House or Condominium: Price and Location

Condominiums and houses are among of the most popular properties that anyone can choose to own. Sometimes, it gets confusing on which one to choose from. So before buying a property whether a condominium or a house and lot, consider these following factors in your decision making process: price and location, cost of living and its maintenance and repairs, privacy and security and its potential resale.

In this article, we will be talking about price and location.

Note: The discussion in this blog is based on the current market condition in the Philippines, particularly in Davao City.

Price and Location
This two is usually tied up. Properties can be priced high or low basing primarily on its location then space, amenities and other features are to follow.

Condominiums usually has a higher price especially if we compute it in its price per square meter but put it in mind that condominiums are mostly located in prime areas so it has its good reason why it is priced higher. It is near shopping malls, offices, schools, hospitals and other commercial and government establishments. It fact most of it is just a stone’s throw away.

House and lot are much more affordable in terms of price per square meter but location can be far from downtown area. Like us here in Davao City, most new developments for a house and lot ranging from 600 thousand to 6 million pesos are at least 30 minutes away from downtown proper. While condominiums in and near downtown area, the price starts at 1.2 million pesos.

Now, you might get a little confused why it seems like condominiums are much more affordable than a house and lot based on the numbers above. Again to be clear on this, we are pricing it based on square meter, according to the space/area of the property. A 1.2 million pesos condominium is smaller in space/area compared to a 1.2 million pesos house and lot. (see illustration below)

Price= Area x Price per sqm

Condominium
Price: 1.2 million pesos
Area: 22 square meter
Price per sqm: 54,545.45 pesos

House and Lot
Price: 1.2 million pesos
Area: 100 square meter
Price per sqm: 12,000 pesos

So, I hope you get to understand the difference in pricing between a condominium and a house and lot. We factor in the location and the space/area of the property. Furthermore, having a house and lot, you have more flexibility to add more space in your property like putting a backyard and so on. While in a condominium, your space is fixed.

To help you better in your decision, try asking these questions:

• If I am going to buy a condominium, am I willing to give up a bigger space for a better location?
• If I am going to buy a house and lot, am I willing to travel a certain distance for me to have a bigger space?

I hope this article is able to help you. See you on my next blog, we will talk on cost of living and its maintenance and repairs.