Cover A home in Northeast Greenhills, San Juan, Metro Manila (Photo: Courtesy of Leechiu Property Consultants)
A home in Northeast Greenhills, San Juan, Metro Manila (Photo: Courtesy of Leechiu Property Consultants)
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David Leechiu provides his expert advice on the latest trends and investment opportunities in Philippine real estate
Amidst economic turbulence, real estate has traditionally remained a stable and reliable market. But, as the Philippines continues to evolve—weathering the storm that was a global pandemic—so does its property landscape, particularly the demand for its diverse array of investment opportunities. This is echoed and illustrated by industry veteran David Leechiu, who has closely observed the sector’s trends and dynamics for decades as founder of the privately held brokerage firm, Leechiu Property Consultants (LPC).
“In recent years, especially after the pandemic, where the desire for more open space and less congestion became a primary concern, there has been increased demand for residential open lots as well as house and lot packages,” he highlights, noting the emergence and popularity of projects on the outskirts of Metro Manila. “We have seen good price growth and a high take-up of these products located along major expressways or in areas with good access to highway infrastructure.”
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Several of these suburban projects happen to be modern townships, the rising terminology for master-planned, mixed-use communities that promise a more integrated lifestyle by combining residential, commercial and recreational amenities. Citing Nuvali, Ayala Land’s flourishing eco-city in Santa Rosa, Laguna, as a prime example, Leechiu sees this trend on a continued uptick, recognising its positive impact on both the economy and the well-being of residents. He says, “These projects bring ‘city conveniences’ outside congested city centres and allow residents to have a better quality of life, while still providing acceptable commute times to workplaces.”
Above Seda Nuvali, a hotel within the upscale township (Photo: MDV Edwards/Getty Images)
Seda Nuvali, a hotel within the upscale township (Photo: MDV Edwards/Getty Images)
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Strong transportation links and infrastructure have likewise helped to maintain demand for homes in these areas. Leechiu adds, “Due to their size and locations outside of city centres, townships typically take more than a decade to mature, as long as developers provide the seed capital for the necessary commercial or institutional components to support growth.”
All this considered, LPC notes an evident shift in buyer demand toward landed houses over urban condominiums. The firm’s third-quarter report of 2024 identified that inventory levels have hit 67,600 units—the highest since the pandemic and the equivalent of almost three years of sales at the current pace. “High interest rates and alternative investments with similar capital value growth in townships are providing competition to the residential condominium segment, which is experiencing a bit of a slowdown,” explains Leechiu. As a result, developers are expected to be more cautious in launching new projects in the coming year.
Despite significant hurdles, Leechiu attests that there is reason to be optimistic. One of the most striking trends in recent years has been the sustained performance of high-end residential properties, with scarce assets proving highly attractive to the luxury market. Values in exclusive enclaves like Forbes Park have seen consistent appreciation, increasing up to 15 per cent despite the challenges of the past four years. Transactions in this segment have reliably reached impressive heights, with some properties changing hands for as much as PhP 1.3 billion.
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Two of the country’s leading, if not its foremost, business districts have also bounced back from rental rates before the pandemic. Taguig City is already ahead while Makati City is close to recovering, with prices only slightly lower than in 2020. The high-end condominiums in these areas pose great investment opportunities, as they not only provide consistent rental income but appreciate in value over time.
Above Makati City (Photo by Dondi Tawatao/Getty Images)
Makati City (Photo by Dondi Tawatao/Getty Images)
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Those who may be more adventurous are also encouraged to invest in land in the provinces, with Leechiu pointing out that the tourism boom has spurred significant developments and growth opportunities across the Philippines. Out of many examples, Bohol, Cebu, and Palawan are all exciting markets in terms of infrastructure development, giving way to more jobs and more livable communities outside the capital.
Highlighting how people “will always prefer to live near their workplaces”, Leechiu would like to see more affordable housing options within Metro Manila as a solution to the current housing backlog the country is experiencing. Despite uncertainties, he trusts in the Philippines’ strong economic fundamentals, growing population, and increasing urbanisation to drive demand for real estate in the years to come.
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Trained as a student journalist, Mac’s knack for writing was a serendipitous discovery. Years later and she can’t imagine doing anything else. When she isn’t typing away on a story, she revels in being lost in a new city, revisiting a cosy film or sitcom, and idling away with her dogs.
