ULI Philippines: Emerging Trends in Real Estate® Asia Pacific 2021

Webinar Summary: While the success of Asia Pacific governments in containing the spread of COVID-19 has helped limit its impact on local real estate markets, there are growing concerns that a correction may be on the cards next year, according to the 2021 Emerging Trends in Real Estate® Asia Pacific report. The 15th edition of the regional real estate forecast report is jointly published by the Urban Land Institute (ULI) – the world’s oldest and largest network of cross-disciplinary real estate and land use experts – and PwC.

In the Philippines, real estate investment prospects are expected to weaken slightly in 2021. Even though the country was ranked consistently in the region’s top 10 a few years go, it has been hurt by Southeast Asia’s reputation as a high-risk play in times of global recession. However, development prospects remain fair this year, driven by the Philippines’ move to establish new satellite cities, such as Clark, as a way to relieve the demographic stress facing its big cities. Meanwhile, Manila’s office market remains lucrative, with the highest prime office yield spreads to risk-free rate in Asia ahead of Kuala Lumpur, Seoul, and Beijing.

In the launch organized by the Urban Land Institute Philippines and Santos Knight Frank, speakers from real estate, design, and tech industries discussed emerging trends in the future of land use in Asia Pacific. Due to the COVID-19 pandemic, there is less demand for retail and office space. Real estate developers are advised to pivot to emerging trends like data centers, cell sites, warehouses, and cold storage facilities.