Attracting more foreign investments, revising tourism, a better infrastructure strategy, and ‘no more lockdowns’ are some of the highlights of President Marcos’ first State of the Nation Address (SONA), which potentially will have a positive impact on the property market.
In this Colliers Flash report, we dissected the content of the President Ferdinand Marcos Jr.’s first State of the Nation Address (SONA) and highlighted their potential impact on the property market.
Attracting more investments
Improving the country’s business environment through enactment of pro-investment measures and economic liberalization measures is important in attracting more foreign direct investments.
The important role that tourism plays in generating jobs especially in the countryside was emphasized in the president’s first SONA. Colliers believes that the gradual recovery of tourism augurs well for the country’s economy, including property players that have established their own leisure-related businesses.
The president ordered ‘full speed ahead’ to amplify his administration’s goal of ramping up and hastening infrastructure implementation across the country. Among the provinces likely to benefit from this infrastructure program are Bulacan, Cavite, Panay, Cebu, Davao, Palawan, Ilocos Norte, and Mindanao provinces that will be traversed by the proposed Mindanao Railway Project.
‘No more lockdowns’ to benefit businesses
The president’s ‘no more lockdowns’ policy is likely to benefit the property market especially retail, office, and hotel segments. Greater mobility should raise consumer traffic in malls; entice more Filipinos to spend vacation outside Metro Manila; and encourage more firms to hold face-to-face events.
Support for migrant workers
Programs for Filipinos working abroad should support the continued deployment of migrant workers and sustain inflow of remittances. Colliers sees the growth in remittances partly supporting the demand for properties in the horizontal housing market.
BPO-supportive education reform agenda
The need to focus on STEM – Science, Technology, English, and Mathematics – courses emphasized by the president in his last SONA is important in ensuring that the Filipino workforce is globally competitive.
Among the priority bills enumerated by the president include the Valuation Reform Bill, the National Land Use Act, and Amendments to the Build–Operate–Transfer (BOT) Law.