According to a pair of leading Philippine property consultancies, a property market boom in 2022 is likely. Experts from both Cushman and Wakefield and Colliers Philippines believe the situation is getting better which will fuel demand and spark increased real estate activity this year.
Claro Cordero Jr., Director and Head of Research, Consulting and Advisory Services Cushman and Wakefield explained to the BusinessMirror that a property market boom in 2022 will be supported by the country’s improving vaccination rate with this helping the economic reopening.
He added that the residential segment will lead the boom as stable household purchasing power, a labor market recovery, the continuous flow of overseas Filipino worker (OFW) remittances and the availability of credit to consumers should stimulate more interest and sales.
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These sentiments were echoed by Colliers Philippines Associate Director Joey Bondoc who also believes increasing OFW remittances will create more residential property demand this year. He cited rising residential real estate prices along with the better-than-expected performance of the economy at the end of 2021 as other reasons for optimism.
Philippine property prices rose in the third quarter of 2021 with the Bangko Sentral ng Pilipinas (BSP) Residential Real Estate Price Index increasing by 6.3 percent with growing demand for condos and townhomes played an important role in this turnaround.
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“The BSP anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022,” BSP Governor Benjamin Diokno was quoted as saying by Philstar Global. “Real estate demand slipped due to the uncertainties brought about by the global health crisis as capital values for office and residential units in the country’s major commercial and business districts slumped in 2020.”
