(Bloomberg) -- The Philippine capital region's condominium market is set to cool for the first time in a decade, according to Colliers International Group Inc.
Residential condominium prices this year will drop by 15% from a year ago before slightly recovering in 2021, said Joey Bondoc, a senior research manager at Colliers in Manila. “The Philippine economy and property market are facing a tremendous challenge,” he said in a briefing on Wednesday.
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The property services firm's estimates assumed an economic contraction this year and the containment of the coronavirus next quarter. Condominium prices last fell during the global financial crisis, when it declined by 1.5% in 2009, Colliers data showed.
Other Highlights
- Colliers sees residential property rents declining by 5.5% in 2020 while vacancy rate will rise 15% this year from 11% in 2019.
- It expects about 11,000 condominium units to be completed this year, down from a 14,000 estimate previously.
- Remittances, low-interest rates and expansion of the outsourcing sector fueled an unprecedented property boom in the Philippine capital in the past decade.
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