Maximizing potential of a resurging Philippine real estate
The Philippine economy, recognized as one of the fastest-growing economies in Southeast Asia, has been marked by resilience and recovery in the first half of the present year, which gives a significant boost to the country’s vibrant real estate industry.
Joey Roi Bondoc, research head of Colliers Philippines and known as a global leader in real estate services and investment management, highlighted that the Philippine economy is making good progress. It is already beating expectations with a 6.3% growth in the second quarter and is even higher than the 6.1% gross domestic product growth for the first half of the year.
Much of this impressive growth comes, for one, from the steady increase of overseas Filipino workers (OFWs), which are currently sitting at 11 million, who bring $3 billion every year. They have been a key player in driving economic expansion — from domestic spending, personal consumption, food and beverage, and retail spending, among others. These remittances were instrumental in fueling residential purchases in the country, across segments in the sector.
Sustaining momentum in office demand
This year, the office sector is on a rollout, especially with a noticeable increase in office space demand. A lot of businesses are still occupying office spaces, whether traditional companies, big corporations, or government agencies across Metro Manila. Overall, demand in business districts is stable and bringing positive developments, Mr. Bondoc explained.
“Bound for rebound — this should be the mindset of Philippine property stakeholders despite headwinds in the market. What observers and stakeholders need to realize is that the Philippine property market continues to expand and is standing on solid and sustainable growth pillars,” he said.
Expanding outside the metro
Hillside Ridge at Southmont
In the residential sector, rents and prices in the Metro Manila condominium market jumped by 19%. Positive changes are seen in these rents and prices as they start to improve, especially driven by a strong and consistent appetite for horizontal living.
Horizontal demand is growing especially in Southern and Central Luzon, although far from the peak demand figures that were seen in 2018 and 2019. This shift is benefiting cities outside the metro, driving developments of master-planned communities, integrated townships, and infrastructure projects.
“The good news is that the demand for horizontal remains unequivocal, and definitely the take-up appetite for horizontal is stable and outside of Metro Manila, Central Luzon and CALABARZON,” Mr. Bondoc said. The shift to suburban living is likely to stay as property developers are encouraged to keep grabbing those growth opportunities in and outside the metro.
Valuing upscale demand
The Veranda at Arca South
Also seeing a significant boost is the upscale and luxury condominium market. High-end condominiums are dominating the market as it sees consistent demand, making them more attractive for investors by marking good prospects against inflation. “If you look at trends that developers are implementing across Metro Manila, we’re seeing greater take-up, greater launches of upscale and luxury condominiums, and the horizontal demand for take-up remains aggressive. In fact, it is growing,” Mr. Bondoc said.
The residential market is on the lookout for becoming an attractive investment market. Forecasts for this market suggest steady growth, fostering a positive sentiment in terms of residential demand. As Mr. Bondoc noted, it brings less volatility, rental growth, and better capital appreciation.
Colliers’ report also notes the cuts in interest rates will significantly impact key segments, including office, residential, retail, industrial, and hotel. This shows that the Philippine economy is on track for a strong rebound.
Maximizing quality investment choices
The Philippines’ thriving economy is keeping the momentum of optimism for real estate and property development. Looking ahead, exciting prospects are seen in the sector, including developments in business districts for office spaces, growth opportunities for residential players outside the metro, and the interest rate cut benefiting various segments.
Evo City South District
With this current economic upswing and industry growth, leading upscale property developer Alveo Land is at the forefront with a strong portfolio of master-planned developments optimizing a changing real estate landscape. To date, Alveo is serving as a key player of quality real estate investments across the country.
With positive office demand, Alveo Land has prime developments located in key cities within the metro. Among these available office-for-sale developments are Stiles Enterprise Plaza, a two-tower office condominium in Circuit Makati that connects businesses to a variety of entertainment and cultural spaces; as well as The Gentry Corporate Plaza, located at the heart of the Makati Central Business District. Meanwhile, Tryne Enterprise Plaza in Arca South, Taguig offers a vibrant working environment for enhanced work efficiency.
Alveo Land also introduced more prime horizontal developments outside the metro. In Laguna, Alveo Land continues its strong foothold in Nuvali with its latest residential offering, Sereneo. In nearby Cavite, the developer recently launched Caleia in Vermosa, a lively suburban community seamlessly surrounded by greenery. There is also its latest residential village in 800-hectare Southmont, Verdea, which focuses on modern living and natural tranquility. Alveo’s play in the Evo City estate, on the other hand, has both residential and commercial lot offerings available.
The Lattice at Parklinks
Alveo also continues to redefine city living experiences through its premium condo developments. Its latest portfolio includes Park East Place, a residential tower in Bonifacio Global City (BGC); Orean Residences, a two-tower premium condominium in Vertis North Quezon City; The Lattice at Parklinks with a superior parkside location in C5-Pasig; and Nuevo at Cerca, a refreshing mid-rise address along the Alabang corridor.
Vertis North
Ranging from office to residential, Alveo’s various developments offer solid investment opportunities in the real estate sector that foster vitality and resiliency in the overall economy. Complementing the country’s strong economic growth, Alveo’s scale continues to flourish, making it a worthy choice within the country’s real estate resurgence.
