Inflation, infrastructure freeze seen to hamper property development
Rising living costs, a sharp drop in public works spending, and slowing economic growth continue to drag on property development.
Manila, Philippines - Inflation, a drop in public works spending, and slowing economic growth are hampering property development, warned Senate President Sherwin Gatchalian during fresh Senate hearings. GDP growth slowed to 2.3% in the second quarter, the weakest expansion since 2017, prompting rating agencies and multilateral lenders to slash their forecasts.
A 32% collapse in public works construction, driven by spending freezes and project delays following corruption investigations, has frozen land development and stalled commercial buildouts along growth corridors. Elevated inflation, reaching 6.1% in August, has eroded household purchasing power. Real estate prices nationwide decelerated to 0.4%, with home values in areas outside Metro Manila contracting by 2.7%.
Senate budget scrutiny flagged over 7,000 proposed public works projects due to incomplete site documentation, while the flood control budget was slashed to P107.4 billion. Gatchalian urged the fast-tracking of priority legislative measures to stimulate economic recovery.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
