PHILIPPINE PROPERTY MARKET REPORTS

We are pleased to announce that the 4th quarter 2018 property market report is now available. Global real estate services company Colliers International, in a recently released report, identified key issues and opportunities in the Philippine property market particularly in the office, residential, hotel and industrial sectors.


OFFICE

PEZA Dilemma

Both business and knowledge process outsourcing firms drove leasing in 2018, and we see this trend continuing in 2019. The demand from outsourcing firms, however, may be curtailed by the slow release of Philippine Economic Zone Authority (PEZA) proclamations. Colliers urges developers to:

> implement strategic land banking near Manila subway stations

> push PEZA zone applications

> target non-outsourcing tenants while PEZA applications are pending

Meanwhile, flexible workspace operators should aggressively differentiate their offerings.


RESIDENTIAL

New Record High

Completion of condominium units picked up in H2 2018 as developers captured the strong demand. Despite the delivery of new units into the secondary market, Colliers recorded lower vacancy in Q4 2018. The number of pre-sold units recorded a new record high in 2018. Colliers believes that take-up in the preselling market will partly be affected by our projected slowdown in launches over the next 12 months due to the dearth in developable land and continued rise in land prices. To bridge the supply gap, Colliers recommends more aggressive and strategic land banking on the fringes of business districts as well as near selected stations of the Manila subway. 


HOTEL

Lagging Behind Peers

The country attracted 7.1 million tourists in 2018, a record-high but still behind the government’s goal of 7.4 million. Manila continues to lag behind its Asian neighbours in terms of tourist arrivals and average daily rates (ADR), but the push to attract more leisure investments by improving infrastructure and implementing sustainability programmes should support arrival growth and sustain healthy hotel occupancy and ADR growth from 2019 to 2021. Colliers encourages developers to establish more homegrown brands; landbank near airports that are due for modernization; explore air service agreement opportunities; and monitor tourism projects implemented by relevant government agencies. DOWNLOAD THE HOTEL REPORT Industrial Sector: Logistics Lifts Industry The decline in foreign manufacturing commitments in the first three quarters of 2018 was offset by the rise in warehousing and logistics investment. But as we see aggressive warehouse construction, Colliers believes that developers need to recalibrate their facilities to stand out and accommodate the demands of a fast-evolving e-commerce market. Colliers encourages developers to continue constructing and upgrading warehouses; to scout for suitable land in Northern and Central Luzon and tie up with local developers; to push for the resolution of fiscal incentive issues; and to align expansion plans with the government’s infrastructure push.


INDUSTRIAL

Logistics Lifts Industry

The decline in foreign manufacturing commitments in the first three quarters of 2018 was offset by the rise in warehousing and logistics investment. But as we see aggressive warehouse construction, Colliers believes that developers need to recalibrate their facilities to stand out and accommodate the demands of a fast-evolving e-commerce market. Colliers encourages developers to continue constructing and upgrading warehouses; to scout for suitable land in Northern and Central Luzon and tie up with local developers; to push for the resolution of fiscal incentive issues; and to align expansion plans with the government’s infrastructure push.


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

4Q 2018 Office Report

4Q 2018 Residential Report

4Q 2018 Hotel Report

4Q 2018 Industrial Report



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