With more challenges in Metro Manila’s real estate markets, consultancy firm Lobien Realty Group (LRG) said property owners and landlords can adapt, adjust and, even, evolve to stay afloat.
In the office property, LRG has observed more companies and investors are gradually going back to the market again to scout for potential expansion sites or investment opportunities since the start of the year.
Although many of the inquiries which LRG has received are still in the initial stages of sourcing and planning, it expects these clients will be ready to commit to potential sites and investment options within the second quarter of the year.
LRG said government’s call for more employers to adopt a work- from -home arrangement will definitely affect office takeup in the long run.
The company doubts the sustainability of such arrangement due to poor internet access and connectivity and poor workplace environments.
LRG said landlords/building owners need to be more flexible in their commercial terms when accepting new tenants. Some are already more open in signing short term leases compared to the usual three-to-five-year leases that landlords require according to LRG.
With the current situation, LRG said landlords/building owners could lower rental rates so they can lease their spaces quickly rather than let units remain unoccupied for many months.
In the residential property market, more home buyers have given importance to settling in less congested areas with more open spaces and greener surroundings.
It cited the latest Residential Real Estate Price Index (RREPI) of the Bangko Sentral ng Pilipinas which showed a 0.8-percent year- on -year growth in house prices for 2020. The BSP has attributed this largely to the increase in prices of all types of housing units in areas outside the National Capital Region (AONCR) which grew by 5.9 percent year-on-year.
LRG projects demand for residential properties in nearby provinces will continue to grow especially in areas where township projects are being developed and road infrastructure projects are being completed.
The property consultancy said the condominium sector has been the most affected since the pandemic with prices decreasing by 8.4 percent in the last quarter of 2020.
LRG has noticed that condo dwellers are transferring to single-detached houses as they prioritize their need for more open and greener space.
LRG projects preference for less congested living areas may continue until herd immunity against the COVID-19 virus is achieved through vaccination.
LRG said landlords of this type of property should consider offering lower rents especially if their units have been vacant for extended periods.
Aside from offering discounted rents, landlords should also highlight features of their building’s property management and how it is mitigating potential causes of COVID-19 infections in the property (e.g., strict monitoring of tenants and their guests, contact tracing measures and the extensiveness of its sanitation procedures).
Condo landlords may also consider throwing in leasing incentives such as offering complimentary unit disinfection services and the like to attract tenants.
