Pinnacle reports that despite the upcoming elections, the local real estate industry continues to be resilient.
With the beginning of the rainy season in the Philippines this year also came the start of election season and this, according to industry expert Pinnacle Real Estate Consulting Services, Inc., can greatly affect the country’s economic standing and eventually the property market. However, Pinnacle sees that major developers such as Ayala Land, SMDC, and Megaworld remain unfazed by election season as they continue to produce major projects, particularly townships or micro cities.
The office market remains largely driven by the business process outsourcing (BPO) industry as it is seen to generate 1.23 million jobs and $ 21.8 billion in revenues this year. On the residential side, the Housing and Land Use Regulatory Board (HLURB) have observed that average annual production reached over 200,000 lots or units, the two top categories being condominiums and economic housing.
The SM, Robinsons, and Puregold Groups continue to take charge of the retail segment. The hotel and gaming market is currently being dominated by SM Group and Lawrence Ho's City of Dreams Manila and Bloomberry Resorts Corp.'s Solaire Resort and Casino, while other developers are prepping to build their own hotel and casino resorts in the coming years.
The Philippine Economic Zone Authority (PEZA) recently reported an increase in international investments in the manufacturing industry over the past few decades. As a result, there is a current limited supply of leasable industrial land in Clark Special Economic Zone and Subic Bay Freeport Zone, as well as in Cebu.
To see Pinnacle’s full June 2015 report, click here.