Affordable units in urban centers getting the most inquiries

By Doris Dumlao
Philippine Daily Inquirer
Posted date: October 11, 2009

DEMAND FOR AFFORDABLE, residential condominium units in the metropolis is expected to increase in the aftermath of the devastating flood caused by Tropical Storm “Ondoy,” property experts said.

"All of a sudden, there has been an increase in inquiries from buyers looking for [condominium units],” said Danilo Ignacio, president of Eton Properties, the Lucio Tan group’s property development arm.

“There might be potentially a trend towards condos because of the safety of high-rise buildings. A lot of people are now saying, maybe we should have lived in condos,” Ignacio said.

Ayala Land Inc. senior vice president Bernard Dy, who handles the residential property segment, said condominium living in the Philippines had been gaining acceptance over the years and agreed that “Ondoy” could add to the impetus.

“In the 1990s, condo living was not yet [popular]. This (rising popularity) is due to a multitude of factors, such as people wanting to have a high quality of life and wanting to live right within the city. Also, OFWs (overseas Filipino workers) are used to living in high-rise buildings, so when they come back here there is no aversion,” Dy said in a separate interview.

“So you see a trend in that direction and now you add another factor—people worried about flooding,” Dy said.

But as to the potential magnitude of demand from those directly hit by Ondoy, Dy said it’s hard to project at this time.

“Because of the displacement. The question is: where do they allocate funds? Do they buy a new property or repair their homes?” Dy said.

For new homebuyers who have turned cautious after Ondoy, Ignacio said the demand would be for high-rise condominium units in urban hubs that will be affordable to the middle-income market.

“The niche market is affordable but high-rise quality residence. It doesn’t have to be big, but it must have high elevation,” he said.

As to building designs, Ignacio said basements would likely become less popular.

“There will be higher preference for above-ground parking,” he said.

This is amid reports that some high-rise buildings, even in elevated areas like Makati, had suffered from flooding in the basement because of Ondoy.

For buyers of single-detached residential properties, Ignacio said there would likely be a shift in trend toward multistory houses and away from bungalows.