In condo investing, size does matter. But whether to go smaller or bigger is the more pressing issue. After all, how the buyer and investor plan to use the property in the medium- to long-term will help them determine the ideal size of their next condo purchase, because the condo’s size has a lot to do with its eventual profitability.
With this, global property portal Lamudi Philippines gives out advice on the ideal size of a condo property depending on the type of investment.
IF YOU BUY AND HOLD…
Investors who plan to purchase and hold on to the condo property in the long term are better off with bigger units: those with three bedrooms or at least 150 sqm. Although these condos are definitely more expensive than smaller ones, they offer good returns in terms of capital appreciation. In fact, according Colliers International Philippines, luxury three-bedroom condos in the three markets it monitors (Makati CBD, Bonifacio Global City, and Rockwell Center) are expected to appreciate in value by between 5.1 and 6.3 percent by the end of this year.
Where to buy them
These properties are usually found in Metro Manila’s business districts, such as the Makati CBD, Ortigas Center, Rockwell Center, and Bonifacio Global City. However, not all condos in these areas can be considered “luxury.” Smaller condos (less than 100 sqm), even those advertised as three bedrooms, cannot be considered as such and, thus, have lower resale value.