The results of our polls during the Q3 2021 Philippine Property Market briefing reveal general optimism about the post-pandemic outlook of the real estate market.
We conducted a series of polls during our Q3 2021 Philippine Property Market briefing and the results reveal general optimism about the post-pandemic outlook of the real estate market. First, the government’s ramped-up vaccination program has achieved significant gains: 33.6 million Filipinos are now fully inoculated against Covid-19, which is equivalent to approximately 44% of the country’s eligible population. As a result, cases have been decreasing over the last few weeks and employers are expecting more of their employees onsite by 2022.
In the residential sector, the result of one of our poll questions reveals that investors and end-users are being enticed by extended and flexible payment terms in buying condominium units, a strategy being employed by some property developers to attract customers and boost sales. Other innovative schemes or promos being offered include no spot down-payment, early move-in, free appliances/furniture, and no reservation fee.
In the retail sector, we see that more consumers are likely to visit physical malls with the easing of restrictions. With Metro Manila now on Alert Level 2, age-based mobility restrictions within the metro is now lifted and increased capacity is allowed for businesses and other activities, such as restaurant dine-in, beauty salons and other personal care establishments, and religious activities. We have observed that the fourth quarter is perennially a strong period for retail spending, driven by employees’ holiday bonuses and increase in overseas Filipino worker (OFW) remittances.
We recommend occupiers finalize their split-operations plans and prepare for employees to return to the office; residential developers to be more innovative with their promos and while continuing flexible payment schemes to re-capture demand; and mall operators should re-configure their layouts to maximize available space, introduce alternative dining options and continue highlighting health and safety protocols.
