As China establishes warmer relations to neighboring countries such as the Philippines, their “One Belt, One Road” initiative is expected to drive more Chinese investors to developing countries in the East and South Asian markets.
As per Colliers, in a recent radar report entitled “China’s One Belt One Road: The Dragon Spreads Its Wings over Asia”, Colliers International notes that China’s USD1 trillion OBOR project intends to get about 60 economies to invest in infrastructure to develop land and maritime routes which comprise the old Silk Road network that once connected Beijing to Central Asia and European economies.
Colliers believes that although the Philippines does not lie directly on the two major routes in China’s OBOR initiative, there appears to be plenty of room for cooperation that would benefit the Philippines. In fact, the warmer relations between the Chinese and Philippine governments have been benefiting the Philippine economy with growth trickling down to property segments such as office, residential, hotel, and industrial. A more active participation of China into the Philippines’ ambitious infrastructure development program should help sustain growth in the local property sector over the medium to long term.
Colliers sees greater foreign participation in funding major infrastructure projects that should prop up land values across the country. Among the infrastructure projects that are up for possible financing are the Davao City expressway, Panay-Guimaras-Negros Inter-Island Bridge, Subic-Clark Railway, and the Laguna to Bicol passenger rail. All projects are outside of Metro Manila, lending support to the government’s decentralization thrust. Colliers believes infrastructure implementation and decentralization should provide a favourable backdrop for a thriving Philippine property market.
