PH developers rationalizing assets, consultancy firm says

Major developers in the country have started revisiting their playbooks and rationalizing their assets in 2025 as they reassess their bets on the real estate industry for the next decade, consultancy firm PRIME Philippines said Friday.

According to PRIME founder and Chief Executive Officer Jettson Yu, there has been a shift in fundamentals of developers, and this has caused a number of them to liquidate assets and channel their funds into other ventures.

"In 2025, we have noticed a dramatic shift on the asset rationalization of developers and investors. You see big developers, top 10, top 20 developers who started liquidating some of their idle and non-core assets for the first time since 2010 to 2019," he told reporters in Taguig City.

"For me, that's a massive signal that they are raising liquidity, lessening their debts, and at the same time, repositioning for the next five to 10 years," he added.

Yu said one developer has liquidated its assets initially meant for residential developments to move into renewables, while another in Metro Manila involved in prime properties has moved into cold storage. He also cited another township developer that has shifted into high-end subdivisions.

"I think what's influencing their rationalization of their assets and their playbook is more about their own bets of where the real estate is heading in the next five years and 10 years, and where the maximum return will be," he said.

"This is a point in time that you can say, if you talk to all the developers in one room, everyone will give you different answers. The foundations and fundamentals they're holding are different now," he added.

Millennial, Gen Z market

Yu also noted that the capital efficiency measures are being evidenced by developers coming together for joint venture projects, even as they continue to compete with another for the market being dictated primarily by millennials and Gen Zs.

"These people are already becoming a major part of our consumers. They are driving where the capital flows. They are telling developers what we want, what we do not want, what we are open to, what we really rate at the same time, so I think that is very important to note," he said.

PRIME vice president Joy Rosario said the asset rationalization is also being seen in the industrial segment, where developers are no longer pushing for ready-built developments.

"They are now very, very, very meticulous when building. They do build to suit… Remember, the tenants are really looking for efficiency that will support their entire supply chain. They're not anymore about location and price," she said. — VDV, GMA Integrated News