Housing sector

Housing sector on track to rebound amid pandemic—SHDA

LA Subdivision and Housing Developers Association, Inc. (SHDA) reported that the performance of the housing sector has improved over the past two years and the positive outlook will continue amid the ensuing Covid-19 pandemic. .

According to SHDA National Chairman May P. Rodriguez, growth in the residential segment of the real estate industry declined during the initial period of the health crisis, but then slowly recovered.

“In 2020, all private promoters [experienced a] downward trend. So sales weren’t as good [as before the health crisis] and collections were really challenging,” she said during SHDA’s first online Kapihan with the Department of Human Settlements and Urban Development (DHSUD), titled “DHSUD & Partner-Developers: Paving the Way Forward for Vibrant Housing Industry,” on February 16. .

Loss of jobs

She attributed this to the loss of jobs, causing some of their clients to skip their monthly amortizations. It also forced potential buyers to forgo the opportunity to purchase a home as there was also a shift in their priorities.

“But fortunately towards the end of 2020 and in 2021 I think a lot of developers would say that they are able to recover but not yet at the pre-pandemic level. So I think we can say that maybe the Developers in 2021 are doing about 50-75% of what they were doing before the pandemic, and the outlook is that they will continue to improve,” Rodriguez noted.

Despite the impact of the coronavirus on the real estate sector, she pointed out that many are still interested in investing in the housing sector as part of the “new normal”.

Based on her consultations with their buyers, she revealed that most of them found they needed to own a home due to many factors.

Work at home

One of the many reasons they want to own a home is because they have to work from home or just stay indoors during lockdowns to avoid contracting the deadly virus.

To respect health protocols such as maintaining physical distance, some must acquire their own accommodation, especially those who share a small space with their family.

Others choose to have their own accommodation close to where they work so they don’t have to travel far.

Rental category

The segment of houses for sale is not the only one to have performed well. Rodriguez pointed out that the rental category is also doing well.

“I think we can say that rental properties are booming as well,” she said. “Right now we know there are a lot of rental properties, and those who work are the ones who rent them out so they don’t have to travel, they’re close to where they work.”

This also applies to students who come from the provinces and want to study in Metro Manila.

“I think the dormitories we have in the schools are not enough. So their option is to really rent,” said the SHDA president. “There really is a market for rental housing on the private sector side.”

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