Industrial, office segments to lead real estate recovery
The industrial or logistics and office segments are expected to lead the recovery of the country’s property sector amid the COVID-19 pandemic, real estate services firm Colliers International Philippines said. Colliers’ senior manager for research Joey Bondoc said that these segments “have shown the highest resilience.”
While data from the Philippine Statistics Authority showed foreign investments declined 36 percent to P29.4 billion in the first quarter from P46 billion in the same period last year, Bondoc said the firm is still optimistic for the industrial segment as the investments would benefit industrial parks and or warehouses in Cavite, Laguna and Batangas. He added that attracting firms moving out of China would also be beneficial for the industrial segment.
By the end of the year, Colliers expects the vacancy rate to rise slightly to 5.7 percent due to new supply, but this should decline starting 2022 as new manufacturing activities start.
The Department of Trade and Industry is targeting to attract 135 firms moving out of China to set up complementary facilities in the Philippines.
