Bright prospects for Phl property investments

Strong investor appetite for real estate in the Philippines is expected to continue as the country’s property landscape remains one of the most promising in Asia, property consultancy firm Colliers said in its latest Asia-Pacific report.

In its Asia Market Snapshot report for the first quarter, Colliers took note of the country’s sustained economic expansion and planned higher infrastructure spending as significant drivers for the growth of its property market in the coming quarters.

“We see bright prospects for property investment in the Philippines due to strong economic growth and pledged government infrastructure spending,” said Terence Tang, Colliers managing director for Capital Markets and Investment Services in Asia.

Colliers said the office and retail sectors were among the major drivers of the Philippine property market in the first quarter, with the take-up for office space driven by non-BPO firms like offshore gaming companies, while the retail sector expansion was fueled by a strong consumer-based demand.

For the second quarter, Colliers said the industrial sector is likely to step up its performance in line with the growing demand for manufacturers and retailers’ distribution hub to support retail operations.

“The government efforts to attract more foreign manufacturing companies are manifested by increasing interest from Japan, Korea and China,” it said.

The retail sector is likewise seen sustaining its growth as the completion of community and neighborhood malls in the last few quarters have provided increased consumer spending.

Colliers said fast fashion and food and beverage are the key sectors in a consumer market mostly represented by the millennial generation.

“The Philippine economy was one of the best performing in Asia with 6.9 percent GDP growth in 2016. The real estate sector remained in a bright spot and property analysts together with industry players forecast the growth surge will spill into the first quarter of 2017,” the report said.

“The government aims to spur growth further with strengthened foreign relations and increased infrastructure spending that will expand development not just in Metro Manila but also outside the country’s capital,” it added.

For the entire Asia, Colliers said the beginning of 2017 saw a strong carryover of the robust investment activity from 2016, which was bolstered by improving economic conditions globally.

“Moreover, added stability in the regional political climate is expected to bode well for Asian property markets in the coming quarters,” it said.