ILOILO 2Q 2017 PROVINCIAL PROPERTY MARKET REPORTS
Office, Residential, and Retail Sectors
We are pleased to share with you our latest Provincial Property Market reports.
In this release, we have identified key issues and opportunities in the province of Iloilo particularly in the office, residential and retail sectors.
ILOILO OFFICE SECTOR
The Iloilo office market has the foundations in place to cater to the growing BPO industry outside of Metro Manila. According to the National Competitiveness Council, Iloilo ranks eighth best among Highly Urbanized Cities (HUCs) in the country in terms of competitiveness, second in terms of government efficiency. Furthermore, the government thrust to promote the province as a major investment hub in the Visayas, coupled with the planned projects of the country's major developers, provides a positive outlook for Iloilo. Demand for office space in Iloilo has been driven by the business process outsourcing (BPO) industry. While demand in Metro Manila has slowed, Iloilo remains an expansion hub for BPO investors.
ILOILO RESIDENTIAL SECTOR
The Iloilo residential market is still primarily horizontal (house and lot) market-driven. Although some vertical (condominium) projects were recently completed in the Iloilo Business Park, the condominium market is still in its early stages. A look at the launches and take-up of houses and lots in the major Visayan province reveals that demand is primarily a function of the available supply. Notably, many projects launched in the latter part of 2016 have been significantly sold. Banking on a pool of buyers from new Ilonggo families and Overseas Filipino Workers (OFW) composed of nurses and seafarers, demand for houses will likely grow, especially as the business district also develops.
ILOILO RETAIL SECTOR
Restaurants and other food retail outlets, comprised of home-grown and foreign brands, occupy at least 25% of Iloilo's retail space. This is attributed to Ilonggos' fondness for food. Over the next two to three years, we see about 96,000 sq m (1.03 million sq ft) being added to Iloilo's retail stock. The projects lined up by major developers are indicative of the city's improving purchasing power. Colliers encourages local and national retailers to be more aggressive in introducing new food and beverage (F&B) concepts to Iloilo consumers. Fast fashion is another segment that retailers should explore further as it appeals to a millennial-driven workforce. Given the low overall vacancy, mall operators should maximize the limited space available and offer an interesting mix of F&B and fast fashion brands.
Download the full reports by clicking the links below.
2Q 2017 Iloilo Office Report
2Q 2017 Iloilo Residential Report
2Q 2017 Iloilo Retail Report
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