The Philippines now has the longest lockdown imposed in the world, next to Wuhan, China, the epicenter of the COVID-19 pandemic. The country has been going back and forth with differing levels of community quarantine since March 2020 (ranging from the initial Community Quarantine (CQ) measures, to the stricter Enhanced Community Quarantine (ECQ), the Modified Enhanced Community Quarantine, to the more relaxed General Community Quarantine (GCQ)), and several sectors and industries have been grappling with the effects of the COVID-19 pandemic, especially with restrictions on mobility and business closures that were enforced to limit the spread of this virus. According to Ruben Carlo Asuncion, chief economist for Union Bank of the Philippines, in an interview with CNN Philippines, the coronavirus outbreak could cost our economy $600 million or 0.8% of economic growth if it lasts for six months.

With talks of easing up of restrictions following the recommendations of the Inter-Agency Task Force (IATF), and the announcement of President Rodrigo Duterte, the entire country is bracing for the new normal—at least until a vaccine against the viral infection is developed. Several adjustments need to be made if we are to ensure that public health and safety are maintained, what more with the inevitable opening of businesses and industries to soften economic impact. Physical distancing measures, consistent sanitation and disinfection, and minimal close exposure and contact, among others, have altered how we go about with our daily lives: from our work arrangements and lifestyle and leisure activities, to the way we interact with people, the way we travel, and the way we live.

The food and beverage and retail industries have adapted well by maximizing online and cashless transactions and third-party delivery services. After quarantine restrictions were relaxed in June 1, businesses and activities previously prohibited have been gradually opened up, including limited dine-in customers are restaurants, salons and barbershops, and a number of physical activities. Many businesses have put in place measures make sure that health precautions are observed and customers feel safe. These safeguards have also been implemented in other industries like the transport sector and many other businesses.

Temporary Accommodations and the Healthcare and BPO Sectors

At the beginning of the community quarantine in Luzon in mid-March, local lockdowns have been imposed and mobility has been strictly restricted in an attempt to curb the transmission of virus. Checkpoints have been installed in city and provincial borders, and even stricter lockdowns have been implemented in certain barangays observed to have spike in cases. Businesses, in compliance with the directive of the national government, were shut down, or at best, have been allowed limited operations following strict guidelines on social distancing. At the forefront of the pandemic, the healthcare sector has been one of the most affected by such measures. Getting the service of healthcare workers and first responders and other essential workers (restaurant and supermarket employees, security personnel, and others) means they have to either be mobile or in proximity to their work place. Alas, suspensions of public transportation and even tenant discrimination have been reported during the height of the lockdown. Mobility proved to be a roadblock since not all healthcare workers have private vehicles, or have arranged service vehicles to ferry them to and from work. Another challenge is if they live outside Metro Manila, as in the case of the metro’s thousands of workers, then checkpoints would have been stricter, as evidenced by reports of difficulties in moving from one locality to another. This does not yet include the discriminations that have been experienced by several healthcare workers in the hands of their community, for fear of being carriers of the virus. What is important to note was that it took some time, and a lot of public and private collaboration before measures were taken to address these critical incidents.

To address these concerns, certain groups from the private and non-government sectors including religious organizations, aid organizations, and private businesses, especially those in the hotel and hospitality business, lent a hand in making sure there are safe, accessible spaces for the frontliners.

In the Philippines, Airbnb partnered with several independent property owners and hotels to house healthcare workers; the Office of the Vice President arranged for dormitory-type lodgings; the Boy Scout of the Philippines International Hotel allowed use of its facilities for doctors and nurses in nearby hospitals. This initiative was also evident in other heavily-hit countries, as in the USA, where they offered over 3.4 million hotel rooms from 15,000 hotels for temporary housing for healthcare workers. It provided them with a safe place to recharge, sleep, and isolate as they battle the spread of the the disease. Local government units (LGUs) followed suit to ensure that their frontliners are equipped not just with the appropriate personal protective equipment (PPE), but with proper housing and transportation services as well.

Quarantine and isolation facilities were also identified and set up in several LGUs across the country to ensure that there are proper accommodations for COVID-19-positive patients and also healthcare workers, who account for about 13% of those positive for COVID-19 in the country, according to the World Health Organization (WHO). These facilities can help unburden hospitals by housing patients with mild to moderate symptoms, even those whose positive tests are yet to be confirmed.

The Bureau of Quarantine also released a list of accredited hotels and properties that are designated quarantine facilities for repatriated overseas Filipino workers. Many local government units also put up additional facilities in anticipation of more cases to avoid hospitals reaching their breaking points.

Aside from the healthcare industry, the Business Process Outsourcing (BPO) industry has also adapted to the new normal: many have arranged to have their employees in-house or in nearby accommodations so they can keep their operations running. Initially, alternative work options like work-from-home setups were explored, but concerns on data security and employee productivity were also anticipated. To address the above valid fears, staff housing became the alternative. IT and BPO companies looked into this arrangement as an option for their people to minimize the risk of outside infection—this allows their people to be less mobile, to be contained in a single point of origin, and to have minimal need for contact tracing since they have a definite group of people in a certain location. If employees are required to work on-site in contact with others, physical distances or performing alternate work assignments, staggering shifts, shifting schedules, and hiring transportation services were done as safety protocols for those who had to be exposed to the outside world. Essentially, this move is to ensure continuity of operations and minimize work disruptions, no matter the crisis.

The Housing Deficit and Staff Housing

The above-mentioned are not the only industries that will benefit from this shift to staff housing. This is seen as a reliable way to drive employee productivity and loyalty, as it is seen as an add-on or a benefit that so many younger workers are looking for in a company or employer. What staff housing does is it provides a secure and affordable accommodations for employees without compromising comfort, safety, and proximity, all of which can ultimately impact work productivity and retention.

Pinnacle Real Estate believes that staff housing and community developments should be included in companies’ business continuity plans, to ensure smooth and continuous operations no matter the disruptions—be it a pandemic, natural disasters like typhoons, earthquakes, and floods, or the like.

Affordability drives Metro Manila employees to look further afield for housing options. Many even are moving further to adjacent provinces (Rizal, Cavite, Bulacan, and Laguna) just to be able to afford quality housing for them and their families. The Philippines’ estimated housing backlog stands at over 3.9 million, concentrated on the socialized, economic, and low-cost segments. This deficit is expected to balloon to 6.5 million by 2030.

Although this is addressed by the Philippine government and the housing industry, catching up to this huge deficit is no easy feat, especially with the focus of key players on medium and high-end housing segments. There seems to be no shortage in the mid-range and high-end segments, but most of these dwellings are beyond the means of average-income employees. A 25-square-meter condo apartment within the central business districts have heftier price tags than single-detached houses in the Cavite and Laguna.

Hence, staff housing may even take a slightly different route, in terms of proximity and accessibility. Ideally, it should be close to one’s workplace, or at least close to public transport. Brands like MyTown, PointBlue, and iDorm initially had properties within central business districts like Bonifacio Global City and Makati, where most young professionals are looking for reasonably priced lodgings but with a condo-type setting. But they are also now venturing outward, but still within reach from key locations in the metro. On a staff housing perspective, companies can now ensure the health and safety of its employees, keeping them protected and sheltered, while allowing them to continue work, while giving them a good quality lifestyle.

Who Can Fill the Gap?

Understandbly, with the housing deficit still a major concern, who then can accommodate this shift in corporate and staff housing as part of the new normal? Key players and developers can jump in on the trend and invest in properties that can be converted into such facilities that can cater to corporate clients. But aside from the usual real estate investors, the hospitality and tourism sector (hotel chains, Airbnb, RedDoorz, OYO, ZenRooms, condormitel/condotels/dormitels, temporary quarantine facilities, etc.) can pave the way for such arrangements. While things may take a while to go back to normal in terms of booking, reservations, and travel, otherwise idle accommodations can be made use for corporate or staff housing. Companies can continue optimal work operations with people onsite and available to service their clientele, while the remainder of their workforce are still on alternative work arrangements. It may take major adjustments in their current setups, but still a doable and achievable task, as they have been able to cater to the government’s strict guidelines as quarantine facilities. Adapting to the new normal will allow these businesses to continue and even thrive post-pandemic.

The real estate industry as a whole is being flexible while transitioning to the new normal. Demand may be slower to nil, but such is expected in a crisis on such massive scale. It has been likened to the 1997 Asian financial crisis, but the fact of the matter is that these are different times, with different conditions revolving around these incidents. Some sectors are impacted more than others, but real estate’s stability is undeniable. We have also technologies in place that can help us weather out and survive in this climate—as transactions can now be done online. We have a stronger economy and steadier international relations that can help us bounce back after the entire thing blows over. In a published interview, Noel Cariño, national president of the Chamber of Real Estate and Builders’ Associations Inc. (CREBA), anticipated that slowdown in deals may already pick up as early as the first quarter of 2021. The key is how resilient and flexible real estate players are to attract buyers and investors. Once lockdowns have completely eased, and people and industries have adjusted to the next normal—be it in terms of staff housing or any other new arrangements; adjustments to the way we work, communicate, interact, and live—then there is good reason to believe that we will come out of this stronger and with a new sense of hope for the future.