Shopping for a home in Forbes Park?

Shopping for a home in Forbes Park?

Sandwiched between the premier financial and business districts of Makati City and Bonifacio Global City, Forbes Park is considered the most desirable of the Philippines’ gated residential villages. It is the preferred address of ambassadors and the diplomatic community, and the desired neighborhood of the county’s elite.

The village having been established in the late 1940s, its original residents would have already sold or bequeathed their homes to their children or grandchildren. The volume of these homes being sold by heirs, however, remains low.

Listed for sale

Of the 583 lots (more or less) within the village, there are usually around 30 to 40 credible properties listed for sale at any given time by bona fide sellers or brokers. These may likely be the next-generation heirs selling their properties, hoping to cash in on the price gains and move to smaller spaces for retirement.

Interestingly, there are two families that together own almost 20 percent of the stock in the village, while another 20 percent of the homes belong to the embassies. These owners most likely do not intend to sell. There are also the first-generation wealth who have bought into the village and are continuing to accumulate properties there. These cash-rich buyers are always on the lookout for good deals. And lastly, there are still residents who actually still live in the homes they inherited and will continue to do so with their extended families.

Prices and demand

Pricing for the properties in Forbes Park generally should consider whether there is a house on the lot, and whether the house is old, new, or in good condition. Thus, pricing varies depending on the age and condition of the houses sitting on the land.

For example, the current price from two listings by highly reliable brokers ranges from P560,000 to P640,000 per square meter. But these properties have old homes and do not contribute significantly to the price. Pricing is also affected by demand and availability of inventory. And since demand remains high for this neighborhood, prices continue to grow due to the limited inventory for sale.

However, there are postings of speculative listings at high prices to get an indication of market interest. This can mislead buyers about the value of the property and may be seen as creating false expectations. It may even be considered unethical.

Asking prices vs market value

The asking prices for properties do not necessarily reflect their market value.

Property valuation or appraisal by reputable valuation firms or individuals can help determine the market value of a property. This valuation is seen as uninfluenced by perceived notions of additional value in the view of special sellers or even special buyers.

Property valuation also takes out the allowances for negotiation commonly added to asking prices. A qualified valuer can help potential buyers and sellers weed out any listing that doesn’t reflect market value and use only comparable listings whose prices can be adjusted to determine the price of their subject property.

A look at the posted listings online shows double counting or misleading information. For example, 300 houses may be listed for sale in Forbes Park—but we will see repeatedly the same property by different brokers. There may even be properties that are not in Forbes Park, Makati despite their labeling (such as houses in Dasmariñas Village, San Lorenzo Village, McKinley, and even Ayala Alabang, but classified under Forbes Park).

At the end of the day, careful scrutiny is needed when evaluating these listings, where there may be double counting with different prices for the same property, and with both old and new information available at the same time.

The author is the associate director and head of Research at Leechiu Property Consultants Inc.