REAL ESTATE DURING MECQ and GCQ

A lot of people have been asking the long-term impact of COVID-19 will be on the Philippine residential real estate market. In fact, some savvy cash-ready investors are on the lookout for discounted properties to swoop into. Many of the local experts like Leechiu and Colliers International have said that corrections of 15% can be expected for secondary market properties, while preselling properties will not cut prices but instead offer easier payment terms and lower monthly investments to cope up.

For properties in the Greater Metro Manila Area (except Cavite, which is in General Community Quarantine or GCQ), leasing is now allowed under the Modified Enhanced Community Quarantine or MECQ. Funerary real estate can also be bought and sold in the MECQ. In the meantime, all types of properties can now sold for areas under GCQ. This is a good development for us indeed, since our economy can now start its gradual recovery until we find a vaccing for the COVID-19 virus.

According to KMC Solutions, Philippine residential real estate still has strong potential to provide good returns even in a difficult economic environment. Especially when you look at the volatility that comes with other investment asset classes.

“Real estate investment is a good idea to diversify your investment portfolio. Equities are much more volatile and carry more risk in general, and real estate can help manage volatility and risk and make your investments more efficient,” Amanda Carpo, Co-Founder of KMC Solutions, explained. “More than ever, investors need to understand the effects of volatility. That is what we will be experiencing in the near future.”

As the Philippines moves from enhanced community quarantine (ECQ) to general community quarantine (GCQ) and business resumes, investors will begin exploring their options. Philippine residential real estate is expected to be one of the country’s more resilient sectors over the long haul. That’s because real demand for housing in the Philippines will remain.

“Condominiums have an advantage over other real estate as developers situate their properties in areas where the projected demand is already strong. This, partnered with the attractive amenities and potential for market appreciation, add to their appeal”.

Further, condominium owners can fit their properties to leverage off special industries such as co-living arrangements as well as the strong and steady market for student housing.”

In the short term, a buyer’s market may form allowing property investors to take advantage of lower than expected housing prices. Philippine residential real estate investors with cash in hand are expected to have more opportunities now than when the recovery begins in earnest.

Consequently, the “new normal” for Philippine residential real estate may not be all that different from what we saw prior to the COVID-19 outbreak. And that’s good news for investors wanting to avoid volatility in these uncertain times.