1. In a unexpected twist, couples planning to tie the knot — while disappointed their wedding plans have been cancelled due to COVID-19 — are not letting that money sit idly. COVID-19 is not stopping them from building their life together emotionally and financially.

According to Rakhee Dhingra, CEO of Mortgage Savvy, “We recently had the pleasure of assisting a few first-time homebuyers who were scheduled to get married this summer. Unfortunately, due to the current environment they had to postpone their wedding. Based on the money they received back from their deposit cheques, they were able to allocate those funds towards buying their first home — one where their family can build long-lasting memories and grow into long-term.”

2. Another emerging trend is the backyard and home renovation. It is safe to say many are hesitant to travel this year until at least a vaccine is found and the result — a staycation option. Rakhee herself has been putting off her backyard reno in favour of travel but has decided this year the travel budget is being shifted toward home investment.

She went on to say, “during COVID-19, we’ve been able to support many clients on the refinancing front. By leveraging existing equity in their homes, many clients have been able to do some much needed home renovations. Doing so, not only gives them the opportunity to invest back into their home and appreciate the overall value of their property, but also design their home to reflect more of their current needs.”

Weeks of isolation has given us a very clear idea of where we spend our time in our home and highlights what has worked and what has been working as well. Our son Kev and his wife Ellen are literally expecting their second child in days. Currently living in a two-bedroom home is ideal for their current situation but are concerned as the family grows and did I mention their two dogs, their home isn’t going to be as ideal as it once was. Thoughts of moving were explored and then tempered by the sheer logistics of it during a pandemic and the costs. Their solution is to build on the existing structure with great savings from the land transfer tax costs combined with real estate fees being redirected towards their home renovation.

For families that are growing, backyards that have overgrown, and with more Canadians working from home, a renovation can be both financially savvy and emotionally satisfying.

3. Cottage life isn’t for everyone and travel to the cottage due to the pandemic has been restricted in some communities for now. However, that hasn’t stopped people from exploring in a low-interest rate environment a second or even investment property. Land, water, fresh air and no air travel can be very appealing. It is still early days however, based on the number of requests I’ve had — 3 to date from people thinking about buying in cottage country, you know waterfront supply and demand will soon kick in and prices will continue trend higher.

Real estate for most is our largest asset and our greatest liability. But our home is so much more, it is also a place of pride and comfort. During periods of difficulty hunkering down in your home can have a calming influence in a time when you feel you have little control over much else.

These may be just a few of the early and unintentional trends in real estate that have evolved out of a pandemic but that doesn’t mean that it is a bad thing.

The post Three real estate trends emerging from the coronavirus pandemic first appeared on Housing Market Marketing by Housing Market Group.

Several unexpected events have rattled the nerves of some, but there are still reasons to be optimistic about the Philippine property market. While 2020 may be a challenging one, Santos Knight Frank has identified seven Philippine real estate trends to watch for this year.

1. REITs take centerstage

   Real Estate Investment Trusts (REITs) finally got the green light in the Philippines earlier this year. Since then, Ayala Land filed an application to create a REIT subsidiary while DoubleDragon Properties Corp is looking at raising a substantial amount of capital via REITs. Santos Knight Frank believes that REITs will unlock a number of opportunities for the property market as more developers get involved.

2. BPO to remain strong

   The BPO sector has been a key driver for the office market, especially in Metro Manila. Joint research from IBPAP and Everest found demand for office space from BPO companies will grow 3-7 percent annually.
   
   “In 2020, we expect BPO demand to be strong, despite the limited amount of Philippine Economic Zone Authority-accredited office space. BPO demand is strongest in BGC and Pasay, where rents should be going up. Conversely, Ortigas and Quezon City may have more supply than demand, and rents will stay flat in those areas as the vacancy rates increase,” Morgan McGilvray, Senior Director, Occupier Services & Commercial Agency, Santos Knight Frank, said.

3. Co-working moves into Cebu

   Co-working is hardly new with several major operators active in Metro Manila. The sector is now growing in Metro Cebu. Santos Knight Frank estimates that 3 percent of the office market is occupied by co-working spaces spread across Cebu IT Park, Cebu Business Park and other buildings around the region.

4. BCG goes green

   More than 300 buildings in the Philippines have begun implementing LEED guidelines with half of this total already certified by LEED. Nowhere is the shift to green more evident than Bonifacio Global City. Santos Knight Frank reported that 100 percent of new office buildings in BGC are LEED-certified.

5. Metro Manila suburbs to be logistics growth hub

   The next wave of industrial and logistics real estate sector growth will most likely take place in the provincial areas to the north and south of Metro Manila.
   
   “The areas of Calabarzon and the corridor NLEX-SCTEX-TPLEX in North Luzon are prime spots for logistics and industrial real estate to grow. These would be the next hubs for distribution centers and warehouses,” Kash Salvador, Associate Director for Investment & Capital Markets, Santos Knight Frank, explained.

6. Demand for luxury homes still hot

   Metro Manila’s prime residential market remains hot as a limited supply of luxury residences can’t keep up with demand from the increasing number of Filipino ultra-high net worth individuals and foreign buyers.
   
   Knight Frank’s Prime International Residential Index ranked the Manila prime residential market as one of the fastest risers in the world, ranking eighth globally and third in Asia.

7. Developers embrace co-living

   Co-living has become a popular solution among young professionals who want to live near their workplace but can’t afford to buy or rent larger condo units. Several developers are tapping into the co-living segment with SMDC having launched MyTown and Ayala Land bringing The Flats to the market. More developers are expected to follow suit.

The post Here are 7 Philippine real estate trends to watch for in 2020 first appeared on Housing Market Marketing by Housing Market Group.