OFWS KEEPING RESIDENTIAL MARKET AFLOAT

Overseas Filipino Workers (OFWs) continue to keep the Philippine economy afloat. Latest government data show that on average, OFWs send home about USD3 billion in cash remittances every month. Economic analysts and banks are projecting these remittances to grow by about 3-4% per annum over the near term.

- By JOEY ROI BONDOC Director and Head of Research, Colliers Philippines

Remittances fuel our economy and essentially key segments of Philippine property. The remittance-driven consumption spending particularly benefits retail, hotel, and residential segments.

REMITTANCES FUELING PROPERTY DEMANDThe retail segment is dependent on these remittances as they fuel optimism in a consumption-led Philippine economy. The remittances sent home by Filipinos working abroad drive consumption

Colliers is optimistic that OFWs will continue to be a major plank of residential demand within and outside Metro Manila, driven primarily by strong end-user take-up for lot-only and house-and-lot residential developments.

spending, with the latest central bank poll indicating that more than 90% of remittance-receiving households allocate remittances to food and beverages. This spending partly drives demand for physical mall space and injects much-needed confidence for Philippine retail, which covers online and offline sellers.

The hotel segment also benefits from increased remittances, especially during summer and yuletide season. The remittances partly drive demand for hotel and restaurant spending, especially during peak seasons (summer and Christmas).