By: Erica Sotto-Davis – @inquirerdotnet
Philippine Daily Inquirer / 05:52 AM February 17, 2018
With the proliferation of condominium developments everywhere in Metro Manila, it is practically impossible to walk into any shopping center nowadays without being handed a flyer for the latest high rise residential building in that area.
Often, these sales materials seem to be designed to attract the young market—a young professional wanting to start living on his or her own, a young couple planning to start a family, or a young investor looking to build a real estate portfolio.
The improving purchasing power of young adults aged 20 to 35 years, or the millennials, had a strong impact on the real estate high rise market—so much so that the strategies of condo selling have changed in recent years in favor of this influential demographic.
But what about the traditional form of real estate? What has been the behavior of the young generation towards the purchase of an actual piece of land?
A review of our buyers’ profile for lots revealed an interesting shift in the age demographic.
When it comes to lot sales, the 40-year-old and above demographic remained the leading buyers. However, the percentage of people aged below 30 years who purchased lots had increased to 15 percent in 2017 from 5 percent in the previous year.
Projects that contributed to this growth are those currently under development, allowing us to conclude that these buyers are most likely young investors who see the long term value of owning actual land.
The notable increase in the lower age group in such a short span of time may be a signal that there is great potential in actively marketing to the younger market. Why is land investing starting to look attractive to those aged 30 and below? Here are some trends in recent years that may explain this.
Emerging cities, infrastructure growth
There has been a rapid development of emerging cities outside Metro Manila. Commercial centers and shopping malls are quickly sprouting in these growth zones.
A big player in fueling such growth is the influx of outsourcing companies setting up shop in these areas. Better employment opportunities for young workers increase spending power and demand for housing.
Infrastructure is also a top priority of the current administration, as clearly outlined in the “Build, Build, Build” agenda and as supported by agressive government spending.
Massive expansion of roads and bridges seamlessly linking the archipelago is expected within the next few years. If executed well, this will speed up double time regional development of the Philippines, and help increase investor confidence in real estate.
Seeing this growth, young overseas Filipino workers are more enticed to purchase land in their hometown either as an investment or as a place to build a home for their families.
A famous real estate quote goes: “Don’t wait to buy real estate, buy real estate and wait.”
This quote is not new, but still holds true to this day. Real estate prices in the Philippines have been steadily rising over time and are still expected to continue to further increase.
With information so easily accessible to the young generation, it is much easier to create a more long term vision for themselves. The younger generation is more abreast with wealth accumulation and are able to see the value of buying land for future use, whether to build a house or to eventually sell for capital gains.
While city-living has attracted the young and the restless, there is still a certain charm to living in a home built with your preferences in mind. The dream to build a home is actually a life goal for some young people.
To understand that this is a lifetime commitment also sparks the urge to prepare for building a home in the future, which begins with acquiring the land. Purchasing property off the plan while prices are good and payment terms are budget friendly, is an irresistible offer for young people who are working towards their life goals.
Sta. Lucia Land, a trusted name in real estate and one of the pioneer developers in the country, continues to expand its reach all over the country, providing young Filipinos with options to live their dream.
Its ongoing developments in key cities of Batangas and Cavite offer stylish living at affordable, easy payment terms, thus allowing young people to start investing in their future.
Catalina Lake Residences is located right at the heart of Bauan, Batangas and is just a few hours’ drive from Makati via South Luzon Expressway and the Calabarzon Expressway. This will be the first lakeside community in Batangas.
Catalina Lake Residences will offer its future residents with the convenience of accessibility and the joys of leisure living amid nature and the relaxing water feature.
The Brookside at Summit Point Golf and Residential Estates, located in the booming City of Lipa in Batangas, is an exclusive premium community offering modern facilities within lush green landscape.
Sizes of residential lots in this phase range from 173 to 752 sqm, providing the young investor with premium options.
Saddle and Clubs Leisure Park, located in Tanza, Cavite, is an expansive development poised to be one of the most impressive destinations in that area.
Pockets of residential communities are designed within the 600-hectare project, and will offer its future residents with an intimate escape to leisure living.
The most recently completed development within Saddle and Clubs is the Aquamira Resort. Guests of the resort can enjoy an exciting water park and wave pool, as well as a relaxing stay in its well-appointed hotel rooms.
The author is head of advertising, promotions and training at Royale Homes Marketing Corp., an exclusive marketing network for Sta. Lucia Land.