However, leading property service provider Colliers International stated in its latest property bulletin that consumption remains focused on basic goods and purchases are increasingly being made through debt as a result of commercial banks’ aggressive expansion of their credit card business.
On the supply side, the completion of seven projects in 2001 with an aggregate new supply of 213,825 sq.m. increased the stock of leasable retail spaces in Metro Manila by 6.8 percent to 3.36 million sq.m. In the fourth quarter of 2001 alone, projects that completed were Ayala Land’s Metropoint and SM-Keppel Land’s The Podium. Throughout 2002, the stock of leasable retail space is forecast to expand by 3.1 percent to 3.47 million square meters.
Consequently, Manila-wide retail end-2001 vacancy inched up to 13.7 percent from the previous quarter’s 13.2 percent.
Richard Raymundo, research manager of Colliers International, said "we expect vacancy rate to remain at double digits for 2002 although this will be concentrated on small and independent retail centers.