Friday, November 14, 2014
The sheer number of residential units on the market has prompted developers to shift gears and slow down. From January to August, license applications for residential projects has seen only a 0.3- percent growth, says one property consultant.
Colliers Philippines, in its quarterly report, noted that only mid-incoming housing showed any significant improvement. License applications for that sector had grown 13.7 percent year on year during the eight-month period. License applications for residential high-rises had risen only 4.4 percent, to 51,260 units. By contrast, socialized housing decreased by 4.8 percent, and low-cost housing by 7.21 percent.
Filed to the Housing and Land Use Regulatory Board (HLURB), the license applications serve as a marker for the state of property development. This year’s “flat growth” in residential, according to Colliers, is indicative of a more conservative strategy among developers, especially when it comes to these five key locations: Alabang, Bonifacio Global City, Eastwood, Ortigas, and Makati.
“After numerous project launches since 2011, developers have switched to a more conservative stance in introducing new projects in these locations,” issued Colliers in its report. “Apart from decreasing availability of land options, the influx of supply expected in the next few years induced a more selective atmosphere for developers when timing becomes more important to avoid saturation in the market,” stated the report.
Meanwhile, the total number of licenses to sell issued by HLURB jumped by 47.9 percent. At 256,410 units overall, the growth was buoyed mostly by non-residential projects, and in particular, a 200-percent increase in memorial park applications. Likewise, a marked positive growth can be observed in industrial subdivisions, under which license applications had jumped by 87 percent.