Strong domestic consumer spending has been one of the driving forces of this growth. This is more than likely to be sustained based on the recent Bangko Sentral ng Pilipinas (BSP) releases on consumer and business expectation wherein a positive for outlook for 2012 remains to be the general sentiment. Together with the emergence of new areas of development, a need for new and improved commercial facilities has been created.
Developers have also taken the approach of making these establishments more accessible by bringing them closer to the consuming public. Appropriate formats (i.e. hypermarkets, supermarkets, convenience stores) are put up depending on the perceived market size, dynamics and space availability within the area. In some areas, developers saturate the market by putting up multiple branches barely a few kilometers away from each other. This bodes well for consumers as it increases their convenience in shopping.
Different malls and shopping centers are in various stages of construction and upgrade. Developers are constantly keeping in stride with the changing trends in the economy, fashion, technology and overall consumer preference. This is the best way for them to ensure their position and sustainability in the market.
The office market is likewise displaying a strong performance. Overall vacancy across the high grade buildings within Metro Manila was estimated to be around 5%. Office rents tend to favor the landlord which gives a strong indication of support for the reported low vacancy.
BPO companies continue to expand their operations in the country with the continued outsourcing of jobs from the economically hit western countries. Anecdotal information also shows that some local businesses are expanding and in need of additional space. Buildings up for completion in the different business districts are seen to ease the pressure from this demand. The continued positive outlook from the business sector would indicate that the strong performance of the office market will be sustained for the year.
Other segments on the rise are in the hospitality and gaming sector. Construction of hotel casino facilities is currently underway at the PAGCOR Entertainment City. Hotel facilities cutting across different segments (i.e. luxury, business and budget hotels) are also under construction in the different districts such as Makati, Manila, Quezon City, Ortigas and Bonifacio Global City. This also holds true for some of the major tourist destinations in the country. This is in preparation for the foreseen increase in tourism activity in the country coming from both foreign and domestic sources.
Barring any unforeseen adversities, the commercial property market is expected to continue on this path of growth. All indications market, economic and social, points towards this general direction. Likewise, the concerted efforts shown by both the public and private sectors will make this realization a strong possibility.
