Skip to main content Skip to footer

Market Intelligence | Philippines June 15, 2022

Hero_Image_061522

This week, Colliers Research provides insights on Central Luzon being pitched as the Philippines’ next manufacturing and logistics hub, thanks to the region’s buoyant property sector and highly developed infrastructure. Furthermore, the Bangko Sentral ng Pilipinas reported that loans granted by banks rose by 0.7% YoY to PHP2.0 trillion as of end-March 2022 on the back of buoyant residential real estate loans, credit card receivables, and salary-based general-purpose consumption loans.

Central Luzon pitched as manufacturing, logistics hub

SUMMARY

The Trade department is considering Central Luzon as a manufacturing and logistics hub. According to Regional Director Leonila Baluyut, the region hosts industrial assets that “can support such a development strategy” with “plenty of growth opportunities.” Pampanga has an international airport in Clark, Bataan has a freeport area, while Tarlac has Luisita Park. The Trade official added that the region can take advantage of various pro-investment measures such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, and the amendments made to liberalize the Foreign Investments Act, the Public Service Act, and the Retail Trade Liberalization Act.

RESEARCH VIEW

Colliers believes that the modernization of Clark International Airport is likely to play a crucial role in strengthening Central Luzon’s stature as a manufacturing and logistics hub. The development of a passenger and cargo railway system should also support the region’s growth. The region’s economy grew by 7.4% in 2021, above the national GDP expansion of 5.7% in 2021. Colliers believes that the region will benefit from a sustained economic growth in the next 12 to 24 months. Aside from industrial park expansion, developers of office buildings and residential towers continue to invest in the region. Aside from Pampanga, provinces such as Tarlac and Bulacan attract national developers. The completion of the New Manila International Airport in Bulacan should also raise the region’s attractiveness as a property investment hub. Major developers are also taking advantage of the region’s improving infrastructure which should benefit both end-users and investors.

CLICK HERE TO VIEW ARTICLE

Big banks, consumer loans expand on improved economic conditions

SUMMARY

Data from Bangko Sentral ng Pilipinas (BSP) or the central bank reveal that consumer loans granted by universal, commercial, and thrift banks rose by 0.7% YoY to PHP2.0 trillion (USD37.9 billion) as of end-March 2022 after four consecutive quarters of contraction in 2021. BSP governor Benjamin Diokno said the growth “came largely from residential real estate loans, credit card receivables, and salary-based general-purpose consumption loans. These outpaced the declines in motor vehicle loans and other consumer loans.” The incoming Finance chief attributed the improved outlook to “expectations of availability of more jobs and permanent employment, additional and high income, and effective government policies and programs, such as the easing of quarantine restrictions, availability and rollout of vaccines, and provision of financial assistance.” Residential real estate loans covered 44.6% of consumer loans in March, outpacing credit card receivables and motor vehicle loans.

RESEARCH VIEW

The Philippine economy is starting to recover from the adverse impacts of Covid-19. The country was the fastest growing economy in East Asia in Q1 2022 after recording an impressive 8.3% growth. Economic managers are now forecasting GDP growth of between 7% and 8% in 2022. Colliers believes that a sustained growth is likely to improve business and consumer sentiment for the remainder of 2022. Businesses, especially those providing information technology (IT)-enabled services and back office support, continue to occupy office space and more micro, small, and medium enterprises (MSMEs) have reopened as a result of relaxed mobility restrictions. Overall, these should contribute to the retail and office segments’ growth and positively influence space absorption and lease rate recovery post-2022. An improving business climate should also entice developers to launch more condominium and horizontal projects. However, property stakeholders should closely observe the impacts of rising inflation and interest rates as well as disruptions to global supply chains due to the Ukraine–Russia conflict.

CLICK HERE TO VIEW ARTICLE

 

CLICK HERE TO VIEW PREVIOUS MARKET INTELLIGENCE REPORTS


Related Experts

Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

View expert

Martin Aguila

Senior Analyst

Research

Manila

Martin Aguila graduated in February 2019 from the De La Salle University with a degree in AB Economics. He joined Colliers Philippines in the same month and works as an analyst under the Research department. He has presented in several property market briefings with developers and investors and has assisted in the preparation of reports related to property such as Market Intelligence, GDP Flash, Quarterly Market Updates and Radar Reports. He also helps the team maintain and develop databases.

View expert

Brent Respicio

Research Analyst

Research

Manila

Brent Respicio graduated in 2017 from University of the Philippines Los Banos with the degree BS Economics. Brent is a Research Analyst for the Research Department. Prior joining Colliers, Brent already worked for a real estate firm as a researcher as well. He is involved in conducting quarterly reports on residential and industrial sector and helps in maintaining databases for the use of research and other departments. 

View expert