Low mortgage rates keep residential market upbeat

CEBU, Philippines —  Developers are told to brace for a more active residential buyers’ market this year, as mortgage rate is seen remain low.

Real estate services provider Colliers International Philippines projected that buyers continue to look for good properties up for sale, as the interest rates is at its most attractive level, said Colliers Joey Roi H.Bondoc, head for research at Colliers Philippines.

“Buyers continue to take advantage of the low mortgage rate. A lot of investors are willing to buy at this point,” he said.

However, amid the active buyers’ market at the time of pandemic, Bondoc warned that developers should tweak their offerings, marketing strategies, as buyers are also becoming wiser with so much inventories to choose from.

Colliers suggested that developers should tap the demand for integrated communities in both condominium and house and lot packages.

Aside from investor buyers, Cebu is also popular for end-user buyers like the young professionals, empty nesters, retirees and overseas Filipino workers (OFWs).

Today and post pandemic, buyers are already too particular with sanitation, well managed property system, and heath-friendly facilities, among others.

Moreover, it would also help if developers would be able to profile the buyers, so that flexible payment terms should be offered depending on the capacity of the buyers to pay.

“Flexible payment terms is very important” reiterated Bondoc.

The robust health of the real estate sector would also depend on how well the developers would adjust to the capacities of the buyers. This means, that standard payment terms may not work as of this point, what work instead is a custom-fit payment terms depends on the profile of the buyer.

The interest on buying property is high, he emphasized, but developers should be clever enough to adjust to today’s different buying behavior.