Colliers suggests lucrative opportunities to transform Philippine real estate assets
The property consultancy firm believes that this is crucial for the sector’s survival amid pandemic
As the pandemic takes a toll on the Philippine economy, property consultancy firm Colliers International Philippines recommends property owners and landlords to consider repurposing their assets based on consumers’ evolving behaviour, reported Business World.
Though asset adjustments would depend on the real estate category, they believe that the evolving needs and financial capabilities of consumers should still be recognised.
This is particularly crucial for businesses that plan to establish a hub-and-spoke model, which means “occupiers reduce the reliance of a single headquarters location for a more dispersed occupancy strategy,” they explained in the report.
For developers that lease mall spaces, the firm suggests transforming vacant spaces into co-working venues or additional space for warehouses, particularly since movement restrictions have been keeping the foot traffic in malls low.
More: The Philippines finds REIT timing for property investment
Hotel operators, which is expected to receive only 30 percent occupancy in 2020, can also turn their leasing spaces into co-working spaces, as well as co-living facilities. Meanwhile, residential developers are advised to offer more appealing payment terms to continue luring investors and tenants.
As for warehousing companies, Colliers proposes digitising its operations to cater to the growing needs of the e-commerce industry.
“The Philippine economy continues to reel from the impact of the pandemic and lockdowns, officially entering into a recession. Colliers believes that conversion and repurposing of assets are crucial amid the pandemic and global economic downturn,” the report concluded.
Recommended
How joining BRICS could give Thailand and Malaysia a new economic edge
Thailand and Malaysia are eyeing membership in the bloc of emerging nations
How Modi’s real estate reforms are transforming India’s housing market – and what’s next
A coalition led by the strongman prime minister Narendra Modi is looking to consolidate gains in the property market
Why Japan’s new interest rates might spark a transformation in Niseko’s property market
A new era for Niseko’s wintry property market dawns with the sunset of Japan’s negative rates regime
China’s property market shows signs of life as new government stimulus kicks in
The country’s property slump has been gruelling, but stimulus measures appear to be breathing life into the market