MANILA - Younger property seekers are becoming more open to considering foreclosures and affordable properties as an investment vehicle, according to online property portal Lamudi.
In its report "The Outlook on the Residential Market: Pandemic Spurs Digital Adoption in Boomers and Gen X in 1Q 2021," Lamudi said the 25- to 34-year-old consumer segment shared a notable share of page views for repossessed properties at 47.19 percent.
"The trend reinforces millennials’ increased desire to manage their personal finances and pursue sound investments," Lamudi said.
"The significant interest in foreclosed properties indicates the age groups’ diligence in identifying opportunities to maximize their home-buying budget, or create other streams of income through short-term investment," it added.
In the first quarter of 2021, seekers within 25 to 34 also showed interest in condominiums at 15.71 percent. The same age group also contributes the largest lead share for condos, Lamudi said.
However, the company noted that the condominium market witnessed an uptick in demand from parents and executives in the 45 to 54 age range -- a trend driven by prolonged remote work and school.
The Gen X led in terms of page view growth for condominiums at 34.51 percent followed by those between 35 to 44 (30.37 percent).
The report also showed that apartments led growth for leads by property type in the first quarter of this year, increasing by 16.11 percent, compared to the same period in 2020.
"The uptick in leads for apartments may be driven by consumers’ desire for extra space without compromising the experience of living large in units smaller and more affordable than the single-detached house," Lamudi said.
Millennials led demand for this property type, contributing 42.76 percent of all leads for apartments.
"Its size is especially attractive to young professionals and couples planning to expand their family and wish to move in immediately," the online real-estate marketplace added.
Leads for apartments were most prevalent in Quezon City (36.74 percent), Manila (23.74 percent), Pasig (18.94 percent), Makati (12.12 percent) and Caloocan (9.09 percent).
Outside of the capital region, Lamudi said Cebu was the strongest apartment market at 34.14 percent of leads in the first quarter of 2021. In Mindanao, Davao received the most pageviews for its apartments but Cagayan de Oro received the most leads at 54.85 percent.
However, in terms of property types, house ranked first. It is followed by condominium, land, apartment, and commercial.
The report also revealed that the market for retirement-ready properties and family homes grew in the first quarter of the year, with property seekers aged 65 and up contributing a remarkably high increase in page views on the site. They were particularly interested in listings for land.
Land was dominant in terms of new supply on Lamudi in the first quarter of this year, as owners sought more liquidity, the company added.
"With the country’s population growing more rapidly, more property seekers freeing up cash, and consumer brackets with more purchasing power becoming increasingly active in the online real estate space, Lamudi has observed a more eager residential property seeker market," Lamudi said.
"Should planned vaccine rollouts take place in due time, household spending and the economy as a whole should inch towards full recovery."