Firm sees recovery in PH property sector in 2022
The recovery of the property sector is expected to continue this year as the government eased pandemic-related restrictions and plans no another lockdown.
In a briefing, Colliers Philippines reported that a quicker pace of recovery is seen in the hotel sector, new supply for office space is reverting to pre-Philippine offshore gaming operator (POGO) levels last seen in 2016, while condominium take-up this year is expected to breach the 2021 level.
Colliers Philippines associate director for research Joey Roi Bondoc said hotel occupancies in Metro Manila from January to June this year reached 47 percent, higher than the 44 percent occupancy rate from July to December 2021.
“We attribute the improvement to the gradual return of business travel, especially among investors conducting due diligence; local guests’ growing propensity to spend on leisure, likely supported by a rise in demand from the staycation market in April to June; and a slight rebound in foreign arrivals due to relaxation of entry restrictions,” Bondoc said.
New supply of hotel rooms remain rosy for 2022 to 2024, with projected completion of 2,650 rooms annually, including foreign brands that will open during this period such as Ibis, Pullman, Lansons Place, Westin and Mandarin Oriental.
For the office sector, Colliers Philippines is also bullish as it sees new supply of office space reverting to pre-POGO level of around 450,000 to 550,000 square meters (sqm) annual completion.
“From 2023 to 2026, we forecast the annual completion of about 543,300 square meters,” associate director for office services–tenant representation Kevin Jara said.
Demand for office space in the first half of 2022 rose to 325,100 sqm, up by 62 percent from 200,700 sqm in the same period last year.
“Colliers is starting to see a pickup in demand for office space as more traditional occupiers implement RTO (return to office) and outsourcing firms pursue their expansion plans,” Jara added.
Rental rates are expected to rise in 2023.
Meanwhile, for the residential sector, total take-up for condominium units in Metro Manila is projected to exceed 12,000 units in 2021 as 9,000 units were already sold in the first half of 2022.