Philippine Real Estate Market – Continuous Recovery in 2024

Real Estate Philippines Under Recovery 2024

The prolonged impact of the COVID-19 pandemic has significantly affected various industries, including the Philippine real estate market. While recovery is probable, the market remains slower and unstable. However, according to recent data, real estate is continuously increasing.
 
That’s why we gathered vital information to discuss and evaluate the Philippine real estate market's continuous recovery in 2024.

Housing Market

As the Philippine economy grows, the housing market also shows signs of recovery. According to Colliers International, Metro Manila's housing cost soared by 3.98% in 2023. This modest growth is seen within the central business districts (CBDs) as a luxury 3-bedroom condo unit costing around P203,550 per square meter. If adjusted based on inflation, the cost of CBDs’ luxury properties is nearly steady the previous year. In the fourth quarter of 2023, the housing price increased by 1.33%, while 1.17% considering inflation.
 
Recent data also shows continued and improving demand. In 2023, the pre-selling of CBDs’ condo units rose to around 23,400, a remarkable figure compared to 13,000 sold units in 2021. Nonetheless, these figures are still far from the pre-pandemic pre-selling activity, which is around 40,000 to 50,00 sold units. Hence, these data suggest that the Philippine real estate market is rising slowly.

National House Pricing

Based on the figures issued by the Bangko Sentral ng Pilipinas (BSP), the national house pricing is soaring swiftly. Compared to Metro Manila CBDs, the residential real estate price index nationwide increased by 6.5% in 2023. The national house price in 2020 is about 0.8% and 7.7% in 2022. If adjusted for inflation, the price index dropped by 3.6% in the fourth quarter of 2023. The following shows the national house price per property type:

• Single detached/attached houses – increased by 9.5% and 5.4% if adjusted for inflation (2023). But in the latest quarter, the price index dropped by 3.3%.
• Townhouse – rose by 4.9%, while 0.09% for inflation-adjusted in 2023.
• Duplex houses – On the contrary, the price dropped by 33.5% last year, and duplex houses plunged by 42% in the fourth quarter of 2023.
• Condominium units – prices increased by 4.1% last year 2023, while 0.1% considering inflation. However, each quarter, the prices of condominiums plummeted to 8.6% in 2023 around the fourth quarter.

Philippine Economy

Apart from that, the Philippine economy remains relatively resilient, as it grew 5.6% in 2023. As per the Department of Finance, the economy increase in 2022 by 7.6% and decline in 2020 by 9.5%. On the other hand, the country's economy grew by 6.4% yearly from 2010 to 2019. The government also anticipates economic growth of 6.5% to 7.5%. Considering these figures, the real estate market in the Philippines is seen to rise.
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Summary

To sum up, the lingering post-pandemic effects caused many industries to be dormant, making it difficult for many to cope and recover. The same applies to the Philippine real estate market. Despite being one of the top human necessities, the country’s real estate has drastically declined in the past few years – after the pandemic made it impossible for many to enter the industry.
 
Furthermore, since the Philippines economy is steadily improving, the demand for housing is most likely to increase this year. Therefore, we recommend to take advantage of this moment, which is a great time to invest. With fewer property buyers, wise investors may get a good deal by investing today in the real estate market.