Global uncertainties, highlighted by the Middle East crisis, pose challenges to the Philippine property market. Periods of political and economic unrest affect demand in a cyclical economic segment like real estate.
Given some challenges in the Metro Manila condominium segment, several developers have been proactive in tapping demand outside of the country, especially the Middle east. However, the ongoing conflict between the United States, Israel, and Iran have compelled some developers to shelve their roadshows in the Middle East.
But this isn’t hampering property firms from mounting roadshows outside the country. In fact, for some, now is an opportune time to ramp up marketing efforts in other key markets such as Singapore, Hong Kong, Japan, and North America. My recent trip to Singapore with Ayala Land enabled me to interact with the developer’s Singapore-based clients, including Filipino and Singaporean buyers. The continued interest in property is in fact supported by the central bank’s survey, indicating that a greater percentage of remittance-receiving households are in fact setting aside money for real estate purchases.
While our kababayans continue to acquire condominium units, I have noticed a more proactive approach to a more diversified form of investing. Filipinos in Singapore have long diversified their investment portfolios, from condominium to house & lot to lot-only purchases.
Cashing in on thriving horizontal developments
The Philippine residential real estate market, particularly the horizontal housing segment encompassing house-and-lot (H&L) and lot-only developments, has demonstrated remarkable resilience and sustained growth in recent years. Post-pandemic, end-user demand has remained robust, reinforcing the strength and long-term viability of horizontal residential projects. This trend has been especially prominent in areas outside Metro Manila, where demand continues to be driven by lifestyle shifts, infrastructure development, and changing investment preferences.
Even during the height of the pandemic, house-and-lot (H&L) and lot-only developments recorded steady take-up rates and consistent price appreciation. This performance highlights the resilience of the horizontal housing segment compared to other residential asset classes, particularly condominiums. As emphasized by Colliers Philippines, the end-user market has been the primary driver of this sustained growth. Buyers increasingly prioritize space, privacy, and community features, all of which are more attainable in horizontal developments than in high-density vertical projects.
Colliers’ residential survey data further reinforces this trend. Nearly 30% of respondents favored lot-only properties for their next residential investment, while 18% preferred house-and-lot units. Combined, these figures suggest that almost half of prospective buyers are inclined toward horizontal living arrangements. This preference is particularly pronounced in high-growth regions where major developers are actively landbanking to meet future demand.
Ex-Metro Manila Expansion and the Crucial Role of End-Users
The popularity of horizontal residential developments is especially evident outside Metro Manila, where developers are aggressively expanding their presence. These areas benefit from more affordable land, larger lot cuts, and the opportunity to develop master-planned communities with generous open spaces. Affluent local buyers, as well as Overseas Filipinos Workers (OFWs), play a crucial role in sustaining end-user demand. OFWs, in particular, represent a stable and significant source of residential demand. With steady income streams and long-term plans to return to or settle in the Philippines, many OFWs see house-and-lot and lot-only properties as ideal investments for future use. The flexibility offered by lot-only developments—allowing buyers to design and build homes at their own pace—adds to their appeal.
Among horizontal housing options, the lot-only segment has garnered growing attention from investors and end-users alike. Several factors contribute to its attractiveness. First, certain condominium markets have experienced price corrections, prompting buyers to reconsider traditional vertical investments. Second, rental yields for Metro Manila condominium units have softened, reducing their appeal as income-generating assets. As a result, investors are increasingly exploring alternative options that offer better long-term capital appreciation.
Infrastructure improvements have also played a major role in boosting the appeal of lot-only projects. Enhanced connectivity between Metro Manila and key areas in Central and Southern Luzon has expanded the feasible residential radius for workers and families. Expressways, railways, and road network upgrades have significantly reduced travel times, making suburban and peri-urban locations more accessible and desirable.
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