Lamudi Outlook Quarterly 1Q2023

1Q 2023 in Numbers

by A. H. Chiongbian

1) Listings priced above 20M attracted the most inquiries from property seekers out of all price segments.

The Outlook Quarterly highlights the latest online real estate search trends on Lamudi, the PH's #1 source of real estate demographic trends

3) Condos and houses attracted the bulk of inquiries from property seekers searching Lamudi.

2) Majority of rental inquiries were for properties in the more affordable end of the price spectrum, with rentals priced under 30K attracting the most leads.

4) Administrative centers continued to be the most searched cities in each of their respective island groups.

Nagulian Bacolod Tagum

Angeles Talisay Island of Garden Samal

# Metro Manila Luzon Visayas Mindanao

1 Quezon City Baguio Cebu City Davao City

2 Makati Antipolo Lapu-lapu Cagayan de Oro

Taguig Tagaytay Mandaue General Santos

Manila

Pasig

1Q 2023 in Numbers

by A. H. Chiongbian

5) Property seekers from Singapore contributed more leads than any other city outside the Philippines

The Outlook Quarterly highlights the latest online real estate search trends on Lamudi, the PH's #1 source of real estate demographic trends

6) There were a large share of searches for amenities related to ventilation and leisure of amenity searches were related to ventilation (e.g. air conditioning, balconies) of amenity searches were related to leisure (e.g. swimming pool, gym)

of amenity searches were related to connectivity (e.g. wifi)

Source: Lamudi.com.ph

of amenity searches were related to security (e.g. 24-hour security, alarm system)

1Q 2023 News Round-up

Boosting Tourism: VAT Refund Program and E-Visa Rollout

E-Visas and the Value-Added Tax (VAT) Refund Program for foreign tourists were approved for implementation last February. E-Visas, visas applied for and processed online, will be rolled out this year. Foreign tourists will receive a refund on the VAT they have paid for their purchases in the Philippines, which they would bring back to their home countries. These programs are aimed at boosting tourist arrivals in the country and promoting tourism investments.

9 Years of Lamudi: Celebrating Broker Wins and Industry Milestones

Stay up to date on the latest real estate industry news in 1Q 2023. Here are the highlights:

Economist Urges PH Government to Focus on Manufacturing, Infra

BPI global market economist Rafael Alfonso Manalili sees manufacturing and infrastructure as growth drivers and cushions to the increasing inflation rate. The upward inflation trend means that property seekers may need more time to think when taking out loans from banks as the cost of money increases. Manalili advises that focusing on investment spending, manufacturing and exports will allow the country faster growth and protection from external shocks.

The Rise of AI in PropTech

Lamudi honored outstanding brokers who adapted to the everchanging digital real estate market during the Lamudi Broker Awards Night 2023 last March. Brokers were rewarded for their post-COVID action plans, innovative lead generation strategies and customer-centric mindset.

Among the most notable emerging real estate tech trends are the use of blockchain, artificial intelligence (AI), and virtual and augmented reality. For developers and investors, AI’s Internet of Things (IoT) plays a huge role in speeding the process of construction by eliminating manual inspection and providing developers access with real-time monitoring. Transactions between developers and clients are also made easier with blockchain’s smart contracts, AI’s omnichannel engagement, and the Metaverse. Virtual reality (VR) and augmented reality (AR) make property hunting and selling more efficient for both parties.

1Q 2023 News Round-up

e-Travel: The New App Streamlining Travel Entry Requirements in the Philippines

The Philippines launched a new e-Travel app on December 5, 2022, which streamlines the process of obtaining travel entry requirements, provides real-time updates on COVID-19 testing and quarantine protocols, and offers other important information about the destination. The app aims to improve health and safety measures for travelers and the community, streamline the process for both travelers and authorities, and enhance the travel experience in the country.

Contact Center Industry Sees RemoteOnsite Work Ratio Balancing Out

The Contact Center Association of the Philippines (CCAP) sees hybrid work arrangements becoming the standard work operation model, as reported by BusinessWorld in March. CCAP board member Tonichi Achurra-Parekh expects the current 60% on-site, 40% remote ratio evening out in the future, towards hybrid models.

Stay up to date on the latest real estate industry news in 1Q 2023. Here are the highlights:

PEZA Investments Surge in 1Q 2023

The Philippine Economic Zone Authority (PEZA) reported a 54% increase from 1Q 2022 to 1Q 2023. As of 1Q 2023, approved investments were valued at P12.53 billion. The growth was by buttressed by a steady flow of investment in the semi-conductor and IT industry, and complemented by investment in emerging sectors such as vaccines and life sciences, electric vehicle batteries and financial technology, among others.

Nowhere but Up: REITs in PH Continue to Expand

Philippine Real Estate Investment Trust (REIT) companies announced portfolio expansion plans throughout 2023. Ayala Land's AREIT announced plans to acquire six office buildings in Cebu this year, while Megaworld's MREIT is expected to add 220,000 sqm of gross leasable area by 2024.

1Q 2023 News Round-up

Areas of Pabahay Program’s First 1 Million Houses Revealed at NREA’s Online Forum

The Pambansang Pabahay para sa Pilipino Program aims to build one million houses every year throughout the current administration’s term or a total of six million homes to address the housing backlog of the country. Cities that are included in the first 1 million units like Quezon City, Angeles City, Cebu City, Cagayan de Oro, and Davao City are among the most searched locations on Lamudi.

Convenience is Key: The Value of Customer Feedback in the Real Estate Industry

During Lamudi's broker networking night of the year on March 29, 2023, real estate players shared their experiences navigating the digital landscape of real estate. The event, held in partnership with Tonik, covered the importance of personal connections and adding a 'human touch' to online marketing and sales strategies in an increasingly automized industry.

Stay up to date on the latest real estate industry news in 1Q 2023. Here are the highlights:

Lamudi will be holding its 2023 property fair, co-presented by IKEA, at Trinoma Mall from July 7 - 9, 2023. The event will be Lamudi's first in-person property fair in three years Learn more here

Build Better More: A Guide to the 2023 Philippine Infrastructure Priority List

by A. H. Chiongbian

What is Build Better More?

The Build Better More is the Pres. Ferdinand Marcos Jr. administration's PHP9 trillion infrastructure program. Similar to the Duterte administration's Build Build Build, the

What kind of projects are in Build Better More?

Build Better More prioritizes physical connectivity (e road networks) and water

Who are funding these projects?

40% of projects in the infrastructure priority list were funded via Official Development Assistance (ODAs), or grants administered to promote social and economic development. These are usually funded through multilaterals and governments from foreign countries. Build Better More also strongly promotes the use of public-private partnerships (PPPs), a funding agreement between the government and a private firm. Roughly 25% of projects were PPPs.

How will these projects impact real estate?

Property investors pay as much attention to public infrastructure as they do real estate. The development of roads, bridges, airports, mass transit, railways, walkways, dams, and utility infrastructure influences the shape of communities and the value of properties situated therein. The presence of a train station may up the value of residential units located a brisk walk away, while the construction of an airport in a region previously accessible only through land may signal more tourism and the development of related markets. The establishment and upgrading of utility infrastructure in provincial areas improves the quality of life of its residents, and encourages further investment. These are the building blocks for services and public amenities that transform spaces into places where people wish to live, work and play.

Click here to explore the map

Where are these projects located?

The projects in the priority list were located in various regions in the Philippines, but were most heavily concentrated in the National Capital Region (NCR) and Central Luzon.

The following national projects either did not have a specific geographical beneficiary or are to be implemented across the country. Click here for the full list.

There have been heavy investment in easing land and air travel throughout Luzon, with the current infrastructure priority list including railway extensions improving access from the north of Luzon to the south of Luzon. This includes the Metro Manila Subway Project the first underground rail in the country.

There were also several irrigation and water supply projects throughout Luzon, and three healthcare facilities in the works.

Regional Highlights

The allocated budget for the New Manila International Airport was P740 billion, the highest determined budget for projects in Luzon.

Three segments of the South Luzon Expressway Toll Road 4 - extending from Sto. Tomas, Batangas to Tiaong, Quezon - is expected to be completed by December 2023.

NCR had more projects than any other region in Luzon, and the entire Philippines.

Click here to explore the map

Visayas 610K 50K Pageviews on Lamudi Listings on Lamudi

There are eleven road and bridge projects throughout Visayas, with several aiming to link islands and provinces. These include the Panay-Guimaras-Negros Inter-Island Link Bridge, the Iloilo-Capiz-Aklan Expressway (ICAEx), and the 2nd San Juanico Bridge Project.

The development of these throughways may spark more region-wide commercial and industrial opportunities as logistical issues are eased. Container projects in Cebu and Iloilo were also identified as priority projects.

Regional Highlights

The Panay-Guimaras-Negros Inter-Island Link Bridge has an allocated budget of P189.53 billion, among the most heavily funded in Visayas.

Stage II of the Jalaur River Multipurpose Project, the National Irrigation Administration's flagship project in Western Visayas, is scheduled for completion by December 2023.

Cebu had more projects than any other province in Visayas, including the Cebu Bus Rapid Transit, Cebu-Mactan Bridge and Metro Cebu Expressway.

Click here to explore the map

Mindanao

200K 10K Pageviews on Lamudi Listings on Lamudi

Priority projects in Mindanao include three flood control projects, three airports, three water resource projects and two seaports. Completion of such projects may encourage more tourism as access is increased and utilities services improve.

Regional Highlights

The budget for the Davao Public Transport Modernization Project increased to P80 billion in 2023. It will involve 1,000 buses and bus stops spread across Davao City.

The Panguil Bay Bridge is roughly 60% done as of 1Q 2023, and is scheduled to open by the first half of 2024.

Davao del Sur had more projects than any other province in Mindanao, including a port, a flood control and drainage project, and public transport modernization programs.

Property Demand in Southern Cebu Climbs Amid Transit

Development

In 2022, the most searched topics related to “Cebu” by Google users the Philippines were all connected travel and transportation. Terms such as ‘airline’, ‘airport’, ‘flight’, ‘ferry’, ‘ticket’, ‘baggage’ were the words most associated with Cebu, according to Google search trends. Travel to and throughout the island has been uptrending alongside the development of infrastructure projects such as the the completion of the province’s first tollway last year, the Cebu–Cordova Link Expressway (CCLEX), and more recently, the groundbreaking of the Cebu Bus Rapid Transit (BRT) project

systems, a bus rapid transit system operates on a dedicated road network – similarly to how light rail transit runs on dedicated tracks. The project includes a 16 kilometer transit route traversing Cebu City, Talisay, and other towns in Cebu Province. It involves a total of 250 buses, 17 stations, 76 bus stops, a daily capacity of 60,000 passengers, a roundabout facility in Cebu IT Park and a depot in South Road Properties (SRP). The development of the project is expected to give citizens and visitors more quality public transportation options around the south and central portions of the city, as well as reduce travel time and increase economic productivity. Phase 1 of the project is expected to be fully operational by the second quarter of 2025.

238%

Jan. 2023 vs. Jan. 2022

Year-on-year pageview grrowth

36%

Jan. 2023 vs. Jan. 2022

Year-on-year pageview growth

10%

Jan. 2023 vs. Jan. 2022

Year-on-year pageview growth

Lamudi sees more interest in properties in areas where BRT stops will be situated growing over the next few years. Monthly pageviews in January 2023 increased 10% year-on-year in Talisay, 36% year-on-year in Mambaling and 238% year-on-year in Bulacao.

Cities in Cebu were among the most high-ranking in Visayas from January 2022 to January 2023, with Cebu City ranking first, Lapu-lapu ranking second, Mandaue ranking third, Talisay ranking fifth and Minglanilla ranking ninth. With mobility for residents of these locations improving, land values in these areas are seen to improve along with more economic activity and investment.

Key Takeaways

1 Online property search behavior on Lamudi has remained consistent.

Luxury properties and affordable rentals continued to perform strongly. Major administrative hubs attracted the most leads in 1Q 2023.

2 Singapore was the leading source of overseas inquiries. Growth can be expected in the industrial and hospitality sectors throughout 2023.

Singapore was once again the overseas location that contributed the most pageviews and leads to Lamudi. Makati followed by Quezon City were the cities most inquired by property seekers from Singapore.

3 Opportunities for real estate market abound as government sets new infrastructure priorities.

These are driven by more foreign direct investments following the approval of Regional Comprehensive Economic Partnership, and a revitalized tourism industry supported by travel promos and eased regulations.

4

The release of the 2023 infrastructure priority list signals prospecting property buyers and sellers to closely observe the progress of identified projects in the locations they have interest in as they influence the value of their prospective investments and sales.

5 Cebu Province has consistently been among the top ten most inquired locations on the platform

Lamudi expects more interest from property seekers in areas where the Cebu Bus Rapid Transit stops will be located. Lamudi sees more online real estate activity expand as physical connectivity improves.