Property market facing up to 30% drop on sales this year

Property market facing up to 30% drop on sales this year

Property developers are facing up to 30 per cent drop on sales this year, as the pandemic weakened the demand for property and stalled new projects in one of the Philippines’ booming economic sectors.

Subdivision and Housing Developers Association Inc. President Rosie Tsai said that prices are bound to correct, although not that much since lockdowns also increased logistics costs for companies now facing difficulty completing condominiums and collecting payments. She added that sales dropped by 30 per cent, but it could be more for smaller players.

“With the pandemic and the impending drop in demand for condominiums, which will also lack the POGO-push, we may see this trend (in asset prices) reverse in the medium term. Subdued inflation is reflecting of crippled demand,” said Nicholas Antonio Mapa, senior economist at ING Bank in Manila.

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