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Philippine Property Market Reports: 2Q 2019 Office, Residential, Hotel, and Industrial

Colliers identified key issues and opportunities in the Philippine property market in the office, residential, hotel and industrial sectors.

We are pleased to announce that the 2nd quarter 2019 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.


The national government’s directive halting the approval of Philippine Economic Zone Authority (PEZA) applications is likely to constrict the expansion of outsourcing firms. But we see the dip in absorption being offset by take up from traditional occupants* and offshore gaming firms that are ineligible for fiscal incentives given to PEZA locators.

We recommend that developers: target traditional tenants; push for the speedy approval of pending PEZA applications; and monitor proposed legislation that should result in more foreign companies occupying office space in the country’s capital.

Meanwhile, outsourcing tenants should consider PEZA space outside Manila such as those in Iloilo and Cebu while offshore gaming firms should consider new towers in Ortigas Center and its fringes.


Take up in both the pre-selling and secondary condominium markets in Metro Manila remains strong due to appreciation
potential and a wider base of buyers following the influx of offshore gaming firms from China.

With sustained demand for units that are both for sale or lease, Colliers recommends that developers:

> Continue joint ventures with foreign firms
> Further diversify projects by offering affordable to mid-income projects, to tap a wider base of residential end-users
and investors
> Target business districts such as Quezon City and Ortigas Center that are likely to house offshore gaming firms.


Colliers expects foreign arrivals to reach 8.3 million in 2019, within the government’s target. Chinese tourists are a major driver of hotel occupancy and spending. Colliers recommends that hotel developers take advantage of the rising number of foreign tourists by implementing the following:

> Construct more three- and four-star hotels
> Develop more hotels near airport modernization projects
> Monitor the rise in new direct flights by Philippine and Chinese airlines
> Establish mobile payment at in-hotel retail outlets

Colliers also encourages developers to use the proceeds from divesting other commercial assets into REITs to build their hospitality portfolios



The impact of Chinese investors on Philippine property has spilled over to the industrial segment. The rising interest from Chinese manufacturers has compelled firms to build more warehouses and develop the country’s first Philippine-Sino industrial park.

Given the industrial trends, Colliers recommends that developers –

> Modernize warehouses
> Develop industrial space within new townships
> Align industrial developments with the government’s infrastructure program

Colliers encourages food and beverage (F&B) and packaging manufacturers to continue looking for space in the Northern-
Central Luzon corridor.


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


2Q 2019 Office Report

2Q 2019 Residential Report