The Philippine property sector is sizzling with unoccupied spaces carried over from 2020, which are bound to keep prices in check this year, property consultants said.
Office and residential vacancies will remain elevated, with the former potentially hitting a historic high this year, as demand from offshore gaming firms and migrant workers only slowly return.
Colliers said, “Overall the decrease in demand will likely result in a rental correction in 2021 before our predicated recovery which should start in 2022.”
KMC Savills agreed, saying, “With completions set for the next year, we expect landlords to become malleable with their current stance on rents.”
It sees residential rates falling 25 to 30% in central business districts like Bonifacio Global City in Taguig and Makati this year, while Colliers sees an increase, albeit a measly 0.5% year-on-year.
Residential developers slowed down completion of new projects last year by as much as 70%.