The second half of 2019 saw an increase in the demand for Philippine commercial real estate. JLL Philippines reported that the country is expecting more of this upbeat as the 2020s arrive.
POGO’s and O&O’s Blessings
Ever since the arrival of the Philippine Online Gaming Organization (POGO) in the country, the demands for office spaces continue to soar high as different Chinese workers are migrating in the Philippines to work for these firms around Metro Manila. JLL reported that the vacancy rates of office spaces in Metro Manila kept on decreasing thanks to these firms.
A similar thing is happening to Metro Cebu and Davao City as JLL analyzed that both cities are currently having an office space glut to accommodate all Offshoring & Outsourcing (O&O) firms.
It was indeed bulk real estate activity for the Philippines.
Commercial Exodus
The opposite is happening for the prime offices in Hong Kong, as the office market began to decline and vacancy rates begin to rise by 2.8% every month. The poor performance can be attributed to the civil unrest and protests currently plaguing Hong Kong.
South China Morning Post’s Nicholas Spiro calls this as an exodus for Hong Kong office workers as the employees begin to emigrate to other countries. It was also reported that some of these workers from these firms are most likely to immediately find job opportunities in countries with affordable properties such as Portugal, Malaysia, and the Philippines.
This incident explains why the Philippines is having a bulk activity in commercial real estate. Firms such as DMW Associates and JLL are experiencing much of this climb for the upcoming years.
Stay updated to the commercial real estate market by visiting https://housinginteractive.com.ph/ !
