The Philippines saw demand for office property despite the quarantine guidelines amid the COVID-19 pandemic. It was to held in defiance with the slow market seen elsewhere in the world.
211,000 square meters (sq m) of office space had been taken up in the first five months of the year. This is according to David Leechiu, chief executive officer Leechiu Property Consultants, happened in the face of the enhanced community quarantine (ECQ) and modified ECQ (MECQ) from to 31st of May.
This struck a rise of 34 percent from the 157,000 sq m of demand recorded prior to the ECQ. This also signified that the number of office property deals were ceased during the total quarantine months of April and May 54,000 sq m.
“We expected zero demand in the second quarter of 2020 but despite the ECQ/MECQ, we’ve seen transactions concluded. The Philippines is most likely the only office market in the world that sees growing demand today. We expect IT-BPM demand to surge once more by the end of the year when the Philippines, United States and other countries would have adapted to a new normal,” Leechiu said.
Of the office property demand expected in the country so far, 60 percent of the deals were considered for Metro Manila considered while 40 percent were accounted in the provinces. IT-BPM then rated for 37 percent of office demand in the first five months. This is accompanied by online gaming or Philippine offshore gaming operator (Pogo) players with a part of 13 percent. Traditional offices, corporate tenants and flexible workspace operators seized the outstanding 50 percent of office space.
Office demand should rise to some 800,000 sq m by the end of 2020, Leechiu calculated. This will be through the demand from the IT-BPM and Pogo sectors, merged with increasing investor and public confidence.
Amidst the global financial crisis of 2008, the Philippines was also the sole market in the world. When this happened, the office call did not decrease. This is indebted to the augmentation of the IT-BPM sector, Leechiu recollected. Office demand from the IT-BPM sector has been firm and blooming fairly all through the decade.
Source: Inquirer.Net