The Effects of Covid-19 in the Philippine Real Estate

 

We are all facing an invisible enemy. We are at war with the Coronavirus or COVID-19 which seemed to have plagued the world with its omnipresence in our lives and media coverage concerning it. It has changed our lives radically without ever revealing itself directly. The pandemic is now truly what we can call a global phenomenon. Imagine it has affected 2.6 billion people (roughly a third of the world’s population) as we are all living under some lockdown or quarantine. We are all asked to stay home as offices and shops temporarily close and a small percentage of working individuals are instructed to work from home.

 

COVID-19 had changed the way we go out as we need to follow specific health and safety protocols as well as be cautious of social distancing. Wearing of face mask & shields, bringing of alcohol or hand sanitizers have become a must for everyone. This is what “the new normal” is all about.

 

Admittedly, the rapid spread of the dreaded Coronavirus disease of COVID-19 has thrown a big curveball on most professional industries. Who would’ve thought how the Covid-19 pandemic would turn out to be one of the most challenging crisis the entire humanity would face? No one had the slightest idea, we had probably underestimated Covid and thought it would just be as simple as having a flu virus. But now that we knew the severity of the Covid virus with its different variants, it was staggering and at the same time devastating because it has brought the whole world to its knees. It has made the rich and the poor equal. It has stirred uncertainties and confusion. It has overwhelmed the frontliners in the healthcare system. It has eradicated established pioneer industries and businesses we thought would last forever. Indeed, COVID-19 disrupted every known aspect of people’s lives, the government, businesses, and economies worldwide.

 

 Now, how bleak is the Philippine real estate after it became uncertain as the pandemic halted much business, travels were restricted as well as non-essential activities. The workforce was also put temporarily on hold and some of which eventually led to permanent closures. There were many properties that bore the biggest blow out of this pandemic. Amid all the drastic changes as well as learning all the lessons the hard way, real estate stakeholders and experts have long been eyeing recovery. The Filipinos are more than hopeful for more opportunities to be able to bounce back in the next coming months.

Inquirer Property recently polled industry experts who shared their insights and forecasts as well as vital key points on how we would all rise from this pandemic. According to them, recovery in real estate shall return once the consumers and investors gain back their confidence. Investor confidence shall further boost both the residential and office sub-sectors. The COVID-19 pandemic sabotaged an upward trajectory for the real estate industry. The sector ground a halt in March of 2020 and is getting its bearings only in late 2020. 

Millennials amidst pandemic : from renting generation to homebuyers

 

Millennial homebuyers

Millennials are known to be carefree, free-spirited, and they enjoy living life to the fullest – the YOLO [You only live once] culture. When it comes to their lifestyle, they prefer to rent rather than buy. Millennials are often thought to be the generation that shied away from homeownership. But this reality is changing, interestingly amidst this pandemic, when millennials are actually hitting the property market. Millennials pushing through with their purchase decision are now proud homeowners despite the extraordinary situation.

Here’s a list of the factors that have contributed to their change of heart:

• New financial priorities

The absence of retail shops and outlets for leisure because of travel restrictions and community quarantine measures, caused millennials to redirect their finances to long-term investments, such as housing. Because they are staying at home for long periods, they started to realize the importance of an ideal space they need and want.

Remote work-from-home set-up among companies