MANILA - The Philippine property market is showing "green shoots of recovery" in line with the Bangko Sentral ng Pilipinas’ outlook for 2022, according to professional services and investment management firm Colliers.
The company said Wednesday that property demand is likely to start recovering next year especially for office, residential, and retail segments.
"In our view, the property sector’s rebound is likely to be fueled by improving vaccination, growing OFW remittances, competitive mortgage rates, and an economy that is expected to expand between 7 and 9 percent in 2022 after contracting by 9.6 percent in 2020," Colliers said
The company said this aligned with BSP Governor Benjamin Diokno's earlier statement that the real estate and construction sub-sectors have started to recover in the second quarter. The BSP chief also said the real estate market will recover in line with rebound in overall economic growth in 2022 as restrictions are eased.
Colliers said office leasing recovery will hinge on ramped-up COVID-19 vaccination, which should enable more employees to report back to their workplaces.
Stable overseas Filipino remittances and competitive mortgage rates meanwhile are seen helping boost residential demand.
"Revenge shopping" and dining meanwhile are expected to spur consumer traffic and a rebound in retail.
"We expect mall rents to recover slowly starting 2022 on the back of an improved vaccination program and a government-projected economic recovery, which should spur spending," Colliers said.