Improving business and consumer confidence to spill over to the residential market
The spread of the Omicron variant of Covid-19 has delayed the much-anticipated recovery of the residential market. The demand in the pre-selling market remains anemic while the slow return of foreign professionals to the country has kept the demand for residential leasing muted.
However, Colliers recommends cautious optimism for the residential market, as improving business and consumer confidence will likely spill over to the residential market. According to Joey Roi Bondoc, Associate Director and Head of Research: “The Philippine economy is bound for rebound in 2022. We see the economic expansion supporting demand in the residential sector, whether in the pre-selling or secondary markets. While we saw initial headwinds at the start of the year, especially the spread of the Omicron variant, the gradual return of foreign professionals and turnaround in business and consumer confidence should help fuel the take-up of more residential units. We also see rents and prices recovering in the next 12 months. These indicators bode well for the residential market.”
Colliers encourages residential developers to continue lining up projects, both condominium and horizontal developments (or house & lots), in line with the anticipated recovery of the economy and as more professionals return to traditional offices located in central business districts. Developers are also urged to implement the gradual and cautious reopening of showrooms and monitor the return of demand for co-living facilities as Metro Manila traffic reverts to prepandemic levels and employers encourage workers to report on-site.
