Property consulting firm Leechiu Property Consultants (LPC) said they expect double-digit growth in the Philippine property market this year as real estate values seen reaching all-time highs across all sectors.
“We’re optimistic about the growth in the real estate sector. More or less, it will be a double-digit return across many assets, classes,” LPC’s CEO David Leechiu said.
Leechiu mentioned that the industry has to make ample preparation for when the central bank plan to bring down the reserve requirement from 18 percent to 8 percent by 2021.
“That is going to release trillions of pesos into the economy, and a big chunk of that will find its way to real estate,” he said. “(This will result in) lower interest rates and more investible funds for real estate.”
He also said that transactional values are expected to maintain its upward trajectory in the office, residential, and industrial segments, with the information technology-business process management (IT-BPM) and Philippine offshore gaming operators (POGOs) continue to be significant demand drivers for office space.
“The IT-BPM industry continues the upward trend since 2017 with now having 102,000 square meters (sqm) take-up in three months (of 2019). We expect it to grow at a faster pace and reach the forecasted 450,000 sqm take-up in 2019 should there be more PEZA (Philippine Economic Zone Authority) spaces available in the market,” he noted.
IT-BPM firms are also returning to the country after completing their diversification program from the Philippines, with or without the second package of TRAIN.
Moreover, Leechiu said industrial properties have kept pace with the trend of rising prices as online retailers seek to meet warehouse expansion requirements.
“The rise of the E-Commerce industry in the Philippines is driving up the need for warehouse space of online retailers,” he said, noting local third-party providers and food retailers are also contributing to the demand for warehouse space.
Source: PTV News