Construction projects down in July

Construction projects in the country registered declines both in terms of number and value in July from a year ago, according to the Philippine Statistics Authority.

Preliminary data released by the PSA showed that there were 14,343 construction projects from approved building permits in July this year, 2.4 percent lower than the 14,689 recorded in the same month last year.

The value of construction projects also dropped by 14 percent to P41.21 billion in July this year from the previous year’s P47.95 billion.

Residential projects accounted for 67.3 percent of the total construction projects in July.

There were 9,652 residential projects in July, down by 2.9 percent from 9,944 projects in the same month a year ago.

The value of residential projects in July dipped by 10.5 percent to P15.97 billion from P17.85 billion in the same month in 2023.

Meanwhile, the number of non-residential projects went up slightly to 2,907 in July from 2,903 in the same month last year.

The value of these projects dropped by 16.9 percent to P21.41 billion in July from P25.77 billion in the same month of 2023.

Permits for additions or any construction involving increases in the height or area of an existing building, also decreased by 7.6 percent to 500 in July from 541 in the same month of the previous year.

In terms of value, these projects rose by 21.6 percent to P438.30 million in July from P360.35 million in the same period a year ago.

Alterations and repairs of existing structures increased by 2.5 percent to 993 projects in July from 969 projects in the same month of 2023.

The value of alterations and repairs decreased by 18.4 percent to P3.07 billion in July from P3.76 billion in the same month last year.

Source: Philstar

UK Househunters raise a glass to good pubs

Moving house for a good school has been a feature of the property ladder for decades, but for some buyers there are other priorities. A survey suggests that buyers would also consider moving house for a good pub.

As the number of classic local pubs declines, more homeowners consider them a local amenity worth considering when looking for a property. The survey, by the estate agent Jackson- Stops, found that 75 per cent of respondents rated a good pub as the most important “lifestyle” amenity when looking for a new home, ahead of a sports centre, health club and other bar.

Additionally, 26 per cent of buyers said that living near a National Trust property or stately home was a priority. Nick Leeming, chairman of Jackson- Stops, said: “It is heartwarming to see the nation’s support for local businesses, a yearning for the high streets of old.

Villages that still embody these characteristics undoubtedly command a sizeable house price premium as a result. “In particular, in the face of depleting local pubs, the popularity of villages and homes near well-regarded watering holes will continue to grab homebuyers’ attention. “Just like our homes, our local pubs can represent more than just a place to eat or drink, acting as a local focal point to make new acquaintances and connect to the community.

They say a dog makes a house a home; then perhaps for British homeowners a pub makes the perfect community.” The survey classified amenities into three categories: lifestyle, local services and shops. Pubs came out top on the lifestyle category, while among local services buyers prioritised GP services, broadband and public transport.

For shops, Britons are also drawn to the traditional high street: post offices, farm shops and butchers all made the top five. Leeming said: “In an economy where many small businesses such as pubs and farms are struggling to survive, those villages and towns with genuinely thriving high streets and well-regarded eateries will be harder to find, and as a result those left will become the focus for prime homebuyers.”

The decline of the local pub has long been linked to a loss of community feeling and belonging. One study by King’s College London even found that the loss of a local pub impacts political behaviour.

Researchers examined the characteristics of pubs across the country and identified those which they labelled community pubs: long-standing local watering holes, often independently owned, which had become the last remaining community space in predominantly working class areas.

Source: The Times

Residential prices expected to rise 2.2% annually through 2026

Residential real estate prices in Metro Manila are projected to increase by 2.2% annually through 2026, reflecting a “flattish recovery” amid the exit of Philippine Offshore Gaming Operators (POGOs), according to Colliers Philippines.

“Prices are likely to revert to pre-pandemic levels in the third quarter of 2029,” Joey Roi Bondoc, director and head of Research at Colliers Philippines, said during a briefing on July 31.

The Philippine residential segment will see elevated vacancies as POGOs are set to vacate the country by year-end, according to consulting firms.

Colliers forecasted that rents are set to grow by 1.6% annually from 2024 up to 2026 and will return to pre-pandemic levels in the second quarter of 2028.

“The growth of residential real estate loans is slowing down. From 2017 to 2019, which was a peak period for residential demand across the Philippines, especially in Metro Manila, demand was partly influenced by POGO demand,” Mr. Bondoc said.

President Ferdinand R. Marcos, Jr. has ordered a total ban on all POGOs due to their ties to illicit activities such as financial scams, money laundering, prostitution, and human trafficking.

Metro Manila central business districts currently have 159,000 condominium units as of the second quarter of 2024.

“Currently, vacancy is at 17.7%. With POGO demand, we’re likely to see that inching up to 25.4% by the end of 2024,” Mr. Bondoc said.

The Metro Manila vacancy rate will reach 24.9% in 2025, he said.

He added that for the Bay Area, where POGO employees and residents are mostly concentrated, vacancy is expected to surge to 55% from the current 28% without POGOs by the end of the year, and 53% in 2025.

Meanwhile, Leechiu Property Consultants, Inc. Founder and Chief Executive Officer David Leechiu said the residential sector’s high-end condominium market will continue to be resilient, but the middle market “will be hurt badly.”

He added that the middle market condominium will become cheaper to rent and will fall even faster and deeper than the office segment.

“I think what used to rent for P600 per square meter will very soon be renting for P300 or P250 per square meter in residential,” Mr. Leechiu said.

POGOs will vacate a million square meters of residential space, he said.

“I think a lot of the consumer sector will also be impacted because these POGOs employ thousands of Filipinos that are local that have to submit their recordings, and then, now, it’s going to be harder,” he added. 

Source: Business World