BY Meagan Wenceslao ON Mar 27, 2020
We hope you are all staying healthy and sane – at least. Over the past weeks, the Philippines went through rapid changes, which we did not perceive to come anytime soon.
The Coronavirus pandemic, also known as CoVid-19, greatly impacted the real estate market just like other industries.
Impact Will Be Different Per Sector
Considering the Philippines’ geography, the impact of the economic disruption in real estate will vary from one state or metro area to another. Metro Manila, for example, is exposed to office, commercial and residential spaces. Huge number of layoffs will lead to smaller office space purchases. And probably the work-from-home shift will stick to some degree.
Rental Apartment sector must prepare in dealing with late payments from tenants, especially those who were greatly affected by the economic decline, such as being laid off from work.
The tourism industry, like Beaches for sale, may feel an indirect impact on reduced income, as people put a damper on travel.
Industrial Spaces may feel short-term impacts from interruptions in the supply chain. But they may observe an increase in demand. As this pandemic experience would encourage more online shopping, warehouse development could be stimulated.
Around ten to twenty years ago, real estate agents were valued for information. Now, the true value of a real estate agent is through their negotiation skills, relationships with other brokers, and their ability to keep up with the times with marketing strategies and processes.
Real Estate Selling will not stop. Majority of people now are dedicated to their devices, thus technology will play a central role in homebuying. Being stuck at home, people will tend to finding the place they want to buy via their smartphone or tablet.
More evolutions may be on the way as the after-effect of the pandemic situation enters the fray. An emphasis on technology, for example, may result in a streamlined, more efficient homebuying process.
We may expect a slower market than we’ve become accustomed to the last few years but don’t mistake this for a buyer-friendly environment. Consumers will still continue to absorb available inventory, and the market will remain competitive.
For now, we are all expected to stay at home and observe safety precautions. For updates regarding CoVid-19, you may check the DoH Website.
Earthauz team is currently doing further studies to analyze the effect of the pandemic on the PH real estate sector. Be updated on its release by following our Facebook page.
Marketing Associate of Earthauz