Philippine Economy Goes Up: Brokers, Time to Step Up! (Part 1)

Philippine Economy Goes Up: Brokers, Time to Step Up! (Part 1)

philippine economy,property,broker,home selling, office spaces

A view of Makati, a beacon of Philippine economic growth, from one of Swoop’s available listings.

In a forecast by the World Bank, the Philippine economy continues growing for the next three years. The property market for 2018 is also on a promising rise. Swoop is set to help brokers identify which target markets to focus on this year.

In an Philipplne Daily Inquirer report by Ben O. de Vera, the World Bank expects the Philippines to maintain its economic growth compared to other Southeast Asian countries. “The World Bank projected the Philippines’ gross domestic product (GDP) to grow 6.7 percent in 2018 and 2019, before growing at a slightly slower rate of 6.5 percent in 2020,” de Vera highlights.

A steadily growing GDP means an increase in spending power of a country’s populace, translating to a rise of consumers willing to spend. With that growth, the property sector is said to perform strongly according to the latest report of Colliers International Philippines.

gross domestic product, forecast,chart

Out of the Cities, In With Town Living

Both public and private firms are driving to decentralize the overconcentration of everything in Metro Manila. Public infrastructure, including the construction of roads, are ongoing with focus on provinces outside the NCR.

With overcrowding in Metro Manila, townships in nearby urbanized provinces become the solution.

In Colliers analysis, the government’s aggressive expansion of road networks is allowing access to new land – a resource already challenging to have in Metro Manila. This works well with residence developers heeding the call of the market, i.e. an increasing preference to live in 2nd and 3rd tier cities like those in Muntinlupa, Cavite and Laguna. Home seekers are seeing better value in townships offering a live-work-play-shop lifestyle but in more open areas.

For brokers, it’s time to spotlight home listings located in surrounding provinces of Metro Manila-especially areas with ongoing leisure developments such as the Vista Lifestyle Centers being developed all over Cavite, DoubleDragon’s 6.2 hectare lot development in Tarlac’s Luisita Industrial Park, Ayala’s 31-hectare industrial park in Alviera estate in Porac, Pampanga, and Filinvest’s 100-hectare industrial estate in Clark Green City.

Mary Ann Ll. Reyes of Philippine Star point out, “Residential leasing in Metro Manila remains challenging, but it sees opportunities in workers’ dormitories in key business hubs in major business districts and affordable house and lot developments in urban areas outside of the country’s capital.”

 

That takes care of who are swooping for new home-sweet-homes. But how about commercial properties?  The growth in the market includes commercial real estate. Watch this space as Swoop continues to look into this economic news to help you out on who will be demanding offices spaces for 2018.

 

Looking for a home or have a residence you want listed? Download Swoop on the App Store or Google Play. You can also send an inquiry on our Facebook page or website.

 

Philippine GDP Chart courtesy of Asian Development Bank

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