Asian buyers leading growth – CBRE
Interest from foreign investors in va-rious industries, mainly from other Asian countries, is boosting the growth outlook for the Philippines’ property sector, according to local real estate advisor CBRE Philippines.
“The outlook for the real estate sector remains bullish with foreign investors highly interested in entering the Philippine market,” CBRE Philippines said in a report.
CBRE said global firms are eyeing the Philippines as its “next big trade partner,” which is helping to drive investment interest in local property.
“Of late, business meeting initiatives have come from Japan, China, South Korea, Singapore, and the United States,” CBRE said.
The report also noted the strong interest to do business in the Philippines coming from Taiwanese investors.
“This surge of investors mainly comes from sectors like construction, retail, information technology, and semiconductors,” the report said.
CBRE said the interest from Taiwanese firms is driven by their plans to expand and reach out to neighboring countries as part of the Taiwanese government’s new Southbound Policy.
Aside from interest in the construction sector, CBRE noted that interest from foreign companies continued to drive demand in the outsourcing sector in the second quarter of the year.
“The business process outsourcing (BPO) industry remained robust as foreign companies still considered the Philippines a favorable destination due to the availability of a large pool of qualified labor and a cost efficient environment in which to operate,” CBRE said.
Apart from office space, the demand for BPO services from foreign companies is also supporting the growth of the hospitality industry.
“The hospitality sector is also booming with the entry of multinational companies in the metro,” CBRE said.
Foreign interest is also seen from Japan, highlighted by the soon to be opened Okada Manila, the largest casino resort in the country, encompassing over 26,410.77 square meters.
“More tourism developments are still in the pipeline as tourist arrivals are continuously increasing and infrastructure developments still ongoing,” CBRE said.
Furthermore, CBRE noted the potential growth of the retail sector, with the entrance of foreign brands into the Philippine market.
“Retail growth is seen to expand further as more foreign brands enter the market and as demand continues to increase in the market,” the report said.