It can be tough to compare condo prices in the Philippines nowadays. Condos in Metro Manila alone run the gamut of price ranges, varying widely even within the same city or building. When developers present prices in unclear ways, you also run the risk of preparing too much or too little as you figure out how to apply for a loan for this investment.
If you worry about overpayments and poor investments due to unhelpful cost breakdowns, you’re not alone. Buyers like you deserve to have clear Real Estate Comparison tools that help you compare prices per square meter (sqm) alongside inclusions, add-on fees, and financing options – all so that you can make smarter condo investment assessments.
Learn how much condos really cost and understand how developers present prices with Condo Arena. Check out this guide to discover how you can make smart and fair decisions for your property right now.
Understanding the real cost behind condo prices
Prices for properties on your Property List can be structured in many ways, varying greatly among projects, unit types, and developers. They don’t just reflect the size of your chosen unit – they also reflect the location of the development, its amenities, and tons of other factors that you’ll learn about with this section.
Key components of property pricing
The key components of your unit’s cost include the following:
- Price per sqm (PPSM) - Generally, PPSM is the standard measure for comparing units in the Philippines. You can find common ranges like Php150,000 per sqm to Php300,000 per sqm for properties in Metro Manila, based on reports from industry assessors like Global Property Guide or Colliers.
- Unit size and layout - The size and layout of your unit can also affect its cost. If your property is objectively small but makes use of its layout efficiently, it can make the unit feel a lot larger, affecting its perceived value.
- Developer reputation - Established developers price higher than unknown companies because they can promise more quality consistency and a greater resale outlook. Basically, you can trust them to deliver on their promises because these condo developers built a good reputation that has lasted for many years.
- Inclusions and finishes - Inclusions and finishes can usually be found in units with more complete interior design. Fully furnished or semi-furnished units are therefore more expensive than bare units, since they offer more complete home furnishings.
- Amenities - A development with more to offer usually costs a lot more too. If the building has amenities like pools, gyms, co-working spaces, and security upgrades, sellers can offer these as benefits and increase their overall pricing.
- Location - Buyers want convenient lifestyles, and developments located near central business districts (CBDs), transport hubs, schools, or malls can offer such convenience. Therefore, developments with good locations can price their units higher than their competitors in less accessible areas of the metro.
How to make fair, apples-to-apples price comparisons
With all these key components, you can have a better idea of how to make fairer, structured, and systematic comparisons of selling prices across multiple listings and developers. Transparency can vary greatly among developers, so you need these kinds of condo buying tips to ensure you’re making smart choices for your real estate investment.
Essential steps for a proper price comparison
Here are the next few steps you can take to compare condo prices in the Philippines and choose the best unit for your investment needs:
- Convert all prices to PPSM - As you list your chosen properties, standardize all prices to PPSM. This is so you can have a common baseline on which to compare costs across all your options.
- Adjust for inclusions - Once you’ve established the baseline cost of the unit, adjust the price for inclusions. These can include the level of furnishing done for the unit, the inclusion or exclusion of parking, and even the number of appliances already available in the unit.
- Account for financing schemes and their real cost - Ask your real estate agent about their condo financing options, and see if those options have additional fees baked into them. Compare options like housing loans and in-house financing schemes to see which ones work best for your budget limitations.
- Compare payment terms - Once you’ve chosen a financing scheme, study that option even further to see if you have options for terms of payment. Ask about the timeframe for down payment and amortization, and see if there’s additional interest on top of the payments you’ll be doing over the offered period of time.
- Review estimated total cost over the payment period - Review all the costs of your overall condo investment based on how much you’ll really be paying throughout your entire payment period. Remember to include interest rates, insurance policies, and other additional fees so that you have a clear idea of what you’ll be paying.
- Check ongoing promotions or discounts - Remember to consult with your real estate agent on potential promotions or discounts that you can avail throughout the payment period. Don’t leave any stone unturned and get all the benefits you can from this major financial commitment.
- Factor in location-based value appreciation - Don’t be afraid to think about the potential value appreciation and resale of your unit in future residential property markets. If you think your location will make for a great community in the future, use that as a factor when it comes to considering properties in this process.
Throughout all these essential steps, always remember to get in touch with a property lawyer, an experienced real estate agent, or a financial adviser first. By working with an expert in the field, you’ll gain all the insights you need to make the best investment decisions possible for your property buying needs.
Photo courtesy of Mikhail Nilov via Pexels
Finding more condo investment tips
Feel like you need more tips to make a thorough assessment of your options? Then check out these final reminders for your real estate journey:
- Standardize your price comparisons. Start by assessing units based on their PPSM so that you have a baseline mode of comparison among all the different options you have across the Philippines.
- Dive deeper into your chosen option. Once you have a general idea of the unit you want, explore everything from potential discounts to financing options so that you know exactly how much that property will cost prior to purchase.
- Connect with real estate experts. Don’t be afraid to ask for help from property agents, lawyers, and financial advisers to get the advice you need for this major financial commitment.
Ready to find the perfect property for your budget? Then check out Condo Arena to discover all your potential options and utilize our comprehensive comparison tools for your next purchase.
Sources:
https://condoarena.com/properties
https://condoarena.com/compare
https://condoarena.com/blog/buying-condo-tips
https://condoarena.com/blog/impact-condo-developer-reputation
https://condoarena.com/blog/manage-condo-down-payment
https://condoarena.com/blog/condo-financing-simplified
https://www.globalpropertyguide.com/asia/philippines/price-history
https://www.globalpropertyguide.com/asia/philippines/square-meter-prices
https://www.investopedia.com/financial-edge/0410/the-5-factors-of-a-good-location.aspx
