PRIME Philippines conducted its first webinar of the year last February 2, 2022. It’s CEO Mr. Jet Yu, together with PRIME’s team of experts, discussed invaluable insights while initiating discussion on the current development within the property market and the potential trends to expect in 2022.
We kick things off with news from the CEO of PRIME Philippines that 2021 realized a 7.7% GDP growth rate by the 4th quarter of 2021, higher than the initial projection. Mr. Jet Yu then discusses how “2021 was a year of recovery, we saw a lot of businesses that were able to adapt. Compared to 2020, it was not much of a shock to businesses. Although we are still in the pandemic, we hope we are approaching the endemic soon. A highlight about this pandemic crisis is that it is giving rise to new industries. thus, adaptation, innovation, and flexibility is key to surviving this crisis.”
Highlights of the 2022 outlook which include in-depth discussion on land value resiliency, office decentralization, nationwide industrial demand, and provincial housing demand.
With key points regarding the land value resiliency, we can have an optimistic forecast for the real estate market. “Prime lots are retaining value despite fewer buyers due to sellers holding strong on their prized properties and rejecting offers from buyers… 2022 will see more companies liquidating their non-core assets to improve their liquidity which in turn can affect land values, said Mr. Jet Yu.
Mr. Cholo Florencio also gives an overview regarding nationwide industrial demand. “The industrial sector has affected the whole real estate landscape of the Philippines… 2021 realized a peak of 1.1 million square meter of demand for the year, spread across the various provinces.” Where he also mentions how greater metro manila is booming for the industrial sector.
Regarding office decentralization however, Ms. Aubrey Blancas gives us a glimpse of current availability and the progress since the onset of the pandemic. “The office supply is seen to increase in 2022, due to the completion of developments in Makati and Ortigas which were put pushed back due to the delays in construction. Upon completion, an approximate 2.2 million square meters will be added to supply”
On a brighter side, adaptation and innovation are evident as key driving factors that sustained the retail industry markets, with Mr. Sondi Tuazon sharing how “Most of the new retail developments within 2021 are located outside metro manila. And that the retail industry starting 2022 is seen to be moving towards mobility. Trends include an increase in drive-through formats, pop-up stores, cloud kitchen, and online sales channels”
Discussing briefly about the outlook in the Visayas region, Ms Ruth Coyoca shares that “Cebu city continues to be the office hotspot in the metro, with the office sector is improving as BPO expansion continues. Cebu housing demand persists, with developers clamoring for land for new projects. For the industrial sector of metro cebu, there is limited availability with high demand”
And rounding off the highlights for the webinar is the panel presentation, where Mr. Ricardo Lagdameo of Damosa Land shares how the “Residential sector in Mindanao is going to be very robust in 2022. Real estate is seen as a really solid asset class. The hotel sector is seen to be more stable this year, and is estimated to be close to pre-pandemic levels by the end of the year. For investors looking to invest in Mindanao, this is still a good year, there are still good deals across all industries – retail, office, industrial, etc”
PRIME Philippines is a privately-held Filipino-grown real estate advisory firm, recognized as the industry’s youngest and fastest-growing real estate advisory company in the Philippines; trusted by the top 100 developers in the country and by several Fortune 500 companies around the world.
The company has a track record of reinvigorating underperforming projects, selling difficult commercial properties, and is the only commercial real estate consultancy firm with a dedicated division for handling retail projects.
PRIME Philippines is breaking boundaries and challenging the norms, with expertise beyond Central Business Districts and in fully understanding and tapping the local market while continuously facilitating the entry of different multinational entities.
To watch the full webinar and listen to the in-depth discussions and the panel Q&A joined by Mr. Ricardo Lagdameo & Damosa Land, Inc. for being part of our panel discussion, you may view the online recording thru https://www.youtube.com/watch?v=q74UD20o9YI