The 90-day campaign period for senatorial and party-list candidates officially kicked off on February 11. Meanwhile, the 45-day campaign period for local candidates to woo voters will commence on March 28. Both national and local campaign periods will conclude on May 10, just two days before election day.
Despite the election jitters and perceived uncertainties caused by recent political events such as the impeachment of Vice President Sara Duterte, economic analysts remain optimistic about the country’s economic prospects.
The World Bank projects that the Philippine economy will grow by 6.1% in 2025. This follows an estimated 5.9% growth in 2024, according to the recently released 2025 Global Economic Prospects (GEP) report. “The Philippines is set to maintain its position as one of Southeast Asia’s top-performing economies, driven by strong household consumption, sustained strength in the services sector, and improved trade stemming from a rebound in global demand for goods and the continued recovery of services exports such as tourism,” it said.
For its part, Unicapital Securities Inc., a full-service investment house licensed by the Philippine Securities and Exchange Commission (PSE), has projected an impressive 6.3% gross domestic product (GDP) growth, driven by election-related spending, easing inflation, and robust domestic opportunities.
The midterm elections in May are anticipated to boost short-term economic activity, particularly in sectors like consumer goods, construction, and infrastructure, media, and telecommunications.
However, despite the positive economic forecast, a recent report by Colliers Philippines—a leading professional services and investment management company specializing in real estate—presents a more nuanced view of the Metro Manila real estate market.
According to the report, the capital’s overall residential vacancy rate has reached a staggering 23.9%, with an oversupply of condominium units that could take up to 8.2 years to absorb. This data paints a picture of a market grappling with an imbalance between supply and demand, challenging developers, and investors alike.
The savvy observer, however, will note that this is not an “oversupply,” but rather, a “mismatch.” Too many developers have over-concentrated on building higher-end products in Metro Manila, catering to a specific segment, but not aligning their supply with the broader population’s demand. The result is a mismatch within a segment of Philippine real estate (i.e. larger Metro Manila developments) that attracts a level of coverage that is disproportionately higher than its relative size and footprint, vis-a-vis the bigger picture of the country-wide real estate industry.
The same Colliers report confirmed that the demand for residential projects outside Metro Manila remains robust, driven by changing preferences for more open spaces, lower costs, and a better quality of life. So that’s where opportunities lie.
Since we established Italpinas Development Corporation (IDC) in 2009, our focus has always been on emerging locations outside Metro Manila. This strategic decision foresaw the potential oversupply in the capital, placing IDC ahead of the curve in future-fluent locations and market sensitivity. As a result, we have maintained strong sales and occupancy rates, largely by targeting underserved yet dynamic areas with high growth potential.
As a matter of fact, IDC continues its expansion, precisely in key locations in the “bigger picture” of country-wide growth, with several projects underway and more collaborations in the pipeline. Stay tuned as we intend to soon announce new partnerships with trusted hospitality and real estate brands, in areas that we believe are new focus points for growth in Philippine real estate.
To prepare for bigger things, we have recently reenergized our organization by appointing two new directors to our board— veteran banker Alfonso Salcedo and capital market expert Melchor Guerrero.
Mr. Salcedo brings with him a wealth of experience from his senior positions in the banking industry, having served as the president and CEO of Security Bank from 2015 to 2019. Prior to that, he held various roles at the Bank of the Philippine Islands (BPI), including executive vice president and president of different BPI subsidiaries. He completed his undergraduate degree at Ateneo de Manila University and the Harvard Advanced Management Program in 2006.
Mr. Guerrero, meanwhile, has a deep background in finance and capital markets. He has been involved as the lead underwriter or advisor for listings on major stock exchanges, including the Philippine Stock Exchange, Nasdaq, NYSE, and NSX Australia. His expertise in capital markets will be invaluable to our team.
On behalf of the entire IDC family, Atty. Jojo Leviste and I extend a warm welcome to Alfonso and Melchor as they join the Italpinas team. We are confident that their impressive track records and deep industry expertise will be invaluable assets as we continue to expand and solidify our market position. We look forward to their contributions to the company’s growth and success.
