Filipinos’ fondness for online shopping is set to further boost Manila’s logistics property rents this year after surging nearly 40 per cent in 2023, catapulting the Philippines’ capital over Sydney as the best-performing city in Asia-Pacific for this category, according to Knight Frank.
Industrial property rents are expected to rise by another 3 per cent to 5 per cent this year, according to a report by the real estate consultancy.
“The surge in the number of online merchants in the Philippines has significantly increased the demand for logistics space in Manila,” said Christine Li, head of research for Asia-Pacific at Knight Frank.
Online retail in the Philippines has grown five times since 2019, making it the fastest growing market in Southeast Asia, according to data cited by Knight Frank.
E-commerce sales in the Philippines are forecast to hit US$19 billion in 2026, growing at a compound annual rate of 17.9 per cent from 2022, according to local media reports, citing research from data and analytics provider GlobalData.
The growth in online retail sales is supported by the nation’s 5.6 per cent economic expansion last year, making it Southeast Asia’s fastest-growing economy.
The rental growth of logistics property in Manila helped lift the entire segment in Asia-Pacific, according to Knight Frank. Source: SCMP
