Wednesday, April 14, 2021

Residential sales back on track in Q1 fueled by upper middle class, luxury units

 Article by Bilyonaryo
 
 
The luxury and upper middle-class residential real estate markets are proving to be extremely resilient and more than capable of withstanding the current circumstances.

According to Leechiu Property Consultants Inc., residential land demand picked up for the second quarter in a row with unit sales rising 5.7% in January to March, driven by upper middle class and wealthy consumers.

Demand for luxury residential space (P68 million and above) remained robust with a total of 44 units snapped up during the period as against 48 units in the fourth quarter last year.

“Recovery in the upper middle to luxury segment is particularly strong..Capital preservation has driven many investors to increase their assets in real estate, which have proved resilient throughout the pandemic,” LPC said.

Plans to purchase a primary and secondary home have trended upward in the face of mobility restrictions and other disruptions brought on by the Covid-19 pandemic.

“Demand remains for premium units starting at P4 million and above and is continuously increasing. However, limited inventory and lack of access to funding has slowed down sales demand of lower and middle income units,” LPC said.

The property consultancy firm expects the rest of the segments to follow suit amid lower interest rates and access to funding.

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