‘Beyond business’ gestures to give developers an edge

CEBU, Philippines —  Property developers who were quick enough to reach out to their clients at the onset of the crisis have gained greater advantage in establishing stronger relationship with the market.

This “beyond business” gesture of some developers, such as deferring payments, taking care of construction workers, and helping employees affected with the community quarantine during COVID-19 outbreak will be remembered. And these developers are likely to stand out after the global health crisis passes, said Colliers International Philippines head for research Joey Roi H. Bondoc.

What was supposedly a robust industry prior to the pandemic will soften a bit before it can regain its strength once the crisis is over. However, as to when it is going to rebound largely depends on how the market behaves after the Covid-19 problem.

Thus, developers are also advised to stop new condominium project launches, especially if prices will significantly drop.

Depending on the duration of the community quarantine, prices in the secondary market can also soften to their pre-selling rates for developments completing this year.

In the event that the COVID-19 situation worsens, “we project a slower take-up in selected business districts, especially in areas that depend on POGO demand.”

Factoring in a slower take-up from Chinese investors especially in business districts where demand is mainly POGO-driven, Colliers sees vacancy in the secondary market (condo units completed that are for rent or re-sale) increasing to nearly 20 percent from 11 percent end 2019.