A shortage of construction workers in the Philippines has indirectly caused home and office property prices to increase, according to Joey Bondoc, research manager at Colliers International Philippines.
Bondoc said that fewer laborers forced private-sector companies to delay construction projects. In 2017, Colliers expected the addition of 16,200 residential units, yet an estimated 7,400 units were only delivered between January and September due to the skills shortage.
Build, Build, Build
The Philippine government plans to address the issue of project delays and high prices through the Build, Build, Build $180-billion infrastructure program. The initiative aims to bring back skilled workers that work overseas, as they will be instrumental in building new houses, roads, bridges and airports among other vital infrastructure.
However, other developed countries such as Japan and Singapore are also in need of more builders. This will likely make it harder for the Philippine government to woo offshore Filipinos to come back home since salaries in these countries are higher. Despite a shortage of skills, Colliers expects property developers to move forward with their expansion plans, particularly outside Metro Manila.
More developers will look into nearby provinces from Metro Manila for opportunities to develop new townships, as closing lease deals remain challenging in the condominium segment, according to Colliers’ Top 10 Predictions For 2018 report.
Township developments have become more popular due to the accessibility of many different facilities near a resident’s home. In Cavite, some of the current projects include the Lancaster New City. A review website lets you compare prices among several projects, which will be helpful if you are buying a new house or marketing a new development.
Unless the government becomes successful in bringing overseas workers back home, high home prices may continue to be a problem. If you were working outside the Philippines, would you return with the promise of a new job?