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Increased Demand For Pag-IBIG Housing Loans Seen
- By Reggie Vizmanos
- Feb 22, 2024
- 2 min read
Increased demand for Pag-IBIG housing loans is evident, with most middle-market consumers now choosing to finance their dream homes outside Metro Manila through Pag-IBIG Fund, according to real estate brokerage and consultancy firm KMC Savills.
Pag-IBIG Fund data revealed a record-high release of PHP126.04 billion in home loans last year. I Photo: Judgefloro Wikimedia Commons
Associate Director Joshua De Las Alas of KMC Savills disclosed, "Due to high interest rates, more mid-market, working-class individuals are turning to Pag-IBIG Fund for home financing."
He noted that Pag-IBIG Fund data revealed a record-high release of PHP126.04 billion in home loans last year, financing housing units for 96,848 members. This amount marks a 7% increase compared to the PHP117.85 billion released in 2022.
De Las Alas further revealed, "Some buyers are opting out of pursuing condominiums because they realize upon turnover that interest rates are high. They find it more economical to loan from Pag-IBIG, with a 30-year repayment term and lower interest rates."
Additionally, the decreased need to live near workplaces has contributed to a slowdown in mid-market condominium sales.
He highlighted that in Metro Manila, approximately 40,000 condominium units remain unsold, half of which are from mid-market developments.
Meanwhile, KMC Savills anticipates sustained demand in the office market sector for 2024. However, an increase in vacancy rates is expected due to the completion of multiple office buildings this year.
CEO Joe Curran of KMC Savills added, "Upcoming office completions will stimulate leasing activities."
Data indicate that Bonifacio Global City remains a favored location for prime buildings, leading all submarkets with over 2 million square meters of office stock and an incoming office supply of about 182,000 square meters – the highest among all submarkets in Metro Manila last year.
In the industrial sector, KMC Savills noted that manufacturing and logistics are driving industrial hubs, with manufacturing accounting for 41% of the current tenant market.
