MANILA -- A real estate service provider sees a rosier property market in Metro Manila by 2018, saying outlook on office, retail, residential, and industrial sectors remains high as these continue to expand.
Santos Knight Frank Chairman and Chief Executive Officer Rick Santos said outlook on Metro Manila's real estate market is more optimistic next year as the government's infrastructure projects are expected to be rolled out, improving the business environment here.
He added that higher business confidence is seen as post-ASEAN hosting effect, since the government was able to project the opportunities in investing in the country.
Likewise, infrastructure funding deals and other key agreements forged by the government and officials from other countries who attended the ASEAN Summit are also expected to drive economic opportunities in the Philippines.
This will lead to stronger demand in property market, according to Santos.
"With deeper cooperation between the Philippines and East Asian neighbors such as China and Japan, prospects for the Philippines' property sector are stronger than ever before. Enhanced infrastructure projects and access naturally attract more institutional and private investments that, in turn, lead to accelerated countryside development and growth of secondary cities," he said.
"We anticipate the office, residential retail, and industrial sectors to grow further in terms of supply and activity, thanks to stronger regional trade and infrastructure cooperation," he added.
For this year alone, office space take-up is expected to reach over 600,000 square meters, led by the demand in the information technology and business process outsourcing (ITBPO) sector.
For residential sector, around 52,000 residential units are scheduled for turnover in 2018.
More than 182,300 square meters of retail space are slated for turnover by the end of the year.
Santos noted that e-commerce is not seen to drag the demand in retail spaces in the Philippines, unlike in the United States where market for retail space faces challenges in the age of e-commerce.
Likewise, forecast on industrial sector remains rosy as business confidence in the country is still high.
The company noted that there is an increasing demand for warehouse and storage spaces, particularly in Metro Manila, Clabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), and Central Visayas. (PNA)