Today’s buyers are taking a closer look
The Philippine property market today is giving buyers something they have not always had in recent years. It now offers more choices, more room to compare, and greater leverage when negotiating.
In interviews with several of the top REMAX Philippines’ real estate brokers, the insight is that buyers are still willing to purchase but they are becoming far more discerning. They are taking a closer look at the property, price, location, payment terms and long-term value before deciding. They are no longer treating real estate as one broad market where everything moves in the same direction.
A buyer looking at a condominium in Makati may behave differently from someone considering a house in the South. A ready-for-occupancy unit, a pre-selling development and a secondary market property offer different opportunities. Buyers are learning to distinguish between these markets and see where better value may be found.
A buyer’s market
This is one reason the current environment can be described as a buyer’s market. There are more properties to choose from, and buyers know they can take their time. They are comparing options and negotiating more aggressively than they have in many years.
Listed prices have generally remained steady, but movement is happening when sellers are willing to be flexible.
In the secondary market, a major focus for REMAX Philippines, some homeowners in certain markets are accepting offers around 5 to 10 percent below their asking price. These properties are attracting serious buyers because the value is easier to recognize and buyers also understand that this may be, indeed, the best time for them to act.
Not all sellers are prepared to adjust. But buyers now have enough alternatives to walk away when the price, condition and terms do not make sense. Flexibility has become an advantage for sellers who genuinely want to close.
More leverage
We are also seeing more end-users recognize that this may be a good time to upgrade their living situation. These are families and individuals looking for a larger home, a better location, a newer unit or a community that better fits the way they want to live.
In the past few months, we have had a number of these buyers finally secure their dream home with REMAX.
For many, the opportunity comes from having more leverage. They can negotiate on price, compare payment terms and look at several properties before committing.
Some move-in ready units can also be accessed with a relatively low initial payment, depending on the project and financing arrangement. This gives buyers who may have postponed upgrading a real chance to act.
Growing interest
Our offices servicing the South of Metro Manila are also seeing growing interest in good value properties in their area, particularly in and around Nuvali in Laguna.
Buyers are looking at the area not only because of price, but because of the lifestyle it can offer. More schools, retail areas, offices and residential communities are making it increasingly practical for families.
Nuvali is becoming more compelling as the lifestyle and convenience catch up with property values. For buyers looking for more space and a suburban environment, it is becoming a more reasonable option.
Finding the right deal
Today’s buyers are not necessarily hesitant but are patiently waiting for the right deal for them. Buyers are also looking more closely.
With more choices available, they can better distinguish between properties,
locations and market segments. They are ready to buy, especially when they see a real chance to upgrade, but they want the right property, at the right price and under the right terms.
The author is the country manager of RE/MAX Philippines
