Developers are facing a 30% drop in sales as COVID-19 not only weakens demand for property, but also stalls new projects in one of the once booming economic sectors.
Prices are bound to correct, although not that much since lockdowns also increased logistics costs for companies now facing difficulty completing condominiums and collecting payments, said Rosie Tsai, president of the Subdivision and Housing Developers Association Incorporated, a group of 320 property developers including Ayala Land and SM Development Corporation.
Tsai said, “They are requalifying buyers again. Banks have to do it and we fully understand that they are double checking again if those borrowing still have jobs. So we also cannot collect. Sales dropped by 30%. For smaller players, it could be more.”
Low-cost shelters were the worth hit. With jobless migrant workers coming home in droves, real estate brokers said a full sales recovery is unlikely.