Thinking of buying a condo unit in 2025? Some things to consider

Many people and families are wondering whether now is the right time to make a real estate investment by buying a condominium unit, especially with reports of an oversupply in the market.

According to data from Leechiu Property Consultants (LPC), the oversupply of condominium units in Metro Manila reached a staggering 34 months as of November, prompting potential buyers to reassess their plans.

Chelsea Perino, managing director for global marketing and communications at The Executive Centre, suggests that purchasing a condominium in 2025 may indeed be more economical, owing to the basic principles of supply and demand. “If it’s taking that long, then theoretically the rates could come down because that’s what just naturally happens in the market,” she said.

However, Perino emphasized that prospective buyers should consider more than just market values. “You need to understand your purpose: Are you buying for your family as a residence, or is it an investment property?” she said.

From an investment perspective, buyers should also think about their long-term plans: “Are you planning on renting it out? Or do you want to keep it and sell it later for a higher return?”

Perino noted that shifting work and lifestyle dynamics heavily influence these decisions.

Key factors to consider when purchasing residential property include the proximity to your workplace and your career plans over the next three to five years. “What are your long-term goals? That will impact whether or not it makes sense,” she added.

Additionally, potential buyers should investigate current and historical real estate rates in the area where they wish to buy. “If I’m planning to buy it for myself, like to live there, it should be okay. I think it would be an interesting proposition,” Perino remarked, stressing the importance of understanding the area’s market dynamics.

She also cautioned against simply choosing a property based on aesthetic appeal. “Even if a condominium matches your dream design, you need to check the city where it’s located. Different neighborhoods within a large city like Manila will have varying market conditions,” she said.

The renting vs. buying dilemma

As 2025 arrives, many are grappling with whether to continue renting or to make the switch to homeownership. Perino asserts that for some, renting may still be a sensible choice. “Investing in a property isn't always the best route for everyone. For me, it doesn’t make sense to invest the money required to purchase an apartment that I truly want to live in,” she explained, reflecting a growing sentiment among renters who often view their rental payments as wasted money.

However, she urges a mindset shift: “Think of it as investing in your lifestyle and profession. By renting, you’re creating an environment conducive to achieving your goals.”

For those considering future investments, Perino suggests exploring the option of purchasing a vacation home instead. “A vacation home allows for flexibility. It doesn’t matter if it remains unoccupied for six months; you can enjoy it, rent it out on platforms like Airbnb, or share it with family and friends,” she noted, providing a balanced approach to real estate investment.

When comparing condominiums to houses, Perino acknowledges the complexity of the housing market in places like the Philippines. “It really depends on your needs and the neighborhood. Are you buying for your family or as an investment?” she advised.

Location is also paramount. Drawing from her own experiences in Hong Kong, Perino highlighted the significance of proximity to airports and work engagements. “I prioritize being close to my meetings. Assess commuting times and local amenities,” she emphasized.

For prospective investors, understanding the target market is crucial. “If you’re thinking about buying a townhouse, consider who would live there and what price point makes sense—are you targeting young professionals or families?” she advised.

Ultimately, Perino concluded that the decision of whether to rent or buy depends on a multitude of personal and market factors. “It’s about piecing together what works for you in your specific context,” she said, leaving potential buyers and renters with much to contemplate as they navigate their living situations in 2025.

Insights from the PropertyGuru Asia Real Estate Summit

Perino recently participated as a speaker at the PropertyGuru Asia Real Estate Summit (ARES) 2024, held in Bangkok from December 12 to 13. The event highlighted invaluable insights from industry experts and global delegates, focusing on the theme of “Future Cities.”

The 10th edition of ARES gathered over 300 participants, including property developers, industry professionals, and prospective buyers. It culminated in the 19th Annual PropertyGuru Asia Property Awards, celebrating outstanding developers worldwide, from countries including Japan, Australia, Indonesia, Malaysia, Thailand, and the Philippines.

The Philippines achieved remarkable success at the PropertyGuru Asia Property Awards, securing several regional awards across various categories, including Design, Development, and Developer awards. Notable finalists and winners included projects from Aboitiz, Robinsons Land, Federal Land, Alveo Land, Lanco Pacific, and Mitsukoshi BGC.

The prestigious ‘PropertyGuru Icon Award’ was presented to Henry Sy, Jr. of the SM Group for his exceptional contributions to the broader Asian property market. — BM, GMA Integrated News