RE/MAX Philippines Country Manager Kenneth Stern presenting RE/MAX Philippines’ 2017 transaction data
Two areas in Makati City recorded the highest resale values for residential condominium units in the country, according to data released by the Philippine arm of global real estate brokerage firm RE/MAX.
Barangay San Lorenzo, which includes major commercial centers Glorietta and Greenbelt, posted the highest average resale value for its condominiums in 2017 at Php243,000 per square meter. Properties in the area sell from Php220,000 to Php300,000 per square meter in the secondary market.
The figures refer to prices that condominium owners can command when they sell their properties in the secondary market.
Two properties in San Lorenzo—Ayala Land Premier’s The Residences at Greenbelt and Park Terraces—were highlighted by RE/MAX as among the developments with the highest appreciation in capital value since their respective market launches. Prices of units in The Residences at Greenbelt grew 112 percent to Php225,000 per square meter since its launch in 2003, while condos in Park Terraces appreciated by 50 percent since 2009, reselling for Php240,000 per square meter in 2017.
Kenneth Stern said locations condos in San Lorenzo and Rockwell Center embody what condo investors are looking for in their next investment purchases: prime location and proximity to the business district and commercial areas
Similarly, Rockwell Center boasted high condo resale prices, averaging at Php207,670 per square meter in 2017. While units in Rockwell Center can sell for Php135,000 per square meter, some properties go for as high as Php360,000 per square meter.
RE/MAX cited Edades Tower, a Rockwell Land project completed in the area, for its high capital value appreciation. Selling for Php130,000 per square meter when it launched in 2009, units in Edades Tower sold at an average of Php250,000 per square meter in 2017, which signified a 92-percent price growth.
“Both these locations (San Lorenzo and Rockwell Center) embody what condo investors are looking for in their next investment purchases: prime location and proximity to the business district and commercial areas,” said Kenneth Stern, country manager of RE/MAX Philippines, in a statement.
One possible explanation for the high condo prices in Makati is the large demand from foreign buyers. According to RE/MAX, 30 percent of its clients who bought units in Makati in 2017 were foreigners, the largest among all Philippine markets the company is present in. Taguig is a close second, with 23 percent.
Officers of RE/MAX Capital, one of RE/MAX’s franchise offices in the Philippines, during the signing of its partnership agreement with GH Heritage Realty Inc. From left to right: Juan Alfredo S. Patag, president of RE/MAX Capital; Gary Hablero, President & CEO, GH Heritage Realty Inc.; Kerwin Yu, chairman of RE/MAX Capital; Jonathan Sim, partner at RE/MAX Capital; Atty. Charles Lejano, Director for Legal Affairs at RE/MAX Capital
Established in 1973 in the US, RE/MAX opened its Philippine office in 2012, where it has already put up 25 offices with around 200 real estate agents all over the country. On average, each Philippine RE/MAX agent sold Php243 million worth of properties and earned Php3.7 million in commissions last year.
Lorenzo Kyle Subido is a staff writer of Entrepreneur PH