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Fortis Residences | June 6, 2023
It’s no secret that properties in Makati City, the center of business activity in the country, are sold at a premium given strong demand.
Prospective property buyers often encounter two types of condominium projects up for sale: ready for occupancy (RFO) and pre-selling.
RFO is straightforward as you can live in the property as soon as the payment scheme and initial paperwork are settled. Many, however, remain reluctant towards buying pre-selling units that are being sold even while it remains under construction.
What does buying pre-selling properties mean for potential buyers, especially for those looking to acquire an upscale and elusive Makati address?
Buying a high-end condominium unit at pre-selling rates lets you make the most out of an investment.
Pre-selling condominium units are usually sold at lower rates because developers can only show floor plans, digital sketches, or the initial construction site when prospective buyers consider a purchase. Real estate website Lamudi says pre-selling rates are often 30-50% lower compared to RFO rates, and that’s to compensate for the fact that your investment will be idle for a couple of months or years.
Pre-selling is a good option for people who want to own a condominium or any property since real estate prices, especially those of premium properties generally increase through the years. If you are looking to buy real estate, it’s better to invest as early as you can to save money. It’s definitely a good deal!
Premium properties that are in pre-selling stage allow you to secure a property in your desired location at the best possible price.
Another benefit of buying a condo unit during the pre-selling period is that you can buy from the best location.
Those looking to own an exclusive property within Makati City find themselves having a hard time since RFO buildings come with hefty price tags. By acquiring pre-selling units in emerging areas in the city, one can lock-in a property within Makati during its construction phase at a much lower price. As an early buyer, you can also choose the floor and the position of the unit that you are getting. For example, end units of high-end condominiums, which tend to have bigger space and more windows than inner units, are first to run out during the pre-selling phase.
Fortis Residences, an upscale condominium currently being built by DMCI Homes Exclusive, is the perfect entry point for prospective property owners who want a prized Makati address. The project along Chino Roces Avenue is still in its pre-selling phase, providing an opportunity for those who want to invest.
In recent years, properties located within the bustling central business district (CBD) of Makati have experienced significant appreciation in value, resulting in the high rates observed in the area. However, as urban areas continue to expand and evolve, peripheral locations by the fringes of the CBD are also undergoing development. Consequently, these emerging areas witness a surge in property values, reflecting the positive impact of such advancements.
Knowing that there are ongoing and upcoming developments in the area, it’s better to purchase as early as possible in anticipation of strong demand and of higher prices in the future given Fortis Residences’ proximity to central business districts.
Acquiring a premium property at pre-selling prices lets you realize bigger investment gains.
Property prices appreciate through the years. If you bought your condo unit early, you can see the value of your investment grow from the pre-selling to the RFO phase and beyond. The growth could be exponential – first, you realize the higher valuation once the condominium units are turned over for occupancy, and then the value rises again once you put it up for lease. There’s also that gradual but steady rise in property valuations through the years, and you enjoy all of this just because you had the property to your name for longer and acquired it for a much lower rate.
Units at Fortis Residences are most likely to enjoy high valuations due to its strategic location at the heart of Makati and given the redevelopment plan for Chino Roces as the Makati Southwest Gateway. The conversion of the surrounding area into a mixed-use commercial strip will further boost property prices as the new business district will unlock more opportunities for work and leisure all within walking distance from Fortis Residences.
You have the first-mover advantage in the area.
Securing a property in an area which is likely to be developed into a business district will allow you to realize an even bigger potential for your investment to grow. This bodes well for people who are looking to rent out their condominium property, as this means you can charge a higher rental rate, and for those who plan to put it up for sale in the future.
In the case of the Makati Southwest Gateway, investing in Fortis Residences gives you a front-seat pass to the redevelopment of Chino Roces Avenue and an opportunity to realize higher property valuations once its transformation to a new commercial strip is complete.
Pre-selling gives you time to prepare for your future home.
Waiting isn’t always a bad thing – in fact, it’s wise to use the time before the turnover of a condominium unit to plan properly. Investors may use the time to figure out how to design their unit, scout for appliances that they will use, and save money to buy pieces of furniture that they will install in the property once it’s ready.
You can’t live in it right away.
At the pre-selling phase, the investment is not yet tangible. Pre-selling is not suited for individuals or families who need a new place to live in. Patience is key in exchange for the big discount you got for investing in the property ahead of time.
Investments are not immediately realized for those who bought units at the construction phase, especially for those who are planning to rent out their units to generate a new income stream. One would have to wait for the turnover and complete the furnishing of the unit before it can be habitable for the owner or their future tenants.
Payments could double if you’re currently renting.
Buying a condominium unit at the pre-selling stage assumes that you currently have some other house where you are living in since you can’t move into your property just yet. For some, this means spending extra since they pay their current rent together with their monthly amortization for the unit if they took out a loan.
It can get heavy on the pocket, but one will find it bearable if they think about the potential gains in the future – it is an investment after all.
There could be delays.
Sometimes, property developers encounter some issues that could lead to delays in project construction. This entails pushing back turnover dates beyond what had been initially promised to a property buyer, which forces the latter to incur further costs as their units remain unavailable for longer.
Choosing a reputable developer is key to avoiding this issue. DMCI Homes takes pride in the high quality of its construction projects, its history of delivering projects on time or even ahead of schedule, and its long track record of excellence in property development. The quadruple A firm’s expertise also minimizes errors in estimating project timelines while maintaining high standards in the design, construction, and maintenance of its properties.
Investing in real estate requires serious consideration especially on decisions involving money and time. Pre-selling premium condominium units are a good investment option for those who have the resources to invest and the patience to wait for project completion.
Fortis Residences is ready to welcome its first residents by 2027, with the promise of comfort, convenience, and indulgence at the heart of Makati City.
Underpinned by exceptional quality that DMCI Homes has long been known for, each DMCI Homes Exclusive property is designed to possess an inherent rarity, be it in location, master plan or development features. To learn more about DMCI Homes Exclusive, call (632) 5324-8888. News and other updates are also posted on the company’s official website and its social media accounts on Facebook, Twitter, Instagram, and YouTube.
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