2H2022 Trends in PH Property Market
The first half of 2022 was a remarkable period of development for the property market, as pandemic restrictions eased and the Philippines . swore in the new administration
Some of the most notable trends were the fast-tracking of infrastructure developments as the previous admin ends its term, appeals for better connectivity facilities to support remote work, and the rebound in office leasing activities and condo rentals in the central business districts because of the return-to-work order. In May, the Bangko Sentral ng Pilipinas hiked interest rates to curb the rising inflation.
These trends paint the backdrop of the real estate sector as it enters the second half of 2022. For the most part, industry analysts are optimistic that the industry will sustain its recovery momentum for the rest of the year and beyond.
On August 31, the highly anticipated The Outlook 2022: Philippine Real Estate Conference will tackle residential and office trends that are influencing the property market. Experts from different real estate companies and related industries will headline the distinguished panel.
In the meantime, these are the prevailing trends eyed for the second half of 2022:
Luxury Residential Properties Will Remain Stable
High-end properties showed resilience amid the health crisis. According to property consultancy firm KMC Savills, this segment will continue to be stable, especially the condo market, as mentioned in this Business World report. They explained that high net-worth individuals are expected to renovate units in major central business districts to take advantage of higher returns in the future.
The pandemic compelled a surge in home improvement, in response to prolonged stays indoors. During the height of the crisis last year, KB Realty Group’s trend report showed that spaces promoting productivity, leisure, and wellness have been especially popular among property seekers.
Demand for Mid-Cost Houses May Be Fueled by OFWs
According to the 2Q2022 report from KB Realty Group, houses followed by land attracted the most number of leads for residential properties for sale under P6M in the second quarter of the year. The leads for houses for sale within that price segment were for ‘house and lot’ and ‘townhouse,’ with the former getting the majority of leads.
The demand for mid-cost houses may be propped up by the projected growth of overseas Filipino workers’ remittances. As mentioned in this Malaya report, OFW remittances increased to about $35 billion in 2021, and are expected to increase by 3.5 to 5.5 percent this 2022.
The Home Becomes a Relaxation Destination
The 2Q2022 report from KB Realty Group revealed the most searched amenities for properties for rent and for sale: airconditioning, WiFi, swimming pool, gym, and broadband internet. Taken together, these popular facilities point to the growing need for the home to become a relaxation destination, where one can work, play, and connect with others without a hassle.
This redefined essence of the home is one more key discussion point in the upcoming The Outlook 2022: Philippine Real Estate Conference. Thought leaders will talk about the role of location and amenities in creating a relaxing home.
BPOs Poised to Contribute to Office Take-Up
Property consultancy firm Lobien Realty Group expects 20 percent of the two million square meters of vacant office space in Metro Manila will be taken up by information technology-business process management (IT-BPM) companies over the next six months as employees return to the office, Malaya reported. This is about 400,000 square meters of office space in the capital region.
Aside from BPOs, Philippine offshore gaming operators (POGOs) may also contribute to strong office demand. While there was no exact forecast, Lobien Realty Group provided a reference for the potential of this market, saying that online gaming operators used to occupy as much as 1.5 million square meters of space from 2015 onwards.
The key factors that will entice POGOs to return to the country include the new government, more precise regulatory and taxation guidelines, relaxed mobility restrictions given the continued vaccination program, and non-recurrence of coronavirus surges.
Provincial Cities Accommodate Businesses’ Expansion Plans
Locations outside Metro Manila have seen tremendous demand amid the pandemic. As the capital region battled the high number of coronavirus cases, provincial areas became attractive for businesses looking to expand or improve continuity plans. Although the pandemic situation is stabilizing now and restrictions are easing, enterprises are likely to pursue setting up shop in provincial cities as they have already discovered the potential to grow outside Metro Manila.
Colliers, for one, identified Bacolod as a “major outsourcing player” outside the capital region. The property consultancy firm said that the completion of more office space in the area would make the location more competitive in the next years and entice more businesses. Bacolod was included in the first batch of Next Wave Cities launched in 2010.
Overall, the real estate sector is on its way to a sustained recovery in the second half of 2022. More residential and office trends will be highlighted in the upcoming The Outlook 2022: Philippine Real Estate Conference on August 31, 2022.
The event is co-presented by KONE and in partnership with media organizations Philippine Daily Inquirer, Malaya, Manila Standard, Manila Times, Business Mirror, Sunstar, Real Estate Blog PH, Mediablast Digital, Property Finds Asia, and Village Connect. The silver sponsors are Maximus and Gorenje, while the bronze sponsors are Metromart, Shopee, Zalora, CleanSource Solution, BDO, BPI, and RCBC.
