The spread of the Omicron variant of COVID-19 hindered the Metro Manila residential property market recovery during the fourth quarter of 2021. According to Colliers Philippines, demand for pre-selling condo units was limited while residential leasing remains stagnant.
There had been hope that a turnaround would begin in earnest during the final quarter of last year as the country was on the verge of reopening. However, the rapid spread of the Omicron variant shelved those plans and kept the Metro Manila residential property market quiet to end 2021.
Despite this, optimism remains looking ahead. Starting February 10, visitors from 150 countries are permitted to enter visa free and without needing to quarantine upon arrival. This, along with the better-than-expected performance of the economy, should support a Metro Manila residential property market recovery in the coming months.
“The Philippine economy is bound for rebound in 2022. We see the economic expansion supporting demand in the residential sector, whether in the pre-selling or secondary markets. While we saw initial headwinds at the start of the year, especially the spread of the Omicron variant, the gradual return of foreign professionals and turnaround in business and consumer confidence should help fuel the take-up of more residential units,” Colliers Philippines Associate Director Joey Bondoc explained during a recent press briefing. “We also see rents and prices recovering in the next 12 months. These indicators bode well for the residential market.”
That being said, developers in the Philippines have been encouraged to take a measured approach this year. This includes being prepared for expected increases in demand while gearing up for a reopening.
“(Developers should) continue lining up projects, both condominium and house & lots, in line with the anticipated recovery of the economy and as more professionals return to traditional offices located in central business districts,” Bondoc noted. “We believe that the gradual easing of restrictions should allow more developers to reopen their physical showrooms to interested investors. In our opinion, physical showrooms play a significant role in capturing potential buyers’ attention by letting them physically inspect the appearance of their completed unit.”
