PH property sector poised for growth in 2018

The Philippine property sector is poised for another stellar year in 2018. With the promising demand for flexible workspaces and the growth of residential and similar markets – further boosted by the current administration’s “Build, Build, Build” agenda – the industry is foreseen to retain its stability, continuing its unstoppable momentum.

The significant economic growth as well as the diversified factors that cut across markets in office, retail, and warehousing, residential and other industrial sectors are perennial drifts that materialize such strong performance in the industry.

Here are the trends in the property sector anticipated to shape the year:

At the core of the administration’s Dutertenomics lies an unprecedented plan to disburse more than Php8 trillion on consignments of ambitious projects targeted from 2017-2022, heavily skewed towards infrastructure.

These accelerated groundwork initiatives are envisioned to increase the productive capacity of the economy and likewise create jobs, increase incomes, and fortify the investment climate leading to sustained inclusive growth.

As high condominium occupancy demand continues to see growth in major cities such as Metro Manila, developers carry on venturing into infrastructure projects in residential spaces across the country.

Major industry players such as Megaworld, SM Prime Holdings and Century Properties are some of the biggest property frontrunners in the country, which focuses on integrated development for the benefit of consumers, developing prime living and co-existing spaces for end-users.

In fact, the aforementioned top developers were given recognition by the PropertyGuru Philippines Property Awards, capping the Best Developer, Best Commercial Development, and Best of the Philippinesawards respectively in its annual event in 2017.

For the longest time, the business process outsourcing (BPO) sector has consistently driven the demand for residential condominiums and office spaces in the country. However, a shift geared towards the growth of offshore gambling may eventually steer such trend this 2018.

In a recent study by Colliers Philippines, offshore gambling was revealed to have filled the gap left by the BPO sector, which reduced its pace last year due to US’ protectionism stance. Likewise, gambling investments and activities have in fact boosted condo sales and office occupancies in Metro Manila and even Cebu.

In Metro Manila alone, the office inventory counts for a gigantic 9.7 million sqm, and is even expected to increase at a doubling rate in the coming years. Growth in population and increasing urbanization demand for better and more flexible working spaces – and as these factors continue to become the norm, the need for developers to adapt to the changing needs of the market has never been more crucial, eventually making the need for interesting workspaces that will facilitate productivity, efficiency and mobility count as basic privations for the working populace. Buildings or architecture in general are weighty contributors to climate change, accounting for 36 percent of the national energy consumption. As critical environmental issues continue to aggravate on an alarming scale, there is a clear need for sustainable and greener architecture for both businesses and homeowners.

To ensure a sustainable environment, the Philippine Green Building Council (PhilGBC), a national nonprofit organization co-founded by Philippines Property Awards judge Raymond Rufino, promotes the dissemination of knowledge on green building practices to the property industry, campaigning for the transformation of design, construction and management methods towards creating greener buildings and spaces. PhilGBC developed BERDE (Building for Ecologically Responsive Design Excellence), a local green rating scheme.

Currently, real estate developers in the Philippines are already realizing the importance of practicing green architecture that meet with the global standards. Currently, more than 30 structures across the country are given certification by the Leadership in Energy and Environmental Design (LEED). LEED is a world-renowned green building certification method developed by the non-profit organisation U.S. Green Building Council (USGBC).

The efforts of ArthaLand, one of the leading green developers in the country, were recognized not only domestically, receiving the Special Recognition in Sustainable Design at the 2016 PropertyGuru Asia Property Awards regional grand final in Singapore, for its BERDE- and LEEDcertified development in Bonifacio Global City.

Returning in its 6th annual year, the PropertyGuru Philippines Property Awards is encouraging builders and developers across the country to emerge and make their mark in the industry across the Asia-Pacific region.