Leading commercial real estate services firm CBRE Philippines is confident the Philippine property sector will continue to remain buoyant in 2014, as it says more foreign investors are finally recognizing the country as a top investment spot in Asia Pacific.
CBRE Philippines chairman Rick Santos said the property sector will continue to accelerate, driven by the demand for office space from the business process outsourcing industry.
“No longer is the Philippines an underestimated market, investors now see the sweet spot that it is in all property fronts – office, residential, industrial, retail and leisure… We think 2014 will be the best market we’ve seen in 20 years in the Philippines, especially in the BPO outsourcing side,” he said in a press briefing on Thursday.
Santos cited the Urban Land Institute’s 2014 survey which showed the Philippines ranked 4th in investment prospects in Asia Pacific, behind Tokyo, Shanghai and Jakarta.
With its strong economy and young demographic, the Philippines was considered the best bet market for office, residential and retail sectors.
Santos noted luxury residential properties will also see more foreigner buyers, as China, Hong Kong, Singapore and Malaysia implement cooling measures. “For the price of 1 condo in Hong Kong, you could buy 12 here,” he said.
The resurgence of the manufacturing and logistics industries will perk up the industrial property sector. Santos said many Japanese and Korean firms are now considering setting up shop here, as they grapple with issues with China and North Korea respectively.
“For Japan, it’s no secret that they haven’t been happy with their operations in China, with the territorial dispute over some Japanese islands… We see more Japanese groups coming here out of China. Also, some tensions between North and South Korea, we see more South Korean companies coming here. Also Japanese firms in Thailand, have been hit by 2 things – floods and the current political instability,” he said.