By: Rizal Raoul Reyes, Business Mirror
The Metro Manila area continues to experience an increase in residential, office retail, and hospitality property assets as demand for real estate remains high from offshoring and outsourcing (O&O) firms and online gambling companies.
Janlo de los Reyes, head of research of JLL Philippines said 673,500 square meters will be added in the retail property segment by the end of 2022. He added the average vacancy for the retail market will reach 3 percent with food and beverage to fashion brands.
He said office demand in Metro Cebu is also growing because O&O firms, online gaming and English as second language schools are looking for it. JLL also reported that residential leasing market in Metro Cebu is experiencing growth because of demand from by high salaried employees while the residential selling market is dominated by investors over end-users. Moreover, Metro Cebu continues to be the largest retail hub outside Metro Manila. Meanwhile, the hospitality property market is boosted by MICE market and tourists.
JLL Philippines country head Christophe Vicic said Davao City is also experiencing a boom in the office property markets driven by O&O expansion while the residential property market is driven by local high network individuals, overseas Filipino workers and leasing activities from local and foreign students.
He said the main demand drivers of the Davao retail property market are expansion from the local brands and locators with existing operations in Davao City. Meetings, incentives, conferences and exhibitions (MICE) business travelers and local tourists, are the main demand drivers. Just like Cebu, supply in Davao across all property markets continues to grow as developers fulfill demand.
Vicic pointed out that the Cavite, Laguna and Batangas industrial property market is expected to add about 40 hectares of industrial land. The overall average occupancy rate of industrial parks in Cavite, Laguna and Batangas is at 97 percent as of the first half of 2019 and is expected to soar.
The further development of various infrastructure projects that will link Cavite, Laguna and Batangas to neighboring areas, especially Metro Manila is expected to attract more foreign investments, taking advantage of an improving transportation system and increasing land value. The significant growth of e-commerce has reinvigorated the logistics industry, which drives demand for industrial space (i.e., warehouse space) amid the increasing requirement of locators for distribution centers.
“The Asia-Pacific region’s increasing and aging urban population has seen a growing demand for alternative residential arrangements, including student accommodation, coliving, family nursing homes and aged care. With the Asia-Pacific region leading global e-commerce to establish their data storage infrastructure, as well as warehousing facilities for retail goods, the robust rate of consumption is driving increasing investor interest into data centers and logistics in the region,” Couse added.
The article is first published HERE.