued to mid- and high-end condominium developers, a segment where license issuance advanced by 29 percent.

“This is the first time that we’ve seen this trend. In terms of (new product) launches, they have declined (in the first nine months) but licenses to sell increased,” Colliers Philippines director Julius Guevara.

“It supports the argument that they are now ramping up their developments,” he said.

In Metro Manila, Colliers reported that residential condominium take-up had expanded by 41 percent her-on-year in the third quarter.  For the nine-month period, take-up has expanded by 25 percent year-on-year to 30,700 units.

However, new condominium launches by property developers in Metro Manila for the third quarter declined by 3 percent year-on-year.  For the nine-month period, new launches fell by 20 percent year-on-year to 22,800 units.

But while property developers were “a bit bearish” in their launches in the first nine months, Guevara said the increase in HLURB applications and license issuance was an indicator that property developers were now keen on increasing their inventory, albeit still not at the aggressive pace seen in earlier years.

For 2016, he said there was a good chance new condominium inventory in Metro Manila could end at  30,000 to 40,000 units.