Condo Living: A Guide to Choosing Your Next Home

When it comes to condo price and size, is bigger always better?

If you're new to the world of real estate investment, you might think that the price and size of a condo unit are directly proportional to one another. But not all properties are made equal, and some condos that give the best value for your money might not be as large or as lavish as you'd expect.

Factors like location, construction quality, age, and amenities can have a huge impact on price points, increasing or decreasing the cost of your unit regardless of its size. To make an informed decision for your next property purchase, you need to comprehend these factors and understand your own real estate investment needs, all at the same time.

Want to better understand the relationship between a condo's price and size for your upcoming property investment? Take a look at this comprehensive guide by the real estate professionals at DMCI Homes to walk you through this important home-buying process.

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Important factors when you buy a condo

There are many ways to determine how much a condo unit is in the Philippines. From size to location, and even the condition of the property, your price can easily vary due to all these critical real estate factors. Take a look at this section for the most relevant ways your price can be affected when you buy a condo.

General pricing factors

Condo prices are typically calculated per square meter, with adjustments made based on the unit’s number of rooms, and the condominium development’s location, region, and amenities. This means that, while size can affect price, there are other factors that affect the cost of a property beyond square meterage alone.

Aside from size, the location, amenities, and building quality of a property can also determine the price when you buy a condo in the Philippines. In the case of location, the closer a development is to prime destinations like tourist spots, entertainment centers, or business districts, the more valuable it may become for prospective real estate investors.

The more luxurious the amenities and the higher quality the build, the higher the price might be as well. So by assessing these factors and finding developments with various levels of quality, you can compare your options and select the best possible one for your current financial means.

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Differences across cities and regions

Size-price dynamics easily differ across condos in key cities, so regional variations are another factor you should watch out for when you buy property. Urban, suburban, and rural markets all vary in rates and demand, with rural rates generally being the least expensive and urban rates being the most expensive.

The relationship between your unit's price and size will likely change depending on whichever region of the Philippines you're purchasing a property. NCR generally boasts higher prices due to a dense population and higher demand, while costs tend to be lower in less dense and less urban areas like Cavite or Davao.

Influence of a building's age and condition

Another essential factor for condo buyers is the age and condition of your chosen property. Newer and better renovated developments will naturally command higher prices due to their fancier quality, compared to older ones. So a smaller unit in a younger building may actually be more expensive than a larger unit in an older development.

If you really want to go for a brand new unit for your upcoming real estate purchase, then you should expect that it might be more expensive than an older unit - even if both these properties are of the same or comparable size.

Supply and demand factors

When the market demand for real estate increases in certain areas, condo prices can also increase drastically - even for smaller units. If there aren't a lot of properties on the market while demand is high, then there will inevitably be a premium on such real estate products, leading to a rise in price.

If you're looking to own property, try to go through the buying process at a time and place where supply and demand are relatively stable. This way, you can worry a little less about these factors and focus on other aspects that may affect your unit's price.

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Advantages of a larger condo for rent

For a fair and comprehensive understanding of a property’s size-price relationship, you need to dispel certain condo buying myths and misconceptions. One such misconception is the idea that a larger property costs too much and is probably out of your reach as a consumer. Let's dispel this myth by going through the advantages of a bigger condo unit for your unique needs.

More living space

One obvious benefit of a larger property is the increased amount of living space. A bigger home is generally better for you if you need the space to accommodate more family members or guests in one place. A two-bedroom condo, for example, is great for this setup because you'll be able to house people more comfortably in one unit.

An additional benefit to increased living space is that you can accommodate more of the other things you love or need, like your hobbies, pets, or even a home office for your work-from-home setup. In general, a bigger home means more space to fit all aspects of your current lifestyle.

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Enhanced comfort and privacy

Another important benefit of a bigger space is that you can increase your sense of comfort and privacy at home. With more rooms and square meterage, you can create more specific spaces or zones across your unit, making it easier for you to delineate personal and shared areas with your loved ones.

Privacy can feel like a luxury in a smaller home. If you need more rooms or zones per person in a household, then a larger place will offer you the space you need for that enhanced sense of comfort and privacy at home.

Potential resale value

Larger homes often appeal to buyers because of their size and rooming capacity. Such advantages are also perceived as premium benefits in the condo resale market, so as a real estate investor, you can continue to gain great returns from such a property when you sell it again on the property market.

Big condos are a gift that keeps on giving; from extra space for your lifestyle needs to greater returns on your investment, you stand to gain a lot from buying such properties with DMCI Homes. But if you want to know more about the other side of the size spectrum, check out this next section for the benefits of smaller-sized units instead.

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The appeal of smaller real estate in the Philippines

Smaller real estate in the Philippines also carries great appeal for investors with certain budgetary or space requirements. Here are some of the outstanding benefits of smaller homes like studio or one-bedroom units.

Affordability

In general, one great pro to Philippine condos that are lower in square meterage is their lowered costs. Because they're more compact in size, these units tend to have fewer upfront expenses or maintenance fees, making them more affordable than other larger, more high-maintenance homes.

Of course, this isn't always the case; as mentioned in the earlier sections, a smaller property can still be more expensive if it's newer or located in a highly urbanized area. But if you find a unit that's lower in price and smaller in size compared to other units in a development, it's because this property is more affordable to construct and maintain.

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Efficient and creative living

When you live in a smaller unit, you may find yourself becoming more creative with how you utilize and maximize the space. You can make your smaller condo better with innovative designs and layouts, leading to a more efficient and highly functional lifestyle.

This can be an excellent setup for people living on their own, or couples who are comfortable staying in closer quarters. You won't need to manage as much space, and you'll have an easier time optimizing storage for your belongings as well.

Accessibility to prime locations

When there's high demand for housing at a prime location, real estate developers often prioritize making more small units to ensure more prospective tenants or investors can purchase property in these areas. By pursuing such units in these coveted locations, you secure successful condo investments in the best areasacross the country, at a potentially lower price point as well.

Based on these advantages to both small and large condo units, you can see that there's more to the dynamic between size and price than meets the eye. As you consider all these benefits, make sure to check out the next section for more factors that’ll help you decide on your purchase.

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Considerations for size and condo unit price in the Philippines

There are a few more important factors that can influence your decision to purchase a condo based on size and structure, alongside its price. Take a look at this section for a few other crucial elements to your size-price stance.

Lifestyle and needs

A hugely important factor that'll dictate the size and price of your chosen property is your own lifestyle. If you’re trying to find a new life at a DMCI Homes condominium, you will need to assess your own personal preferences and needs for a great condo experience.

Your family’s size is one such deciding factor; if you need to accommodate a lot of people or pets in one home, then you'll probably need more space than a single person or a couple. Your personal preferences will also impact this choice - like if you prefer to live compactly or lavishly at home.

Even your work needs will affect your choices - if you do your work from the comfort of your own home, you'll want a layout that can fit a functional work-from-home setup. It's important to assess your personal needs in this way since these will be just as important as the unit's size and price.

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Long-term financial goals

Your long-term financial goals also play a huge role in balancing out your priorities between size and price. For example, if you're looking to save up throughout your condo life you might prefer one price point over another, affecting the sizes of units you'll be choosing from throughout your property hunt.

It's important to assess this trade-off between immediate affordability and the potential appreciation of larger units. You may benefit more from one or the other depending on your financial goals, which can include building wealth, improving the quality of your assets, diversifying your investment portfolio, and more.

Amenities and shared spaces

Amenities are a huge influence on people's interest in condominium developments. Offering both connectedness and privacy within shared spaces, such high-quality amenities may also help to offset your need for larger personal spaces at home.

If your building features amenities and shared spaces such as gyms, pools, function rooms, and lounges, then you may no longer need the space for a home gym setup, a larger living room space, or even a bigger bathroom at home. So make sure to inquire with your developer or real estate agent to see if your building already offers these excellent amenities for a better condo experience.

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Recent trends in sizes for a rent-to-own condo

Given all these factors, considerations, and comparisons between bigger and smaller units, you might feel more prepared to take on the world of buying or pursuing rent-to-own condo programs. To continue guiding you through the world of property selection, make sure to pay attention to these notable trends in the world of real estate.

Shift toward smaller units and flexible layouts

According to recent reviews of the Philippine market, many real estate investors and buyers are now opting for smaller units that are more affordable to produce and purchase. This shift is mainly due to the rise in property prices and a greater focus on efficiency among condo dwellers.

Because of this trend towards more compact spaces, open-plan floor layouts and multifunctional spaces are also becoming more popular. These interior design choices help make smaller units feel larger, more functional, and more flexible, creating a better living experience for the residents of these properties.

Luxury in Compact Living

A small unit doesn't necessarily equate to a bare or boring one. With the rise of compactly sized condo units, there has also been an increase in smaller but more luxurious real estate properties that incorporate high-end finishes and smart home technology.

These kinds of properties are attracting buyers who would rather value quality over square meterage. They might prefer to reside in more efficiently designed spaces, only populated with the things they need for their everyday lives. They can access other necessities by utilizing the development’s amenities, or by walking to nearby stores, malls, and locations for their needs.

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Emphasis on amenities oversize

Buyers with young families don't necessarily need larger living spaces if they have access to premium amenities like gyms, pools, co-working areas, and gardens. With the presence of such attractive services, more and more residents are finding it convenient to live with less square meterage and more access to luxury amenities and other prime offerings.

The rise of “micro condos”

"Micro condos” and apartments are more than enough for some buyers and residents who desire an incredibly low-maintenance lifestyle. This unique trend has found its footing with people living alone in dense urban areas; with a micro condo, they prefer to live in an incredibly compact space that hosts the essentials for the smallest and most efficient lifestyle possible.

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Comparing two DMCI Homes properties

As emphasized throughout this comprehensive guide, size isn't always everything. Trends have shown an increase in popularity for smaller and more compact lifestyles, without the need for sacrificing comfort and luxury.

To highlight how sizes and prices can truly vary all over the Philippine real estate market, take a look at these two DMCI Homes properties with similar price ranges:

Within this comparable price range, you can get two drastically different living experiences: one with a modestly sized unit at the heart of the country's capital, and one with an entire house and lot away in Laguna province.

Even if the prices are similar, the sizes and living experiences are not. For example, if you need to live near central business districts in Pasig, Makati, or BGC, then maybe a compact unit in Prisma Residences will work best for you. But if you want a quiet and restful home for you and your family, then the house and lot in Willow Park Homes might just be best for your needs.

Size isn’t everything, especially if the other factors of your purchase don’t align with your wants and needs. At the end of the day, your final choice of real estate property is truly up to what you prefer and what you need for your current lifestyle.

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Tips for making an informed real estate decision

To make the surest and most informed decision possible for your upcoming property investment, remember to assess your choices across multiple factors - not just size or price. Here are some tips and reminders to do just that:

• Consider your budget. Think about your short-term and long-term financial goals. Can you currently afford a larger or more expensive property investment? Consider what such a purchase would mean for you in terms of potential future returns, and see if you can balance it with your current budget.
• Identify your needs versus your wants. Utilize checklists to know if you're truly ready to buy a condo. As you go through this evaluation and assessment process remember to separate your wants versus your needs, to ensure that you're prioritizing the right things for this investment.
• Think as far ahead as possible. Will your choice of condo size still be worth the investment over the next few months or years? Future-proof your property purchase by following real estate trends and anticipating market changes to ensure the security of this long-term financial commitment.

While size and price are certainly important, they are just two of a myriad of factors that go into a good real estate investment decision. By examining factors such as location, amenities, and market trends, you can gain the best and most comprehensive picture possible for a great property purchase with DMCI Homes.

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