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Colliers Quarterly | Property Market Report | Q1 2021 | Philippines


We are pleased to share that our property market reports for the 1st quarter of 2021 are now available. Read  key updates on the Philippine property, covering office, residential, and retail sectors and our data-supported recommendations to industry stakeholders.

Office leasing opportunities amid Covid surge
E-commerce, outsourcing and data centres to drive demand post-COVID
Colliers saw the highest transaction level in the first quarter since the lockdown began last year. However, the surge in cases in Q1 2021 halted the gains. In our view, Metro Manila’s office market demand recovery hinges on the pace of the Covid-19 vaccination program. Increasing vaccinations should reduce the number of Covid cases and bolster confidence for companies to return to the office.

Colliers encourages tenants to:
• Assess their revival and growth prospects to take advantage of tenant-favorable office market (e.g blend-and-extend.)
• Consider short-term lease options (e.g. 1-to 2-year terms or flexible workspace) to tide over spaceneeds in an uncertain period.
• Implement the hub-and-spoke strategy to tap new labor sources and reduce real estate costs .
• Employ flight-to-value and/or flight-to-quality strategies.


Green shoots of recovery for Philippine residential property
Economic rebound, vaccination to help lift residential demand

Pandemic-induced disruptions have altered the Philippine economy and the property sector. Weak office leasing demand contributed to subdued residential demand. We expect this to result in further price and rental correction.

Colliers expects a recovery in new supply in 2021, as developers are already exploring the viability of new project launches in key areas across Metro Manila.

The government’s vaccination program is providing a glimmer of hope, and economic recovery should also provide a much-needed boost to local investor and end-user demand. In our view, developers should further test demand in the luxury market and become more innovative with promotions and incentives.


Physical stores to post higher vacancy as consumers, retailers go into wait-and-see mode

No new retail space was completed in Q1 2021. Colliers expects lockdowns in Metro Manila and subdued consumer confidence to push retail vacancy to 16%, the highest since 2002. We expect demand slowdown and closure of physical stores to keep rents on a downward trend before a slow recovery begins by 2023.

Colliers recommends landlords to:
• Be more flexible to tenant requests for concessions
• Develop alternative dining strategies and repurpose vacant retail space

Meanwhile, we encourage retailers to maximize the use of technology and explore the roll-out e-wallets, messaging applications, and self checkout schemes to boost demand across Metro Manila.


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Joey Bondoc




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.

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