Skip to main content Skip to footer

Flash Report | Options for Philippine Property Players in Response to Weaker Growth

The Philippine economy grew by 5.9% in 2019, the slowest pace since the 3.7% recorded in 2011. The economic growth potential for 2020 will be clipped by the impact of COVID-19.

The Philippine economy grew by 5.9% in 2019, the slowest pace since the 3.7% recorded in 2011. The economic growth potential for 2020 will be clipped by the impact of COVID-19. In our opinion, a coordinated policy and monetary response from the Philippine government and central bank is likely to instill confidence in the property market before the end of 2020, assuming the outbreak peaks in H1 2020.

 Due to the spread of COVID-19, the Philippine economy will grow at a lower rate in 2020 than originally expected. In response to this situation, Colliers recommends:

 > Landlords should target traditional and outsourcing tenants considering our expected decline in demand from POGOs; communicate early with tenants regarding flexible lease terms; and emphasise wellness features and certifications.

 > Occupiers should take this opportunity to negotiate long-term deals with landlords and look for new buildings in business hubs’ fringes offering lower lease rates.

 > Condominium developers should highlight property management as it is crucial to safety and health of buildings and unit owners; and offer more flexible terms to attract buyers. Developers that responded well to the crisis will stand out once the pandemic wanes.

 > Mall and hotel operators should line up marketing campaigns to recapture demand as the COVID-19 health issue wanes.

Download the full report


Related Experts

Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

View expert