The Philippine property market faced significant challenges in 2024, grappling with a sizable inventory of unsold and unoccupied condominium units and office spaces in Metro Manila to continued correction in lease rates and rise in vacancies, brought about by the exodus of Philippine offshore gaming operators (POGOs).
The past 12 months offer lessons on what developers need to do to outmaneuver headwinds in a constantly evolving property market and the tailwinds or opportunities they need to maximize to flourish in 2025.
Game-changing reforms
There are developments that bode well for the Philippine economy.
Measures enacted by the Marcos administration, for example, should play a crucial role in helping the Philippines position itself as a foreign direct investment (FDI) hub in the region.
These FDIs should have positive multiplier effects to the Philippine property sector.
One is the implementation of Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), which updates the country’s tax incentives to be globally competitive.
We see CREATE MORE having a positive impact on the industrial sector, which has seen sustained growth even at the height of the pandemic due to exponential rise in demand for cold chain facilities and third party logistics providers.
Industrial park developers such as Ayala Land and Filinvest Innovation Parks are expanding their footprint in Central and Southern Luzon—two of the country’s major industrial corridors. These developers are welcoming more locators into their industrial spaces, including manufacturers of electric vehicles, a sunshine sector for the segment.
Industrial demand spilling over to residential
Colliers sees this growing demand for industrial facilities spilling over to the residential segment—one of the major reasons why property developers are starting to integrate residential projects into their industrial parks.
The growing interest from Korean and Japanese manufacturers, in particular, is likely to stoke demand for golf communities that feature not just a golf course but also residential projects.
Colliers believes that golf communities with vertical residential developments are likely to attract great interest from local and foreign travelers (including retirees), while horizontal projects within these estates are likely to corner take-up from domestic travelers and Filipino investors.
Source: Inquirer.Net
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