More Filipinos are showing a growing interest in getting second homes, especially in residential leisure condos outside Metro Manila.
More and more people are buying units in Pampanga, Batangas, specifically areas like Laiya and Nasugbu, and Tagaytay, with the latter being the most preferred location for a second home.
By Q3 2023, Tagaytay and Batangas exhibited the highest concentration of unit supply, with 8669 total units for Tagaytay, while Cavite has 7561 units. Out of the 30,281 new supply from Batangas, Bulacan, Cavite, Laguna, Pampanga, and Tagaytay, data showed 28.34% is attributed to Tagaytay while Cavite took up 24.22% of it.
With its proximity to Taal Lake, climate, and ongoing development of lifestyle hubs and shopping centers, Tagaytay remains to be a top choice among buyers looking for second homes. In 2023 alone, Cavite LGU reported 14,338,668 same-day visitors in September.
Apart from the robust tourism of the area, demand for residential units in this area is evident through the consistent price increase from 2020’s average selling rate of Php 92,411/sqm to Php 110,276/sqm in 2023.
Among Metro Luzon provinces as locations for second homes are
Pampanga, Bulacan, Cavite, Tagaytay, Laguna, and Batangas.
Cavite ended Q3 2023 with 24.96% of the total new stock for Metro Luzon, showcasing itself as a formidable option for a second home location. It is still an up-and-coming location, with an average selling price of Php 90,018/sqm, one of the lowest for Metro Luzon.
Pampanga’s price per sqm ranked the highest at Php 126,374 per month. Figures showed buyer demand in Clark, Pampanga with notable places such as Clark International Airport being the gateway for Filipinos living in Central and Northern Luzon.
Home away from the Metro
As one of the key economic centers in the Philippines, Metro Manila remained the homestead of CBDs in Luzon. To keep work and life balance seamlessly, more and more people are living on the outskirts of Metro Manila, such as Bulacan, Cavite, and Laguna.
Despite the growing trend of living close to the metropolis for work, these three provinces still showed the lowest average price per unit in Metro Luzon, with 3.7M for Laguna; 2.9M for Bulacan; and 2.8M for Cavite. This explains that residents see these locations as temporary homes either for work or leisure purposes.
Meanwhile, rates in Pampanga, Laguna, and Tagaytay tell a different story. Pampanga emerged with the highest selling rate in the sought-after Metro Luzon areas, with a weighted average selling rate of Php 126,374/sqm. Tagaytay ranked second at Php 122,500/sqm followed by Laguna at Php 117,269/sqm.
The data underscores a clear preference among individuals for residences situated in proximity to tourist destinations, particularly those featuring expansive sandy beaches or vast terrains. In fact, these prices have gone up by 19.33% since 2020 in the following areas, driven by a growing demand for second homes, particularly in the form of residential leisure condos.
Residential leisure trends
By Q3 2023, 42% of residential units sold in Bulacan, Pampanga, Cavite,
Laguna, and Batangas were residential-leisure properties. Tagaytay and Laiya top the list.
Recent trends also revealed a growing preference for residential leisure in Metro Luzon areas such as Batangas, Cavite, Laguna, Pampanga and Tagaytay.
Investors purchased units at DMCI’s Solmera Coast in San Juan, Batangas and SM Prime’s Freia at Pico de Loro in Nasugbu, Batangas, which contributed 41% of sales in the total units sold.
In April 2023, 688,569 domestic travelers were recorded to have visited San Juan, Batangas alone. Nasugbu housed a total of 268,022 travelers, while Tagaytay had 436,508 tourists. These figures showcase the booming tourism industry in these destinations, underscoring their popularity among visitors.
This, in turn, has led to a 93% absorption rate in Q3 2022, 92% for Q1 2023, and finally, 93% for Q3 2023, this trend is expected to persist until 2024.
In a nutshell
The Philippine real estate market is currently experiencing a robust phase characterized by an exponential demand for second homes and residential leisure condominiums outside the metropolitan areas.
In addition to the burgeoning appetite for luxury residential spaces in the Metro, there is a discernible shift in consumer preference, where individuals not only prioritize primary residences but also actively seek second homes outside of Metro Manila, designed for relaxation and leisure.