Top 10 Predictions for 2018

The Philippines' property sector recorded mixed results for the first nine months of the year. While we see challenges ahead, opportunities for the sector abound over the next 12 months. Colliers encourages developers to take advantage of opportunities that could arise from the implementation of government policies such as the Comprehensive Tax Reform Package; relaxation of foreign ownership restrictions on retail and construction; and amendments to the existing procurement law and business registration systems which should entice more developers to take part in the government’s ambitious infrastructure development programme. We encourage the developers' infrastructure units to explore operation and maintenance (O&M) opportunities involving transportation projects in and outside of Manila. We also recommend that developers be more innovative given the proliferation of townships and expansion of opportunities in alternative markets such as Cebu.

The office sector remains afloat despite slower take-up from outsourcing firms. The void has been filled by offshore gambling firms. However, we do not see offshore gambling as a major demand driver beyond 2018. 
Residential leasing in Metro Manila remains challenging although we see opportunities in workers’ dormitories in key business hubs in major business districts and affordable house and lot developments in urban areas outside of the country’s capital.

Brick-and-mortar malls continue to attract more customers by providing lifestyle amenities. We see physical stores and e-commerce platforms complementing each other over the medium term. 
Hotel occupancies and room rates continue to benefit from the influx of foreign travellers though we see occupancies and rates declining marginally in casino-hotels in the next 12 to 18 months given the substantial new supply.

Meanwhile, the surge of manufacturing investments is propelling the demand for industrial space and standard factory buildings. However, we project that lease rates in the country’s industrial corridor, Cavite-Laguna-Batangas area, will record flattish growth over the near term due to the proliferation of alternative industrial parks in Northern and Central Luzon.


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