It’s been a year now since the pandemic was declared and lockdowns started. While a significant improvement in the situation is yet to be seen in the country, the arrival of COVID-19 vaccines will bring hope for the property market.
“With the arrival of vaccines, the impact on the Philippine property market may be magnified once the inoculation program reaches most of the population,” Cushman and Wakefield Philippines director for research, consulting and advisory services Claro Cordero Jr. said.
“Investor confidence is expected to slightly improve in the immediate-term with news of vaccines reaching the country, but the roll-out of the effective vaccination program and reaching herd immunity in the soonest possible time will provide a paradigm shift in the way investors will look at the Philippine property market,” he added.
Supplies
Vaccines started to arrive in the country in the past weeks, after delays in the delivery.
The country has already received 1.1 million of vaccine doses: 600,000 Sinovac doses from China and 525,600 AstraZeneca shots through the World Health Organization (WHO)-led COVAX facility.
“While the arrival of vaccines sparks optimism in the market, the intended impact will be apparent once vaccines reach the key segments—such as the working population who will fuel the demand for the various property sub-sectors,” Cordero said.
“The scenario where offices, factories, malls and hotels can freely open is the most ideal one to ensure consistent growth of the key market fundamentals,” he added.
Economic stimulus
Macroeconomic policies to further stimulate the economy through balance of pump priming measures and long-term infrastructure investments will also be key considerations for global and local investors to put their bets on the Philippine property market, experts said.
Lobien Realty Group CEO Sheila Lobien however, said the arrival of vaccines may not have a direct impact yet on property investor sentiment.
“Everyone is still cautious and careful. We can’t really say that there is a direct effect right away in the property market,” Lobien said.
“Right now, cases are still going up, adding to the fear of many to really go out and spend,” she added.
The number of new daily COVID-19 infections has been rising in recent weeks.
On Monday, the Department of Health (DOH) reported 5,404 new COVID-19 cases. This brought the number of active cases to 53,479. Government data also shows that 560,577 COVID-19 patients have recovered, while 12,837 have died.
OCTA Research said the country may reach 8,000 daily new cases by the end of the month if the upward trend continues.
Leechiu Property Consultants associate director Mikko Barranda likewise expressed optimism for the expected arrival of vaccines, particularly for the office market.
In an earlier report, Colliers Philippines urged developers to construct more cold storage facilities as demand in areas such as Metro Manila, Pampanga, and the Cavite-Laguna-Batangas (CALABA) corridor remains underserved.
“We expect demand to be driven by the growth of deliveries of perishable food items and groceries,” Colliers said.
“This will likely be complemented by the government’s anti-COVID-19 vaccination program as some vaccines require cold chain facilities to ensure product quality,” it added.