Developers keep bullish outlook: Property sector to remain upbeat in 2022

CEBU, Philippines —  The year 2022 is yet another thrilling journey for the real estate sector particularly in Cebu, as more investments will be poured in for new property projects especially residential developments.

According to real estate broker and founder of Filipino Homes Anthony Gerard Leuterio inventories or projects completed since two years ago have already been depleted.

This means that despite the COVID-19 disruption since 2020, the market continued to be active and that people continue to shop for houses either for investment purposes or personal use.

He said even at the height of the Covid-19 pandemic, real estate became one of the busiest sectors as demand skewed towards homes large enough to accommodate the work from home and e-schooling set-up. Some buyers also bought properties in the countryside, away from the busy and crowded metro.

This year, Leuterio said developers are again building more residential projects, but designs and architecture will be different from traditional. Aside from healthy safety security features, new residential projects are now built to sustain strong typhoons and with contingency backup like power, water supplies among others.

“People, since the pandemic, upgraded to pandemic-proof homes. They want more indoor space, wider outdoor space and even gardens, among others,” he said. “So those that were able to cater to this market this year by offering or launching new projects, they”ll reap better results next year. They’ll be busier.”

Tytans Properties president Gerard Tan said in a separate interview that the company is spending P4.5 billion this year to start off building “Tambuli Seaside Living” phase 2 project, which will add more residential units, condo-hotel features and a 150-room luxury resort component, the Tambuli Seaside Resort and Spa.

Priland Development Corporation has started the construction of one-hectare residential project in Mactan Island, Breeza Scapes.

This is in response to the rising demand for living spaces prompted by the pandemic, said Priland president Ramon Carlo Yap.

Amidst the challenges brought by the pandemic, Yap said that they remain steadfast and aggressive in constructing homes for Filipinos as they continue to expand their real estate footprint.

Grand Benedicto, Be Group president and chief executive officer, said the housing market has remained resilient in Cebu because of the large unmet demand for housing.

The change in market preferences like buying properties far from the city center has also been amplified, Benedicto added.

Winners

But while the real estate sector continues to play ahead of other sectors amid pandemic and the aftermath of typhoon Odette, Leuterio believes that success in taking advantage of the promising environment depends on how developers are playing their cards in 2022.

“Developers who want to make it big and be more profitable in 2022 should prepare themselves for the influx of two big markets—the local and foreign buyers,” Leuterio explained.

“Those who have positioned themselves in 2020 and 2021 will surely become big winners in real estate in 2022,” he added.

He said that those who were able to scout ahead of potential locations, identify new real estate products while the economy is on a stagnant growth due to the Covid-19 pandemic and understand the new market preferences will be able to reap the opportunities in 2022.

To enter the “winner circle” in real estate this year, Leuterio recommended that  developers should grasp buyers’ purchasing power, invest in technology and build better quality and sustainable projects.

Leuterio reiterated that in order to capture the market’s attention,  better pricing with flexible payment terms are some of the top considerations of the buyers these days.

While real estate has suddenly became a digital-first sector since 2020, continued investments in technology and other sophisticated digital tools will also give developers an edge over their competitors and win the market.

The availability of digital payments and other tools that will make selling and buying more convenient are still crucial in the years ahead, Leuterio noted.

The real estate market, which came to a standstill in 2020 because of the first wave of the Covid-19 pandemic, hastened its digital adoption compressing what the industry believed a 30-year delay in technology adoption to 18 months and counting, saying “the pandemic fast tracked the innovation in real estate.”