2nd home market to revitalize real estate sector
Iris Gonzales (The Philippine Star) – November 9, 2020 – 12:00am
MANILA, Philippines — A new market segment is revitalizing the real estate industry disrupted by COVID 19, according to a study by leading real estate services firm Leechiu Property Consultants (LPC).
In a recently released study, LPC said the second home market, focused on gated resort communities in Batangas, is seeing strong demand from high-net worth individuals tired of being cooped up in Metro Manila and looking for investment opportunities.
Transactions in Tali Beach, Kawayan Cove, Peninsula de Punta Fuego and surrounding areas have scaled up with most buyers seeking healthier environments away from the metropolis’ major business districts where transactions have correspondingly slowed down due to rising COVID infections.
“At least 40 properties have changed hands in the past few months in Punta Fuego alone. I haven’t seen this volume of transactions in 20 years,” said David Leechiu, LPC CEO.
This confirms an earlier report by The STAR’s Property Report, which noted that property prices of beach homes in Batangas have risen by at least 20 percent.
“Consequently, property values in these neighborhoods have risen by 20 to 46 percent from 2019 to the present with many transactions done in cash,” Leechiu said.
Non-listed transaction values for average lot areas of 400 sqm to 800 sqm. range from P 10 million to as high as P50 million.
Leechiu said bids for properties in these markets do not look like they will slow down any time soon.
“In some areas, there are many offers, but no homes to buy,” Leechiu also said.
Moving forward, these properties are likely to appreciate in value even after the pandemic, as new roads like CALAX, CAVITEX and improvements in the South Luzon Expressway and other thoroughfares cut travel time from these residences to the metropolis, the LPC study also noted.
“The rising popularity of second homes and other resort properties “are not just impulse buys driven by pandemic sentiments. They are also well-evaluated, carefully planned moves of investors with the foresight to know that these properties will remain prime long after COVID 19. The pandemic has merely re-focused attention on these seaside havens,” according to the study.