MANILA – Tight supply for residential and office space shows that demand in the property market remains strong, one of the country’s largest developers said Monday.

Industry sales grew 25 percent to 40,000 units in 2016, after it tapered from a peak of 50,000 units in 2012, Dy told ANC’s “Market Edge with Cathy Yang.”

With interest rates low and the economy growing at 6 to 7 percent, Dy said “demand will still be fairly robust.”

“The inventory has tightened quite a bit,” he said.

Developers ended 2016 with 18 months of inventory from 27 months at the start of the year. Ayala Land ended last year with 10 months from 18 months.

“There’s really room for us to introduce more products,” he said.

While there is “tentativeness” on the part of business process outsourcing companies, Dy said the Philippines’ remains an attractive spot for outsourcing due to cheaper costs.