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Guide To Buying Pre-Selling Condos in Metro Manila: A Smart Investment for Homebuyers and Investors

Pre-Selling Condos in Metro Manila
Pre-Selling Condos in Metro Manila

Pre-selling condos in Metro Manila are rapidly gaining popularity among Filipinos and investors alike. With the capital region’s booming economy, expanding infrastructure, and growing demand for residential spaces, purchasing a pre-selling condo is becoming an attractive option for both long-term residents and those looking to earn rental income. However, as with any investment, it's essential to consider the location, risks, and benefits before making a decision.

In this article, we’ll discuss the advantages of buying a pre-selling condo, highlight some of the best areas in Metro Manila for investment, and point out the locations you should avoid due to potential risks like flooding and crime.

What Are Pre-Selling Condos?

A pre-selling condo is a residential unit that is sold by a developer before the construction of the building is completed. Buyers purchase units based on architectural plans, renderings, and model units, with the actual completion usually taking place a few years down the line. Since these units are sold before completion, they are often offered at significantly lower prices compared to ready-for-occupancy (RFO) units, making them a popular choice for savvy investors.

Why Buying Pre-Selling Condos in Metro Manila is a Smart Move

There are several reasons why pre-selling condos are a great investment, especially in a thriving urban hub like Metro Manila:

  1. Lower Prices: Pre-selling condos are generally 20-30% cheaper than RFO units. This gives buyers the advantage of purchasing a property at a lower price, with the opportunity for its value to appreciate as construction progresses and the development nears completion.
  2. Flexible Payment Terms: Developers typically offer more lenient payment schemes for pre-selling condos. Many provide staggered payments with zero interest during the construction period, making it easier for buyers to manage their finances.
  3. High Potential for Capital Appreciation: Metro Manila's real estate market continues to grow, driven by infrastructure projects and business developments. Pre-selling buyers can benefit from significant property appreciation by the time the condo is completed and ready for occupancy. For example, in the Bonifacio Global City (BGC) area, condo values have surged by 10-15% annually due to its rapid commercial expansion .
  4. Customization Options: Buyers of pre-selling units often have the opportunity to select finishes, layouts, or upgrades during the construction phase, allowing for greater personalization of their future home.

Best Areas to Buy Pre-Selling Condos in Metro Manila

1. Bonifacio Global City (BGC), Taguig
BGC continues to be one of the most sought-after locations for condo buyers in Metro Manila. Known as the financial and lifestyle hub of the Philippines, BGC is home to multinational corporations, upscale malls, restaurants, and green spaces. It’s also one of the most pedestrian-friendly areas in the city. With the development of several new residential projects, including pre-selling condos, BGC is a prime location for both investors and families looking for modern living.

2. Makati Central Business District (CBD)
Makati has always been the heart of Metro Manila’s business and commercial activities. As one of the top financial centers in the country, it continues to attract a steady influx of expatriates, young professionals, and corporations. New condo developments in Makati CBD offer easy access to offices, malls, schools, and healthcare facilities, making it a top choice for investors looking for properties with high rental demand.

3. Ortigas Center, Pasig City
Ortigas is another key business district that’s rising in popularity among pre-selling condo buyers. With its central location, affordable condo options, and proximity to major roads such as EDSA, Ortigas is a great option for both end-users and investors. Upcoming infrastructure projects like the Metro Manila Subway are expected to further enhance its accessibility, making it an ideal investment choice for the future .

4. Bay City, Pasay
Pasay’s Bay City, home to the Entertainment City and the Mall of Asia Complex, is quickly emerging as a residential hotspot. This area is particularly attractive due to its proximity to Ninoy Aquino International Airport (NAIA), the business districts of Makati and BGC, and the growing entertainment industry. Condos in Bay City offer stunning views of Manila Bay, and with many pre-selling developments still underway, the area’s potential for growth and property appreciation remains high.

Areas in Metro Manila to Be Cautious About

While Metro Manila offers numerous opportunities for real estate investments, some areas pose risks due to flooding, high crime rates, or poor infrastructure.

1. Malabon and Navotas
These two northern cities are notoriously prone to flooding. Situated in low-lying areas, Malabon and Navotas are often submerged during heavy rains and typhoons, making them less ideal for residential investments. The potential for flooding not only affects the quality of life but also hampers property value appreciation. While there are affordable properties in these areas, the risk of frequent flooding makes it difficult for homeowners to enjoy long-term returns.

2. Tondo, Manila
Tondo has one of the highest population densities in Metro Manila and is often associated with high crime rates. While recent urban redevelopment efforts have made parts of Tondo more livable, it's still a neighborhood where buyers should proceed with caution. The crime rate and lack of modern infrastructure can affect the property’s long-term value and its attractiveness to potential renters or buyers.

3. Marikina City
Despite its charm and suburban feel, Marikina is vulnerable to flooding, especially during the typhoon season. In 2009, Typhoon Ondoy caused widespread destruction in the city, affecting thousands of homes along the Marikina River. While flood control measures have improved, certain areas remain at risk. If you're considering buying in Marikina, it’s essential to check the flood risk of specific locations before making a purchase.

Key Considerations When Buying Pre-Selling Condos

  1. Developer Reputation: Before investing in a pre-selling condo, it’s crucial to research the track record of the developer. Choose companies with a history of delivering projects on time and according to the promised specifications. Reputable developers include Ayala Land, SMDC, and Megaworld Corporation, among others.
  2. Infrastructure Projects: One of the reasons pre-selling condos in certain areas appreciate in value is the development of major infrastructure projects. Areas near the future Metro Manila Subway stations, like Ortigas and BGC, are expected to see higher property values in the coming years. You can track the progress of these projects through the Department of Transportation (DOTr) website: DOTr Official Website.
  3. Flood Risk: As mentioned earlier, Metro Manila is prone to flooding, especially during the rainy season. Before purchasing a condo, check the flood maps provided by PAGASA to ensure the area is not a high-risk zone. You can access the flood hazard maps here: PAGASA Flood Hazard Maps.
  4. Location and Accessibility: Look for condos located near key business districts, transport hubs, schools, and hospitals. Properties with easy access to these essentials tend to have better long-term value and rental potential.

Conclusion

Pre-selling condos in Metro Manila offer an excellent opportunity for homebuyers and investors to secure property at lower prices with significant potential for appreciation. Areas like BGC, Makati, Ortigas, and Bay City are among the top choices for condo buyers due to their accessibility, economic activity, and development potential. However, it’s essential to be cautious when considering areas prone to flooding or high crime rates, such as Malabon, Tondo, and parts of Marikina.

By doing thorough research on developers, location, and potential risks, you can make a well-informed investment that will yield long-term returns.

If you found this article helpful, be sure to follow me for more updates on the Philippine real estate market. Share this post to help others make informed decisions on their property investments. Together, we can navigate the evolving real estate landscape and achieve our dreams of property ownership and financial growth!

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