COVID-19

Landlords, occupiers, and investors remain optimistic with their business recovery from COVID-19 impact

PRIME Philippines Research & Advisory Group • April 10, 2020

Landlords, occupiers, and investors remain optimistic with their business recovery from COVID-19 impact.

In a survey conducted for landlords, occupiers, and investors alike, about 3 out of every 5 respondents possess the outlook that the property prices of the Philippine real estate sector will either remain the same, or even continue to appreciate. In addition to this, when asked how long it would take for the industry to recover, an average of 48% of the total respondents, a mix of landlords, occupiers, and investors, expressed that the recovery period would take an average of 6 months.

 

In the same graph, an average of 27% are remarkably optimistic that the real estate sector could recover from the pandemic in 1 to 3 months. This comes from the idea that some sectors, particularly offices, do not heavily rely on tourism for its continued operations. Once the pandemic gets under control, this could lead to significant improvements in business recovery. The other 25% at the other end of the scale, however, believes otherwise and think the country’s real estate scene could recover from 8 months to more than a year.

 

Whereas the office sector remains a little more resilient compared to other sectors, industries that heavily rely on consumers and tourists such as retail and hospitality sectors are essentially at a disadvantage as a result of the lockdown imposed on all forms of inbound and outbound travel, as well as the Enhanced Community Quarantine (ECQ) being enforced locally.

 

Regardless of reason, it is understood that nearly 500 individuals who answered the survey agree on one thing: they remain resiliently optimistic that the real estate sector will not sustain long term damage in spite of the COVID-19 pandemic. This particular survey found that most landlords anticipate a loss below 30% by the end of 2020 should the situation improve significantly. On the contrary, occupiers are seeing a loss between 30% to 50% by the end of the year. Despite the losses projected by both landlords and occupiers, it is expected that business confidence in the industry will bolster by year-end.

 

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].

Tags:
PRIME Philippines, real estate, COVID-19 impact to real estate sector, business recovery projections, COVID-19
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