Articles News and Insights Philippine Real Estate Insights for June 2021

Philippine Real Estate Insights for June 2021

Know more about the real estate industry's activities in the Philippines for the month of June for the year 2021.


The local green building rating system Berde has been updated by the Philippine Green Building Council (PHILGBC) to include three categories, namely health and wellbeing, community engagement, and economic opportunities. This makes the fourth version of the system which was launched June 22.

Apart from the additional categories, it has also incorporated the Department of Energy’s 2020 edition of the Guidelines for Energy Conserving Design of Buildings to align with the current energy regulations and best practices.

According to Chester C. dela Cruz, PHILGBC senior staff II, all improvements made on this tool are for clearer intent for all credits as well as to enhance compliance to its different requirements.

There has been an upward trend in projects that want to undergo and achieve the Berde certification even amid the pandemic which can be considered a good indicator that the construction industry is beginning to mobilize again. Currently, there are 69 green projects that are registered and are in different stages of the certification.


Small Business Corporation (SB Corp) signed a Memorandum of Agreement on Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) for Truckers with the Alliance of Concerned Truck Owners and Organizations (ACTOO) to help the logistics sector recover from the impact it received during the pandemic.

This project expands SB Corp’s interest-free and collateral free loan facility, particularly to the truckers industry. According to Santiago Lim, SB Corp’s private sector representative, this loan facility has zero interest and no collateral for qualified ACTOO members.

Apart from the aforementioned features of the loan, the CARES program grants six months to a year grace period and three years of payment period, making it a total repayment period of four years.

Table 1. Granted loanable amounts based on enterprise asset size by CARES Program.

As Lim explained, SB Corp will be using the remaining P300M from the P4B allocation for non-tourism MSMEs. Although, this amount will be augmented with the P1.5B unused funds from P6B allocated for tourism MSMES.


Non-renewals and pre termination in leasing activity continue to lessen demand on office spaces in Metro Manila according to executive director for Worldwide Occupiers Services Team of KMC Savills John Corpus.

For the first quarter of 2021, there was a downtrend in new leases from a total of 50,000 sqm in January to approximately 25,000 sqm in May. On the other hand, vacated offices went from a low of 50,000 sqm in January to a massive increase of 150,000 sqm in February, only to decrease to 90,000 sqm in March.

The office space vacancy level in Metro Manila was at a high of 12.8% as of May this year and may continue to rise as non-renewals continue to climb.

Table 2. Highest vacancy levels per business district in Metro Manila as forecasted by KMC.

The Philippine Offshore Gaming Operators (POGO) currently only accounts for 2.8% of the office spaces in Metro Manila and accounted for 72% of the vacated offices during the period of January to May according to Corpus.


According to Megaworld Executive Vice President and Chief Strategy Officer Kevin Andrew L. Tan, they have seen numerous domestic sales in residential spaces in the last two months. These are mainly from local buyers that are eager to invest in projects outside of Metro Manila.

Residential project launches in Metro Manila have been mostly put on hold as the pandemic began by 2020. With more projects being established in the provinces, buyers are now looking more into projects in locations outside of the capital city.

Megaworld Corp. also notes that sales from overseas Filipino workers have been “resilient.”


The Philippines is the third most affected country among the selected developing nations with a decline in tourism of 84%. The top two countries with the highest reduction are Mongolia with 89% and China with 88%.

Based on the United Nations Conference on Trade and Development (UNCTAD) report, “the most affected regions are North-East Asia, South-East Asia, Oceania, North Africa, and South Asia.” Majority of the West are least affected when it comes to the reduction in tourist arrivals.

For many developing countries, tourism is an important revenue source. Experts expect tourism to return to pre-COVID arrival levels by 2023 or even later. The main factors that block its return are travel restrictions, low traveler confidence, slow containment of the virus, and a poor economic environment.

Currently, domestic tourism has been picking up as vaccinations have been rolling out. However, this does not do significant help, especially for developing countries that are highly dependent on international travel.


Business establishments have their operating capacities increased by the Department of Trade and Industry (DTI) in the National Capital Region (NCR), including Bulacan and Rizal. As for Laguna and Cavite, there is a retained ban on social activities.

Empty restaurant with wooden interior and furniture

Operating capacities for restaurants, commissaries, and eating establishments are allowed 40% for indoor dine-in for NCR, Bulacan, and Rizal; while Laguna and Cavite are only allowed 20%. They are allowed however to maintain 50% capacity for outdoor dining.

Beauty salons, parlors, barber shops, and nail salons are allowed 50% capacity for NCR, Bulacan, and Rizal, while 30% for Laguna and Cavite.

Meetings, incentives, conventions, and exhibition events in eligible venues that are accredited by the Department of Tourism and DTI are allowed to operate at 40% capacity whereas social events are allowed at 10% for NCR, Bulacan, and Rizal.

According to Trade and Industry Secretary Ramon M. Lopez, business establishments with Safety Seal Certifications can operate at an additional 10% operating capacity regardless of community quarantine classification. However, this also comes with stricter compliance to public health and safety standards and protocols.


Cahiles-Magkilat, B. (2021, July 01). DTI hikes Operating capacities of establishments in NCR Plus. Retrieved July 05, 2021, from

Cahiles-Magkilat, B. (2021, July 01). PH tourism arrival is third lowest among developing countries. Retrieved July 05, 2021, from

Cahiles-Magkilat, B. (2021, June 29). POGOs now ACCOUNT 2.8% of office spaces. Retrieved July 05, 2021, from

Cahiles-Magkilat, B. (2021, June 29). SB corp Expands ZERO-INTEREST, collateral free loan facility to truckers. Retrieved July 05, 2021, from

Garcia, C. A. (2021, June 21). Megaworld seeing uptick in residential sales. Retrieved July 05, 2021, from

Mirasol, P. B. (2021, June 29). Improved green building system accounts for community engagement, economic opportunities. Retrieved July 05, 2021, from