This week, Colliers Research provides insights on the importance of highlighting green and sustainable features to attract office tenants; OFW cash remittances reaching USD2.6 billion in August this year, up 5.1% from the USD2.5 billion in the same period in 2020; and the scheduled opening of the Cebu–Cordova Link Expressway in the first quarter of 2022 – one of several big-ticket infrastructure projects due for completion in the next 12 to 24 months.
Robinsons Land’s GBF Towers aim to be LEED-certified
Robinsons Land Corp. (RLC) eyes getting a Leadership in Energy and Environmental Design (LEED) Gold Certification for their GBF Towers in Quezon City. RLC said that completion for GBF Tower 1 is scheduled in late 2022, while Tower 2 is due to be completed in H2 2023. GBF Towers will be equipped with a full curtain wall façade, LED lights, and variable refrigerant flow (VRF) air conditioning systems. RLC added that these features are perfectly suited to meet the demands of IT-BPM firms.
Colliers encourages landlords to highlight the importance of adopting green and sustainable features in attracting major office tenants. We are likely to see this trend complementing recovery in office leasing demand beyond 2021. In the next 12 to 36 months, sustainable and wellness-certified buildings will cover about 37% of the new supply in Metro Manila. In our view, there will likely be an accentuated preference for sustainable buildings that provide natural lighting and better air quality, among others. Colliers recommends that developers upgrade their buildings through enhanced technologies and re-think office layouts as we see the increasing importance of LEED- and WELL-certified options moving forward.
Cash remittances up for 7th straight month in August
Remittances sent in by overseas Filipino workers (OFWs) grew for the seventh consecutive month in August as host economies have reopened. Cash remittances in August reached USD2.6 billion, up 5.1% from the USD2.5 billion in the same period of last year. In 8M 2021, cash remittances reached USD20.4 billion, up 5.7% from the USD19.3 billion in 8M 2020. In 2021, the Bangko Sentral ng Pilipinas (BSP) or the central bank projects remittances to grow by 6% from a 0.8% contraction in 2020.
Colliers believes that OFW remittances will continue to drive the demand for affordable to mid-income (PHP1.7 million to PHP3.2 million) residential units within and outside of Metro Manila. We have observed sustained take-up for horizontal house and lot (H&L) units in areas outside the capital region such as Iloilo, Cebu, Pampanga, and Cavite. In our view, the completion of infrastructure projects in these locations should contribute to viability of more residential developments. Colliers recommends that developers continue offering innovative pricing schemes and promos to attract buyers.
The Metro Pacific Investments Corp. (MPIC) has successfully connected Cordova in Mactan Island to Cebu City through the Cebu–Cordova Link Expressway (CLLEX). The 8.9-kilometer (5.6 mi) project is slated for commercial operations in Q1 2022. Once completed, the project will serve about 50,000 vehicles daily and will be using full electronic toll collection system and feature Road Weather Information System for road safety.
Colliers recommends that developers monitor the infrastructure projects outside Metro Manila that are due for completion within the next 12 to 24 months including the North–South Commuter Railway, Cavite–Laguna Expressway (CALAX), Cebu–Cordova Link Expressway, and the Davao City Bypass Road. In our view, the allocated infrastructure spending of PHP1.18 trillion (USD23.1 billion) in 2022 should serve as a catalyst to revive demand in the property sector beyond 2021. Developers should be more proactive in lining up their future projects in areas viable for residential development.