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This year's Philippine Real Estate Market is off to a terrific start.

RISING LAND VALUES IN MANILA'S KEY BUSINESS AREA Represented a property market recovery. Although our data show that land values have been adjusted by 1.7% to 9.8% in 2020, this is primarily to developers deferring the acquisition of new parcels of land owing to market disruptions.




RISING LAND VALUES IN MANILA'S KEY BUSINESS AREA Represented a property market recovery. Although our data show that land values have been adjusted by 1.7% to 9.8% in 2020, this is primarily to developers deferring the acquisition of new parcels of land owing to market disruptions.


Land prices are expected to rise 5.1% in 2022, reflecting an improving real estate market. Interest in developable land is increasing, which bodes well for the property market. Acquiring land parcels within and outside of Metro Manila will be essential in developers' pipelines of new projects beyond 2022, as they exploit post-pandemic market demand.


All property indices are currently correcting, but due to a lack of developable land in Metro Manila's key commercial areas, land prices remain reasonably constant and are likely to perk up this year, barring any significant coronavirus disease 2019 (COVID-19) outbreaks.


We encourage real estate developers to be flexible and assess the economy's ability to recover during the outbreak. If they wish to capitalize on pent-up demand, they must also improve their land-banking activities.


Furthermore, we believe that infrastructure project completion will be an important driver of economic progress beyond 2022. We mentioned in a previous report that the completion and upgrade of railways, toll roads, and airports throughout the Philippines should contribute to higher land and property values; thus, these projects will play an important role in dictating property firms' development strategies beyond the pandemic.





Credits

By Paul Vincent Ramirez MRICS

Paul Vincent Ramirez is Colliers Philippines’ senior director and head of valuation services.

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