| Photo from Global Mansion.com, LA penthouse via SV Derodar
One of the few surprises in recent real estate development trends for many of us is the prices now in the Philippines but in highly coveted addresses. You are sure of the famous Central Business Districts in Metro Manila such as Makati, Bonifacio Global City, Ortigas, etc. Properties are not created equal. High-performing brands command more prices than the lesser alternatives.
It is almost unthinkable how prices have risen over the years especially for those who have been away from the Philippines. However, developments in the area and the urban landscape have transformed support pricing and palpably understood demand. It is a clear testament to how real estate appreciates.
When someone offers you a property at a nicely appointed location, don’t even wonder if you’re surprised by the asking price; that one could be perfectly priced. But, pricing can actually be because of many factors: location, size or area, type of building, infrastructure, amenities, etc. A boutique building, exclusive can it be is also differentiated by its uniqueness. High-rise buildings, on the other hand, appeal to urbanites needing efficiency, speed, and functionality.
As you may know, the cost of condo construction varies tremendously from unit to unit and building to building. You can imagine the difference in price floor to floor. The best in class stands out when you look at it: prime location, unique amenities, accessibility, service, etc. The land acquisition costs alone predict premium. In comparing the price per square meter in city centers versus suburban areas, there’s much space for your buck as property values are much higher in highly urbanized zones.
Perhaps, the price is suitable for an investment equated to the level of your willingness to invest, as indeed property investment is a different ballgame. Trends in the cities speak of luxury, prestige, and experience. In short, luxury sets its number. It brings the price to its selling potential.
“The best in class stands out when you look at it: prime location, unique amenities, accessibility, service, etc. The land acquisition costs alone predict premium.“
As they say, “there’s no checklist for labeling a property as luxury,” many features of this category include high-end interior finishes such as quartz countertops, professional-quality kitchen appliances, customized closets, glass windows, and hotel-like amenities such as concierge services, a top-of-the-line fitness center, game room, entertainment room, swimming pools, expansive terrace, and even a spa center, etc. What about your private elevator and a plunge pool on the lounge deck? Many buildings these days provide exceptional add ons making them experiential of luxury.
To add, buildings with unique features, design, and peculiarities can be crown jewels illuminating the city’s skylines. Famous architects and designers have succeeded in their attempts for brilliance, sustainability, and presence. The likes of I.M.Pei, Polish-American architect Daniel Libeskind, and Carlos Ott bring buildings to their prestige. They can add to the cost as superiorly designed buildings tend to value superiorly.
Interestingly, developers frequently test the market by offering introductory inventory while defining their mix of offerings to cater to broader demographics. A one-bedroom Executive follows a studio before increasing to a regular one-bedroom. The bigger the units to two bedrooms and three bedrooms are mainly situated to maximize its use and value. The views are more expansive and, in most cases, prime views. With the opulence it offers, a unit layout can be open-floor as well as with floor-to-ceiling windows.
“When the price is right, it could be high time to consider the investment. Believably, there are units that we can irresistibly take. Could this be the one you were eying for quite some time?”
Luxury properties in Makati or BGC are priced the way they are because of their land area per square meter value and, obviously, the convenience these developments offer due to being centrally located. When properties are overly priced considering what you get for it, including the location, it is perfect to assume that buyers can quickly notice as comparatives will always be available. The long list of prime high-rise buildings competes by its location, fine features, and signature space characteristics.
When the price is right, it could be high time to consider the investment. Believably, there are units that we can irresistibly take. Could this be the one you were eying for quite some time? Many of us would agree that having a unit in great addresses would make promising returns if not a few units in great addresses.
As COVID-19 remains to impact real estate these days, it can mean an opportunity to seize the price its currently offering since take up is continuing and the demand for luxury is steady.
When the price is right, it signals you the buying probabilities for a product. The market is always willing to embrace it if deserved, and the demand is high. In most cases, the response of the market dictates price increases.
(Stevenson’sexperience in Philippine Real Estate spans more than 15 years. He has been involved in horizontal, vertical, vacation, and commercial properties. He has worked as an International Property Specialist to markets in Asia, Europe, and North America with Ayala Land, Federal Land, and Century Properties. ThroughPhil House Hunters, he offers real estate investment opportunities, marketing, and consultancy with a key focus on Metro Manila and Mega Cebu areas. Visit www.philhousehunters.com.Email at firstname.lastname@example.org.)