Upscale Real Estate Is Still Selling Despite the Pandemic
It looks like not even a pandemic can shake luxury real estate. Real estate has been pretty stable during these turbulent months, and based on Leechiu Property Consultants’ latest report, upscale units are still selling to its high-income market.
In Leechiu’s 2021 market report, it revealed that sales for units that are considered upper middle income, upscale, high end, and luxury are on the rise despite the pandemic. In contrast, units considered lower middle income or middle income are still being pulled down due to lockdown. This can be attributed to limited inventory and the general lack of access to funding.
Almost all types of property experienced a dip during the third quarter of 2020, but for the most part, units made for high-income individuals have largely recovered. According to Leechiu, most sales from the last 12 months of lockdown came from upper-middle-income units, followed by high-end properties, then upscale units. Luxury properties still experienced the lowest number of sales but they’ve been undaunted by the pandemic.
So what exactly differentiates a lower-middle-income home from an upscale unit? Low-middle-income units range from P1.2 million to P2.3 million, while middle-income units range from P2.3 million to P4 million. These were the units that are still struggling to return to pre-COVID sales levels.
The ones that are doing well are the upper-middle-income units, which range from P4 million to P7 million; upscale units, which range from P7 million to P12 million; high-end units, which range from P12 million to P68 million; and the luxury units that sell at P68 million or above.
The demand for residential units picked up by 5.7 percent in the first quarter of 2021. Capital values in Metro Manila condos have been only modestly affected by the pandemic, but sales for all properties have increased as buyers take advantage of more flexible payment options brought about by the pandemic. While capital values remain steady, the same can’t be said for rents, which have on the whole notably decreased in almost every city in Metro Manila.