Philippines office market still among top preferences in Asia Pacific

MANILA, Philippines - The Philippine office market continues to remain attractive in the Asia Pacific region amid global headwinds, according to a real estate services firm.

In a briefing Tuesday, Jones Lang Lasalle chief executive officer for Asia Pacific Anthony Couse described the Asia Pacific region as the “heart of global growth” as domestic growth continues to strengthen the region’s economies.

“A lot of the growth in the region has been driven by domestic consumption. Again in the Philippines, young population is driving the economy,” Couse said

Couse said the Philippines is one of the contributors to the region’s growth.

He added that the Philippines remains to be an attractive destination to foreign investors as it is forecast to have the best total returns after Australia by 2018.

“As a real estate investor, you need to look for more assets,” Couse said.

Couse said investors are seeking to invest in other types of real estate markets where there is less capital change in their products. Among these sectors include education, hospitals and airports.

“Like any other investor, you wouldn’t put all of your investments in one asset class,” Couse said.

The diversification of foreign investors is also good for the Philippines as it creates more sources of growth, he noted.

“Obviously as a country you cannot rely on one sector, we maintain the BPO industry will continue to grow but we need to diversify where that sort of demand is coming from,” Couse said.

JLL Philippines head of research and valuation services Claro Cordero said developers are already diversifying into other assets.

“So they are doing institutional development, hospital and other education facilities as well. This is similar to the trend in the global market,” Cordero said.