Landlords, occupiers, and investors remain resiliently optimistic considering the COVID-19 situation.
In a survey partaken by nearly 500 landlords, occupiers and investors in the Philippines, around 3 out of 5 respondents see that estate prices have had little to no changes or has continued to appreciate.
In the same survey, when asked about their year-end outlook for the Philippines considering the current COVID-19 situation, 55% of landlords, occupiers, and investors still see the 2020 year-end outlook of the Philippines as ‘fair’ to ‘very optimistic’. While 33% of these real estate stakeholders are at the lower end of the scale with ‘slightly pessimistic’ outlook, it’s worth noting that during the discussions with these landlords, occupiers and investors, most of them expressed that this outlook will still depend on what’s going to happen in the next few months. Reasonably, these landlords have had tenants asking for rental concessions, tenants have had a challenged cashflow generation and investor/developers have had their plans moved by almost 6 months in average. All had their own fair shares of the impact of the COVID-19 crisis which resulted to an estimated 30% to 40% average net income loss projection for 2020.
Repeated key themes were also identified during the survey proper such as “uncertainty”, “survival”, and “time”, indicating the seeming wariness in the face of further unforeseen events. While the caution is at a high, almost a third of the respondents still had a ‘fair’ business outlook for 2020. Based on further discussions with the survey participants, PRIME Philippines projects that business confidence is still expected to bounce back towards third to fourth quarter of the year as more economic stimuli are put in place and the health situation in the Philippines improves.
PRIME Philippines is the leading real estate consultancy firm in the country with offices in Manila, Cebu and Davao, with over USD 400 million in successful deals, over 3,000 clients served, and over 200 projects. Led by a millennial game-changer, Jet Yu, PRIME Philippines has continuously challenged the way real estate business is done in the Philippines. In line with the company’s purpose to challenge tradition and to create better real estate solutions, PRIME Philippines has opened its compendium of intelligence reports for subscription. The first volume will be ready for circulation to the subscribers of PRIME Philippines’ market intelligence compendium on April 17, 2020. To subscribe or request for further details, please email [email protected].