The Impact of COVID-19 on the Real Estate Market in the Philippines

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The Philippine real estate industry is among the best in the world. Apart from the local investors, meaning, the Filipinos, few of the biggest investors to this industry in the country are people from mainland China, Southeast Asians, and of course the Westerners. With the threat of COVID-19 around the globe, how has this affected the local real estate market?

The Philippine Real Estate Industry

Philippine Star’s Mary Ann Reyes wrote, “Several developers have focused on incorporating green architecture in their developments, due to an increase in temperature and carbon emissions and to facilitate natural lighting and ventilation utilizing renewable energy.”

These are only among the recent developments that real estate developers and owners are placing in these homes. Yet, the pandemic is changing the way the world economy moves.

However, with the continuous impact of the deepening COVID-19 crisis, the real estate market is also being affected. Data from Global Property Guide revealed that the housing market will slow down this year, since potential buyers are expected to take on a different approach, the “wait-and-see” strategy, out of the health crisis. No one can blame them since, at the end of the day, great caution when investing is the best choice.

The Global Pandemic

The COVID-19 pandemic is affecting about 2.6 billion people, combined figures from deaths, infections, and recovered. This includes individuals under the lockdown and quarantine measures from the government. The impact in the worldwide economy cannot be denied, especially that people are advised to stay at home, offices, and shops. Under the “new normal,” the real estate sector isn’t spared.

News reports even say that it might take a year or two before businesses in the Philippines can recover. In the real estate market, the changes in the trends are already evident. For instance, the demand for online real estate shopping continues, but because of the work break, the scrutiny and inspection of these living spaces have come to a halt. In general, the demand for these real estate establishments is also being affected negatively.

Paying Rent

Part of managing real estate investments in paying rent. This is in part of the business owners who manage stalls in these condominium buildings, and unit owners who own spaces. The pandemic, coupled with the global meltdown has urged businesses to close down offices, and thus, it is more difficult to make these rental payments. Many individuals have submitted letters to landlords requesting waivers in their account, in lieu of the recent crisis. The responses are mixed.

The disease is adding a burden to the current status of the Philippine economy. While it remains lucrative for investors to pool in their investments, they know that the country’s economy is still, generally, risky. Widespread corruption is present, affecting stability.

In 2019, the economic growth of this Southeast Asian nation submerged to an eight-year low at 5.9 percent, after achieving 6.2 percent in 2018. The figures point back to the implementation of that year’s national budget and the impacts of the trade war between China and the United States. The International Monetary Fund is predicting a 6.3 percent growth rate for the Philippines in 2020, but the parties are yet to see.

In the country, the real estate industry is classified into condominiums, single-detached and attached houses, duplex houses, and townhouses.

Kathryn Bernardo is the newest face of Gatorade Ion

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Gatorade Ion, the drink that’s best for everyday hydration, takes a step further into promoting this important hydration reminder to all Filipinos by officially welcoming popular young Filipino actress, host, and celebrity Kathryn Bernardo to its ranks as its newest brand ambassador in a catch-up session on Instagram Live last June 20.

Bernardo is the perfect personality to endorse Gatorade Ion—with her showbiz schedule, hobbies, and interests keeping her busy and regularly exposed to heat all the time, she always needs fluids to make sure she performs her best. Gatorade Ion’s optimal amount of fluids and ions and formula of low sodium, no preservatives, no artificial flavors, and colors are what keeps non-stop go-getters like her hydrated. 

“I’m so happy and very honored to be the newest endorser for Gatorade Ion,” said Bernardo. “I believe hydration is very important for anyone, especially in a warm country like the Philippines where everyone is always on-the-go. Gatorade Ion is the best way to help us avoid the dangers of being dehydrated. It is in citrus quench in flavor, which makes it so refreshing on a hot day. It’s my new favorite go-to drink, I swear.”

“We’re really excited to have Kathryn aboard for Gatorade Ion,” said IC Sta. Maria, PepsiCo Philippines Marketing Manager for Hydration. “Regular hydration every day is a must, and with her lifestyle, Kathryn is the ideal person to promote the benefits of staying hydrated.”

The catch-up session with Bernardo, hosted by her good friend and fellow celebrity Robi Domingo, revealed that she had taken advantage of the quarantine to pursue new activities, such as baking, watching K-dramas, and learning to play the piano, just to name a few.

And she also even gave a special message to boyfriend Daniel Padilla, who takes care of Bernardo and her family during the quarantine by bringing them goods and groceries. “Hindi enough ang thank you. Grabe lang yung alaga niya [sa aming lahat]. Hindi siya nagkulang—siya talaga yung nagse-set ng bar. I’m really thankful.”

No matter what we do and what we’re into, one thing that’s a must for everyone from all walks of life is the need for everyday hydration. The risks and dangers of dehydration, especially in a tropical climate such as the Philippines, are all too real—which is why we need to constantly hydrate.

To keep up with everything about hydration, everyday life, and Gatorade Ion’s newest partnership with Kathryn Bernardo, follow @gatoradeion on Facebook, IG, and Twitter. Stay hydrated with Gatorade Ion! Available in convenience stores and supermarkets nationwide. #GatoradeIon #EverydayHydratION

Enjoy Greater Cost Savings and Convenience with ShopeePay Day! On June 25, users can enjoy exclusive discounts, free shipping, and vouchers

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Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, launches ShopeePay Day, to offer greater convenience and cost savings as more Filipinos turn to cashless payments when they shop online. On June 25, ShopeePay users can look forward to exclusive limited-time deals and promotions, including free shipping and coins cashback.

Ruoshan Tao, Head of Marketing at Shopee Philippines, said, “Many Filipinos rely on e-commerce to meet their everyday needs as they live, work, and play from home. We are pleased to introduce ShopeePay Day to meet this trend, and offer our users greater convenience and savings as they shop with us.  As e-commerce takes on greater importance in people’s lives, Shopee will continue to innovate and introduce initiatives to enhance the online shopping experience for all.”  

On June 25, ShopeePay users can enjoy the following benefits as they shop from home: 

● One-day Exclusive Free Shipping: Users can enjoy free shipping with no minimum spending on ShopeePay Day.

● Exclusive Limited-time Deals and Promotions: ShopeePay users can look forward to exclusive promotions, including ₱125 off with every ₱500 minimum spend and further discounts when they purchase physical and digital products or pay their bills via ShopeePay. 

● Special Lucky Draw: From June 25 to 27, regular ShopeePay users stand a chance to win exciting prizes via a special lucky draw when they top up their ShopeePay wallets . This includes ShopeePay credits, Shopee coins, and vouchers. 

First-time ShopeePay users can easily activate their ShopeePay accounts in three simple steps:

1. Users need to log in to the Shopee platform, click on the ShopeePay tab, and then click ‘Setup ShopeePay’. 

2. Users should fill up the personal information form. They will receive a one-time password on their mobile phones after they complete the form.

3. Users need to create and re-confirm their ShopeePay pin. 

Visit https://shopee.ph/m/shopee-pay for more information about ShopeePay.

Download the Shopee application for free through the App Store or Google Play and activate ShopeePay. 

Globe, GCash introduce exclusive data promo for prepaid subs

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Globe prepaid subscribers are up for a treat, as they get a new exclusive mobile promo from GCash that enables them to avail of more mobile data connection for less, allowing them to enjoy streaming videos, to connect with loved ones on social media, and to use their time for productivity.

Through their GCash apps, Globe prepaid subscribers may avail of the exclusive data bundle GoEXTRA90, which offers users with 8GB of mobile data plus unlimited calls to Globe and TM, unlimited texts to all networks, and 1GB of GoWifi access. This is 32GB for 360 pesos per month.

“Customers do not have to worry about staying connected with their loved ones even during the middle of the pandemic, because GoEXTRA90 lets them do this without having to leave the safety of their homes and without breaking the bank. We are offering this exclusive promo to our Globe prepaid subscribers to allow them to do more with less,” GCash President & CEO Martha Sazon said.

With GoEXTRA90, GCash users can enjoy these benefits for the low price of P90 when they register through the app. Even Globe Prepaid subscribers who are non-GCash users can avail of this exclusive promo simply by downloading the app for free in the iOS App Store or Google Play Store.

The pandemic has forced everything to go digital, including schools and offices. GoEXTRA90 is the best alternative to conventional internet and mobile data plans because it provides a week’s worth of fast internet access and unlimited texts and calls for less than a hundred pesos.

“As demand in mobile data and Internet connection rises because of the pandemic, we at Globe have to provide better deals to make the lives of our customers easier. This exclusive bundle with GCash will definitely help promote productivity, while providing Filipinos with a means to cope with the effects of the community quarantines,” Globe President Ernest Cu said.

With GoEXTRA90, GCash users who are Globe Prepaid subscribers get better value for money. For 8GB of mobile data, subscribers can enjoy 96 hours of internet browsing or watch 16 hours of standard definition of videos online. This can also be used to attend online meetings via Zoom for those in a work from home setup or classes for students under remote learning.

On the other hand, the free voucher gives discounts to GCash users when they shop or dine in their favorite stores by using GCash as a payment method.

To subscribe to GoEXTRA 90, open the GCash app on Android or iOS, choose the Buy Load option, and look for the GoEXTRA90 in the ONLY ON GCASH! or the SURF tab.

Globe Fintech Innovations Inc. (Mynt), which operates GCash, is part of the portfolio companies of 917Ventures, the largest corporate incubator in the Philippines wholly-owned by Globe Telecom Inc.

GCash is available for download on the App Store and Google Play. For more information, kindly visit https://www.gcash.com/.

Shopee Sees “Online-First” Shift for Food Products, as Filipinos Adapt to the New Normal

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Consumers do a larger share of food shopping online, with a 2.5 times increase in users who buy food items on Shopee multiple times a month

Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, highlights significant changes in the food and grocery market as Filipinos become more “online-first” for food products. 

In particular, people are doing a larger share of food shopping online, with a 2.5-times increase in users who buy food items multiple times a month on Shopee. Sellers and brands adapt to this "new normal" by offering a wider variety of online food products and using live streaming to assure buyers of quality in real-time.

Ruoshan Tao, Head of Marketing at Shopee Philippines, said, 

“Social distancing has been a big part of our lives, and we have seen major changes in the way people think about and shop for their daily needs. In particular, buying food and groceries has become ‘online-first’ as consumers view e-commerce as a one-stop channel. Sellers and brands are adapting quickly, with Shopee as a vital platform for them to reach new customers. We see this as long-term evolution, and Shopee will continue to lead this trend in the years ahead.”

Shopee outlines four major trends in the food and grocery market in the Philippines:

1. Consumers become “online-first” for food products

Filipinos see e-commerce as the preferred channel for food and groceries, marked by:

● More Filipinos are shopping for food online: Shopee has observed a 2.5-times increase in the number of users who buy food products multiple times a month. This shows that Filipinos are shifting a larger share of food and grocery shopping online to reap the convenience of e-commerce.

● People shop for food around the clock: E-commerce is making it more convenient for consumers to shop for food items at any time. As a result, shopping activity stays high throughout the week, peaking on Thursdays, Saturdays, and Sundays.

2. Food and grocery shopping evolve as people adapt to Covid-19 pandemic

People are also buying a wider variety of food items online, as they make lifestyles changes at different stages of social distancing and the Covid-19 pandemic:

● High demand for staple foods and baking supplies in March: The onset of social distancing motivated people to ensure ready food supplies at home, with demand for staple foods and baking supplies increasing by 70 times.

● More “offline” food products bought online: Filipinos became more comfortable with buying food and groceries online as social distancing continued. In April, demand for beverages and alcohol grew 8 times on Shopee.

● Top products: Caramelized sugar syrup, evaporated milk, and food flavorings for baking.

3. Rural and male consumers among the most active online food shoppers

As buying food products online becomes a norm, Shopee has observed that shopping activity is proliferating among rural and male consumers:

● Spike in grocery demand among rural consumers: Consumers outside Metro Manila are also seeing e-commerce as a key channel for food and groceries because of reduced access to physical stores. Shopee’s food shopping activity from areas outside of Metro Manila increased 2.5 times in the past few months.

● Men are doing more grocery shopping and cooking: Male food shopping activity increased up to three times from 2019. Men appear to be doing more home cooking and grocery shopping in recent months, with seasoning products and baking ingredients as the most popular among male users on Shopee.

4. Brands and sellers digitalize with Shopee, use new tools to sell food online

Brands and sellers are adapting to the new “online-first” environment through Shopee. They are offering an extensive range of food products and leveraging new tools to sell online:

● Offering more choice and variety: Shopee has seen steady growth in the number of brands and sellers offering food products online, creating more buyers’ preference. On Shopee, the array of food products on the platform has doubled from 2019.

● Using new tools to sell food online: Brands and sellers use live streaming to sell food products more effectively. In recent months, Shopee Live has become a vital tool for sellers to showcase new items and assure product quality in real-time, driving more views and sales.

Tao said, 

“The Covid-19 situation and social distancing measures have created major changes in consumers’ lifestyles, affecting how brands and sellers conduct their businesses. We are committed to helping the Filipinos during this time of need, and we will continue to improve our platform to provide the daily necessities of every consumer, brand, and seller.” 

Download Shopee for free through the App Store or Google Play.