The Philippine economy contracted for the fifth consecutive quarter in Q1 2021. This was primarily due to a surge in COVID-19 cases and reimposition of lockdown restrictions. Credit rating firms and multilateral lenders have downgraded their economic forecasts for 2021. Colliers believes that the economy’s recovery is likely to depend on the success of the vaccine rollout. In our view, economic recovery should have a positive impact on the country’s property sector in 2022.
In our view, tenants should take advantage of the tenant-favorable office market by implementing blend-and extend strategies or by securing lower rental rates in exchange for longer lease terms. Residential developers should also seize opportunities in the market by tapping demand from the overseas Filipino market.
Meanwhile, mall operators should continue accelerating omni-channel strategies as well as convert and repurpose vacant physical retail spaces.
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