Residential and Office Trends Reshaping the Market
November 2, 2022
Having spent more time at home and explored new work arrangements, property seekers in the new normal have changed their priorities when it comes to selecting a new home and office. In the first half of 2022, safety-related amenities such as alarm systems and round-the-clock security comprised roughly 11% of all amenity searches on Lamudi. More property seekers searched for study rooms in 1H 2022 compared to 1H 2020, where the term was yet to be among the top twenty amenity searches on the platform.
Offices: “What was frivolous is now necessary”
Industry experts have observed these changes in buyer and renter perspectives towards what they deem necessary in the spaces they spend most of their time in. While office occupancy remains high, use of the space is much lower.
“Foot traffic is [just] not the same [as pre-pandemic levels] in offices, and it affects the retail spaces in lower levels [of the office building] […] Offices are 100% leased out, but utilization is at 40% to 50%,” said panelist Michael McCullough, Co-founder of KMC Savills, at the Residential and Office Trends Reshaping the Market track of KB Realty Group’s The Outlook 2022: Philippine Real Estate Conference held last August 31st.
Offices are encouraged to be receptive to the post-pandemic wariness towards density within confined spaces as well and the increasingly normalized culture of enabling employees to have more freedom to choose where they physically do their work. “When it comes to smart tech, people flow should be considered at the start of planning,” said panelist Petteri Kyrklund, Service Business Director at KONE Philippines, during the same conference. Incorporating smart amenities and human-centered design in office layouts are some value-adding steps toward attracting more foot traffic in the office, especially when physical attendance is optional.
“Lessees are more intelligent in terms of costs and operations,” said panelist Gie Garcia, Managing Director of NEO Property Management Inc, on the topic of new property renter needs and sustainability.
“Things that were thought of as frivolous back then [pre-pandemic] are now actually necessary,” concluded Richard Raymundo, Managing Director of Colliers Philippines, during the same conference panel. “Touchless [amenities], air-purifying systems in elevators are here to stay […] The scorecard for green and sustainability is a major component of what is asked for from developers, tenants, [and] locators,” he added.
Homes: Designing for work and rest
Small-office home-office (SOHO) units had already started growing in popularity in the early 2010s to cater to students and a growing generation of entrepreneurial homeowners. In the pandemic, what may have been a feature for a specific target market became a home necessity for everyone. The need for a space allocated specifically for work increased as companies rolled out remote work set-ups, and that spatial delineation between work and home grew more important for both productivity and mental health.
Balconies and open spaces not only allow for better air circulation but can also enhance well-being in a home that has, over the years, transformed into a second office. Panelist and Rockwell Land Chief Revenue Officer Val Soliven touched on how more clients have been inquiring about their use of renewable energy – if water is recycled, whether low-flow fixtures are used, how they save on cooling energy, and whether the appliances provided are energy-efficient.
When asked about new property seeker needs, Soliven discussed how the factors buyers take into consideration are still always location and convenience, but with some new design-related additions. “Post-pandemic, [some] design issues [are] more needs than wants – balconies, open space, work-from-home areas,” said Soliven.
