We are pleased to announce that the 1st quarter 2017 property market report is now available.

Commercial real estate services company Colliers International, in a recently released report, identified key issues and opportunities in the Philippine property market particularly in office, residential, and retail segments.

Metro Manila office net take up reached 81,400 sq m of gross leasable area (GLA) for the first quarter of the year, as vacancy remained low despite new completions. Pre-leasing is still strong with over 40% of buildings due in 2017 leased out. A significant shift in tenant mix was seen with BPO share representing only 21% of total transactions, down from 60% in 2016. For the latter part of the year, Colliers expects the market to sustain this diversified portfolio with a potential rebound from BPOs as occupiers get a clearer view of government policies both locally and overseas.

Completion of residential condominium projects for the first three months of the year picked up after a sluggish 1Q 2016. Colliers sees about 22,000 additional units being completed this year in the major business districts, with the Manila Bay Area accounting for two-thirds of the new supply. While rents in major CBDs are declining, prices continue to grow albeit at a slower pace. The demand for luxury units is stable and this encourages affordable and mid-income developers to pursue high-end projects especially in the Manila Bay Area, where the demand for luxury projects has spilled over.

Overall vacancy in Metro Manila rose marginally due to the closure of a number of luxury fashion outlets in a couple of district and neighborhood malls. At present, fast fashion and food beverage sustain retail take-up in Metro Manila malls. Amid increasingly generic retail offerings, curation of retail concepts and tenant mixes is becoming more important. Colliers believes that developers need to gear toward a more lifestyle-oriented tenant mix to survive in a highly competitive retail landscape. Developers should future-proof their businesses by cashing in on the increasing popularity of online shopping and being more aggressive in acquiring logistics and warehousing businesses.

Learn more on what transpired during the first quarter by downloading the links below.

1Q 2017 Office Report

1Q 2017 Residential Report

1Q 2017 Retail Report

Recent Research

Contact


Philippines
Colliers International | Manila 11F Frabelle Business Center, 111 Rada Street Legaspi Village, Makati City 1229 Philippines | Tel: +632 888 9988