The Philippine real estate industry is forecast to maintain its growth and remain resilient in 2019. This is based on research and data gathered by industry leader JLL which reported an upward trend in the office, residential, retail, and hospitality sectors of the Philippine property market in 2018.
In 2018, an estimated 1 million square meters of office space was added to the current stock – whereby 72% of the 9.1 million existing office space has been leased out. Average vacancy of existing office space remained manageable at 7%. Identified as leading space occupiers as of the 4Q 2018 are Business Process Outsourcing (BPO), Online Gaming and Flexible Workspace providers.
Office rents, meanwhile, maintained its growth backed by solid demand- despite construction delays and headwinds brought forth by interest hikes, delayed Philippine Economic Zone Authority (PEZA) accreditations on buildings and apprehensions on the Tax Reform for Acceleration and Inclusion (TRAIN) 2 law. Capital values also gained steadily due to the sound business environment which continued to buoy investors’ interest.
Residential condominium supply grew in 2018 with approximately 35,000 units added to the total existing stock. Overall, total cumulative stock last year reached 338,000 units with majority of the stock located in Quezon City followed by Makati City and Taguig City.
Strong demand was observed for newly completed residential units and pipeline of projects from the upper-mid to luxury segments in Makati and Bonifacio Global City (BGC).
The leasing market in Makati Central Business District (CBD) and BGC was mainly driven by the influx of expatriate employees from BPO and online gaming firms while the sales market was fueled by the demand from local and foreign high net worth individuals.
Read more: https://business.inquirer.net/263553/the-outlook-of-the-philippine-real-estate-industry-in-2019#ixzz5cZFS3ymC
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