In a compelling presentation delivered by Valerie Jane Soliven, Executive Vice President of Rockwell Land, she shed light on the current macroeconomic landscape in the Philippines and emphasized the potential for investment in the real estate sector.
Soliven’s remarks provided valuable insights into the country’s economic recovery, supported by key performance indicators and the promising future of the property market.
Soliven began by addressing the nation’s GDP growth, stating, “Looking at Philippine’s GDP growth, we have witnessed a steady rebound since the peak of the COVID-19 crisis in 2020. From a contraction of 9.5% in that year, we recorded a growth of 5.7% in 2021, mainly due to the low base effect. However, in 2022, the Philippine GDP experienced accelerated growth at 7.6% and is expected to further expand by 6.5% this year.”
Highlighting the Philippines’ economic performance in comparison to other regions, Soliven added, “In 2022, both the Philippines and the United Arab Emirates outperformed other economies, with GDP growth rates of 7.6% and 7.4% respectively. Looking ahead to 2023, our forecast predicts that the Philippines will continue to outperform other countries with a growth rate of 6.5%.”
Soliven also touched upon the importance of various key performance indicators in driving economic recovery. She highlighted the contributions of regions such as NCR, Central Luzon, Calabarzon, Western Visayas, and Central Visayas to the Gross Regional Domestic Product (GRDP).
Soliven stated, “What we find exciting are those regions that are high in contribution and are also growing fast, such as Central Luzon where Pampanga is and Western Visayas where Bacolod is.”
Emphasizing the significance of the working-age population, Soliven noted, “Out of the total population of 109 million individuals, more than half—or 69.40 million—are within the 15 to 64 years old working-age bracket. This substantial segment has the potential and capacity to boost the country’s economic recovery.”
Regarding unemployment, Soliven expressed optimism, stating, “The unemployment rate has been trending down since 2021 and stood at 4.3% by the end of 2022. This signifies positive progress and indicates a healthy labor market.”
Soliven highlighted the importance of overseas Filipino worker (OFW) remittances, stating, “OFW remittances have always been one of the backbones of the Philippine economy. While remittances experienced a temporary drop during the pandemic, we are now witnessing an upward trend as the world reopens. In 2022, total remittances increased by 4% to reach US$33 billion.”
Drawing attention to the real estate sector, Soliven remarked, “The Philippine property market is showing signs of recovery, particularly in the luxury segment. Building permits have increased, and vacancy rates have decreased to 12% in Rockwell Center, significantly lower than the national average of 17.6%. We are also observing an upward trajectory in rent and property prices.”
Addressing the comparison between real estate and other investment instruments, Soliven highlighted the investment grade rating of the Philippines. She quoted, “The Philippines is still grouped together with investment-grade countries, as evidenced by credit ratings from Standard and Poor’s, Moody’s, and Fitch.”
Soliven stressed the potential of real estate as an investment option, saying, “While real estate typically earns better than bonds but less than stocks, it offers stability and serves as a hedge against inflation. Moreover, it provides the benefits of physical asset ownership and leverage possibilities
