Easing inflation, policy rates to support residential market

Softer inflation and lower policy rates would be favorable for the residential market, according to a professional services and investment management company.

- - Catherine Talavera

In its latest market intelligence report, Colliers Philippines said lower inflation may lead the Bangko Sentral ng Pilipinas (BSP) to cut interest rates.

It cited the Development Budget Coordination Committee (DBCC)'s forecast of inflation to average between 3.1 and 3.3 percent this year, lower than the six percent recorded a year ago.

"Colliers believes that lower inflation will likely compel the central bank to cut interest rates," Colliers said.

"In our view, easing inflation and policy rates should have a positive impact on the property market, particularly for the residential segment which is still recording stifled take-up," it added.