Interesting articles updated daily

To describe 2020 as unprecedented would be an understatement.  For quite a time, everything seemed uncertain. Most have been fearful; but nonetheless, hopeful.   Ortigas, as a Central Business District also saw the slowing down of activities just like in bigger business districts. Work from home and the departure of some POGO tenants resulted to some vacancies both for office and residential units. Ortigas Center is home to prominent malls in the country; and like tourism, the mall industry felt the brunt of the pandemic as people stayed away from public areas. 

Slow as it is in 2020, there have been continued real estate sales. Ortigas Land launched The Galleon Residences on March 1, 2020 almost right before the lockdown.  At first, buyers who reserved units were hesitant to continue with their bookings.  Since construction stopped during the lockdown, buyers were wary about the timely delivery of units. But as the economy slowly opened and when constructions went on full-swing, the buyer’s confidence bounced back.

There were defaults, yes; but developers have been very lenient as compared to pre-pandemic times. The Bayanihan Act was very helpful. Banks, developers and landlords alike accepted restructuring of payment terms. Developers were also considerate, as they were not quick in imposing penalties; and they were open to customized payment schemes. These reduced the number of defaults; and more importantly, it created a win-win situation for sellers and buyers. 

Similarly, the crafting of easy payment terms and no down payment schemes enticed buyers.  By the end of 2020, sales of high end condominiums started to pick up.  Ortigas Land continuously have sales; in fact, the Empress, the latest residential development in the Capitol Commons Area saw its price increase as movement of inventory became brisk. Ditto with the Maple project in the Ortigas East Area, the inventory has been moving, positively. Ortigas even posted a billion sales for the month of February.

But it is not just the Ortigas Land projects that are moving.  DMCI launched its Alegra in January and SM launched Gem in 2020.   Both continue to have bookings, thanks too to their version of easy payment terms. Certainly, the industry thrived even with the pandemic.

Aside from the developer’s flexible terms, there have been several inquiries for distressed properties. Investors finding their financial instruments’ interest rate so low are looking for more rewarding investments. Indeed, there have been several inquiries for foreclosed properties and rush sales.