Landlords, occupiers, and investors remain optimistic with their business recovery from COVID-19 impact.
In a survey conducted for landlords, occupiers, and investors alike, about 3 out of every 5 respondents possess the outlook that the property prices of the Philippine real estate sector will either remain the same, or even continue to appreciate. In addition to this, when asked how long it would take for the industry to recover, an average of 48% of the total respondents, a mix of landlords, occupiers, and investors, expressed that the recovery period would take an average of 6 months.
In the same graph, an average of 27% are remarkably optimistic that the real estate sector could recover from the pandemic in 1 to 3 months. This comes from the idea that some sectors, particularly offices, do not heavily rely on tourism for its continued operations. Once the pandemic gets under control, this could lead to significant improvements in business recovery. The other 25% at the other end of the scale, however, believes otherwise and think the country’s real estate scene could recover from 8 months to more than a year.
Whereas the office sector remains a little more resilient compared to other sectors, industries that heavily rely on consumers and tourists such as retail and hospitality sectors are essentially at a disadvantage as a result of the lockdown imposed on all forms of inbound and outbound travel, as well as the Enhanced Community Quarantine (ECQ) being enforced locally.
Regardless of reason, it is understood that nearly 500 individuals who answered the survey agree on one thing: they remain resiliently optimistic that the real estate sector will not sustain long term damage in spite of the COVID-19 pandemic. This particular survey found that most landlords anticipate a loss below 30% by the end of 2020 should the situation improve significantly. On the contrary, occupiers are seeing a loss between 30% to 50% by the end of the year. Despite the losses projected by both landlords and occupiers, it is expected that business confidence in the industry will bolster by year-end.