Business

Impressive Q1 growth sets stage for more property projects

Katlene O. Cacho

FOLLOWING the impressive 8.3 percent first-quarter growth that made the Philippines the fastest growing economy in the East Asian region, players in the real estate sector should continue lining up projects in anticipation of improving investor appetite.

“Colliers believes that this level of economic output sets the stage for accelerated gross domestic product growth beyond 2022,” said Colliers Philippines in its latest market report.

Colliers said a number of developers, investors and occupiers took a wait-and-see stance prior to the May 9 national elections, and the election of a new set of leaders, along with the continued implementation of pro-property reforms such as accelerated infrastructure construction should guide property firms with their expansion plans over the next three to six years.

For the office sector, Colliers said the return-to-office mandate should support the recovery of office space absorption.

“The improving Covid-19 situation and the passage of economic stimulus measures should boost office space take-up for the remainder of the year,” the consultancy firm said.

For the residential sector, the recovery in the leasing market will be driven by local employees starting to work on-site and the gradual return of expatriates. Residential demand should also be anchored by an increase in office leasing and an improvement in business confidence.

Colliers is also optimistic about the retail sector. It said that the deescalation of more urban cities to alert level 1 and improving vaccination rate should increase consumer traffic and consumer confidence.

“Various business groups reported that malls have reached about 63 percent of their pre-Covid-19 level,” Colliers said.

Moreover, Colliers noted that the industry is eagerly awaiting the laying out of reforms that the new set of leaders will implement over the next three to six years. It said that these should influence the property sector’s development strategies during the period.

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