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Colliers Quarterly | Property Market Report | Q4 2020 | Philippines

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We are pleased to share that our property market reports for the 4th quarter of 2020 are now available. Read  key updates on the Philippine property, covering office, residential, hotel and industrial sectors and our data-supported recommendations to industry stakeholders.

Not quite there yet
Opportunities for landlords and tenants as pace of recovery of Metro Manila office leasing remains uncertain
We continue to see an uncertain office leasing environment in Metro Manila over the next 12 months. Despite this, we see some firms, especially those that provide essential goods and services, expanding and absorbing office space.

Overall, the decrease in demand will likely result in a rental correction in 2021 before our predicted recovery which should start in 2022.

Amid a challenging market, we recommend landlords and tenants focus on opportunities in the current market environment.

Landlords should be proactive in offering alternative leasing models to tenants; be flexible to tenants’ request for concessions and adjust construction pipelines to prevent further erosion of rents across the capital region.


Price and Rental recovery delayed to 2022
Projected rebound of office space absorption in 2022 likely to spill over to the residential market

A precarious Metro Manila office leasing market continues to hamper the recovery of the capital region’s pre-sale and secondary residential markets.

Prices and rents corrected in 2020 due to dampened demand and we do not see a recovery in the next 12 months.

Pandemic-induced construction delays continue to limit the development of new units, while developers held off launches due to anemic take-up.

To take advantage of opportunities in the market and tap pent-up demand once market sentiment starts improving, Colliers recommends that developers explore creative leasing models, consider fringe areas for upcoming projects, and monitor attractive locations and price segments for pre-selling residential developments.


Hotels pivot to stay afloat
Disappointing arrivals and tourist expenditures compel hotel operators to innovate as future of global air travel remains bleak

The Philippine leisure sector continues to suffer from sluggish arrivals of foreign tourists and subdued spending from local tourists.

The hotel market is likely to suffer from delayed completion of new projects as developers factor in a slow recovery.

Colliers recommends that operators continue to target returning OFWs looking for quarantine facilities and professionals searching for flexible workspaces.

Operators should highlight compliance with health and sanitation protocols and take advantage of perks lined up by the government for the sector.

Colliers also encourages operators to expedite the implementation of innovative and technology-driven services.


Lockdown economy drives opportunities in logistics
Healthy demand for logistics and warehousing driven by e-commerce and the emergence of a lockdown economy

We recommend developers should further modernize their facilities to capture demand, invest in the cold-chain sector in preparation for the government’s vaccine program, and explore viable land outside of CALABA such as areas in Northern Luzon.

We expect a healthy demand for the warehousing sector supported by the growth of ecommerce and the emergence of a lockdown economy.

We project a more active take-up in 2021 and 2022 due to manufacturing and logistics investments. Demand from the manufacturing sector will likely be led by firms in the essential goods industry such as food, beverage, and pharmaceuticals.



Colliers Quarterly | Property Market Report | Q4 2020 | Philippines

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Joey Bondoc

Associate Director



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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