THE political turmoil accompanying the arrest of former President Rodrigo R. Duterte is not expected to affect the real state industry, which is more concerned that legislators are not distracted from passing key legislation, according to property consultancy Colliers Philippines.
“I think developers here are wise enough to tune out all the political noise right now, and just focus on what needs to be done to make the Philippines a very good investment destination,” Colliers Philippines Director and Research Head Joey Roi Bondoc said during a briefing in Parañaque City on Tuesday.
He was responding to a question about client concerns about potential disruptions to the industry.
“If you’re a developer that is land banking, this political noise is a non-issue,” he added, noting that legislation like the National Land Use Bill or the Right of Way Acquisition Act Amendment are what the industry is focusing on.
Last week, Mr. Duterte was served a warrant issued by the International Criminal Court over alleged crimes against humanity that accompanied his anti-drug crackdown.
Mr. Duterte was flown on a chartered jet bound for The Hague hours later after his arrest at the airport after his return from Hong Kong.
“What’s important is that our politicians do their job and implement and enact all these pro-business measures that will eventually lead to a faster growing economy and a thriving property sector,” Mr. Bondoc said.
Mr. Bondoc said Colliers Philippines has seen a shift in focus among property developers to outside of Metro Manila amid a slowdown in take-up.
He added that Metro Manila’s office vacancies are expected to increase to 22% this year from 19.8% at the end of 2024 after the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy law (CREATE MORE) allowed registered locators to adopt 50% work-from-home arrangements, up from 30% previously.
“We’re not seeing a substantial reduction in office space vacancy. Developers and brokers need to look for other demand drivers,” he said.
Mr. Bondoc said one development that could gain momentum is more attractive payment terms such as extended downpayment options and higher cash discounts.
“The ready for occupancy (RFO) promos are getting sweeter. We’re now seeing all these very attractive payment terms, and this will likely be the norm moving forward,” he said.
“Now is a good time to invest, but you also have to be wise enough to look for the sweetest and most attractive promo for RFO units,” he added.
Meanwhile, Mr. Bondoc said election years typically have a positive impact on property sales.
“What’s interesting is that 12 months after the conclusion of every election, condo sales usually pick up,” he said.
Midterm elections are scheduled for May 12. — Revin Mikhael D. Ochave