Phl property market resilient amid corruption issues

As corruption is an issue that affects us all, its impact on various industries cannot be denied.

- By CATHERINE TALAVERA

However, despite massive corruption issues recently brought into the spotlight in the Philippines, the property market remains resilient as stakeholders focus on improving compliance and transparency initiatives.

"While corruption remains a longstanding concern, the Philippine property market continues to show resilience," KMC Savills chief executive officer Joe Curran told The STAR in an email.

"Investor sentiment has become more discerning rather than withdrawn. Many are now focusing on developers and locations with strong compliance, transparency and ESG (Environmental, Social and Governance) practices. The government, in turn, has been introducing digital systems for permitting and land titling as well as implementing public financial management reforms to improve accountability and investor confidence," he added.

In a recent interview with reporters, Leechiu Property Consultants chief executive officer David Leechiu said the impact of corruption issues on the property market is likely temporary.

"There might be a pullback in transaction volume, but I don't think prices are going to fall. I think this is highly temporary," Leechiu said.

"As far as the property market is concerned, we are very blessed because the office market continues to perform very strongly. Despite all the problems of the world and this country, the property market continues to perform very well. Data centers, malls, office tenants and residential tenants are expanding. And what you see, which is the depression in the stock market and the depression in the currency, it's all sentiment-driven," he added.

Caution on luxury market

Asked to comment on reports that the luxury residential segment has seen weaker demand since corruption issues regarding flood control projects surfaced, Curran said there has been some caution.