Property Forecasts for 2018, Colliers etc

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Property Forecasts for 2018, Colliers etc

(Notes from article in today's Ph. Daily Inquirer)

2018 Property Forecast

Anticipating "another stellar year in 2018", says Colliers

1/ Infrastructure-led GDP to buoy Property

2/ Metro Manila Condo leasing to remain challenging

3/ Office tenancies to be lead by non-BPO's

4/ Flexible workspace growth to accelerate

5/ Growing popularity of E-Commerce to drive warehousing, logistics demand

6/ Industrial park developers head North of Luzon

7/ More townships outside Metro Manila

8/ More resort-oriented hotels across the country

9/ Continued growth of E-commerce & experiential retail

10/ Leisure, Industrial to drive Cebu property expansion

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> more: http://www.colliers.com/en-gb/philippines/about/media/top_10_predictions_for_2018

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HIGHLIGHTS:

2/ Metro Manila Condo leasing to remain challenging

Keeping & attracting leasing tenants remains challenging, thanks to rising supply.  Demand in (some) second tier & third tier cities may be more stable.

3/ Office tenancies to be lead by non-BPO's

BPO demand has slowed.  But the slack has been picked up by operators of offshore gaming licenses (POGO's.) Traditional companies may step up their demand in 2018.

4/ Flexible workspace growth to accelerate

Size is now over 2.15 million sqm of flexible office space available, and offered to start-ups, law firms, fortune 500 co's & frelancers.

Occupiers requirements are changing, and the tenants want more mobility, more flexibility. International brands are entering the market

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LOCATION related

6/ Industrial park developers head North of Luzon

Major property developers are headed North, like Double Dragon, who acquired a 6.2 hectare lot in Luisita Industrial park in Tarlac.

Xu Liand Dragon group has committed to develop a 3.000 ha mixed use SEZ /industrial zone in Pangasinan.  Ayala is developing 31 ha industrial park in Alviera estate in Porac, and Filinvest has a 100-hectare industrial estate in Clark Green City

7/ More townships outside Metro Manila

Colliers expects developers to continue building satellite communities in and around Manila using the Walkability concept: Live/Work/Play & Shopping/Lifestyle. Mixed use likely to be more popular than standalone.

Focus may be on areas outside Metro-manila, like: Cavite, Laguna, Bulacan, Pampanga, Cebu & Davao.

Land values will be unlocked by aggressive expansion of road networks.