Colliers identified key issues and opportunities in the Bacolod property market particularly in the office, residential and retail sectors.
We are pleased to announce that our Bacolod property market report for the first quarter of 2019 is now available. In these reports, we identified key issues and opportunities in the Bacolod property market particularly in the office, residential and retail sectors.
Office Sector: Bacolod outsourcing drives occupancy
Despite the addition of 11,000 sq m (118,000 sq ft) of new supply, vacancy in Bacolod city remains low as the new space was taken up by an outsourcing company. With rising interest from occupants, Colliers recommends that developers build office towers within Philippine Economic Zone Authority (PEZA)-proclaimed properties; develop larger floor plates for consolidation of tenants; offer more plug-and-play offices; and tweak the tenancy mixes of their retail podiums so as to attract or retain occupants. Meanwhile, Colliers encourages tenants to partner with government-run training centres to upgrade employees’ skills and keep an eye on new office towers due to be completed in Bacolod City from 2019 to 2021.
Residential Sector: Affordability is key
The condominium segment in Bacolod City is still in its early stages but we see both demand and supply rising once various township projects are completed. Demand for house and lots (H&L) remains strong as it is buoyed by take up Overseas Filipino Workers (OFWs) as well as local and foreign investors. Colliers believes that developers should be quick in cashing in on residential opportunities by converting brownfield properties such as the old airport into mixed-use communities; exploring land around the fringes of Bacolod City; aggressively developing affordable and economic units; and acquiring developable land near planned infrastructure projects.
Retail Sector: Food & Beverage to dominate
Bacolod City remains a major retail hub in Visayas. National mall developers have either completed or lined up projects over the next two to three years. Food and Beverage (F&B) and foreign clothing brands continue to drive occupancy in new malls. Colliers encourages mall developers to improve tenancy in new malls by bringing in more foreign F&B and clothing and footwear brands; explore parcels of land around the periphery of Bacolod City viable for smaller retail outlets such as Murcia and Talisay; and house family entertainment centres and playgrounds from Manila such as Time Zone and jump yards.
CLICK TO DOWNLOAD FULL REPORT