More and more people are looking at condominiums as their preferred residences, and the prices of condo units are spiking up after a short period of stagnation due in large part to Ondoy. The typhoon is now being dubbed as a great equalizer because it made no distinctions, hitting both low-end residential areas and exclusive enclaves in Metro Manila.
In fact, one of the hardest hit was Magallanes Village, where a businessman died of a heart attack when he saw his brand new Mercedes Benz – delivered just a couple of days before the typhoon – totally submerged underwater. The man just couldn’t take it. Another one, a young “heredero” who just plays golf for a living could not believe that his inherited wealth and home was completely gone with the floods. He lost his cars, his home – everything.
Prior to Ondoy, Magallanes Village already has a history of flooding especially on its southern portion because of its proximity to Maricaban Creek. Over the years, the local government – from the time of Mayor Yabut in the ’90s, have been investing in flood control measures like dredging – yet a lot of houses were still submerged in water – some chest deep according to accounts from residents.
It would certainly be difficult now for the owner of this P18-million house (who advertised online several days before the flood) to find buyers, despite the fact that the street where his property is located is “safe” from floods. Which is why it is not surprising that people are showing more interest in high rises as their alternative. Prices especially at high end condo buildings like One McKinley Place and Pacific Plaza Towers have become even more expensive.
Many of the victims no longer want to return to their homes and are thinking of selling their properties even at a tenth of the market value – that is, if they can find any willing buyers. At the rate things are going, it would be very difficult to dispose of property, even at bargain prices, if they are from the devastated areas in Marikina, Cainta, Antipolo, Pasig and Rizal.
Experts from the real estate industry aver that the property sector may suffer as a result of the recent calamity. In the first place, most of the development has been focused on eastern areas like Cainta and Marikina because hubs like Makati, Manila and Quezon City have become overcrowded and overpopulated.
People will now be more cautious when it comes to buying houses, with attention not only focused on such factors as accessibility and safety from criminal elements but on whether the area is located near a creek or any body of water. They should also look into the history of the place, whether it is flood-prone or not, and if the developer has built a more than adequate drainage system.
Other locations expected to benefit from the aftermath of Ondoy are developments south of Manila, although some developers are adopting a more restrained outlook and do not really expect an undue increase in the demand for high rises. While the typhoon has affected “horizontal” projects, they do not see a sudden shift of interest to “vertical” developments – although they concede that the disaster would, indeed, influence the decision of prospective buyers.
The demand for housing, however, will continue to be high for the next two decades, and the industry could recover from the slump sooner than expected. Filipinos have rather short-term memories, and once they see the roads getting cleaned and fixed, canals and drainages getting de-clogged (and perhaps some unscrupulous developers and irresponsible public officials getting jailed in the process), they will overcome their aversion of Marikina and all those other flooded places.
In any case, the recent disasters should convince everyone that whether you plan to purchase a bargain house and lot or an expensive condominium, it would pay to look at the history of the area in terms of its susceptibility to natural disasters and of course, at the integrity and reputation of the developer. After all, one should not only consider how much the property costs – but most of all, you should buy the right kind of property that will not cost you your life in the end.
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