Rodrigo Duterte (left) with former president Benigno S. Aquino III during a meeting in 2013. (Photo: Ryan Lim / Wikimedia Commons)
The recent election of Rodrigo Duterte as the Philippines’ next president will bring positive changes, especially in view of his countryside development plans, infrastructure and agriculture focus, increased government spending and anti-crime priority.
These goals are expected to have a positive impact on different sectors of the market over the longer term, including property, which was named the most preferred portfolio in a report published by Macquarie Research.
“Countryside development should help the property sector, in addition to specific issues such as REITs reinstatement (helping recycle capital as another funding alternative), beneficiary of infrastructure enhancements, as well as on tax reform,” said Macquarie analyst Gilbert Lopez, the report’s author.
As a result, the country’s top property developers are expected to benefit under Duterte’s term. Macquarie’s top picks include Ayala Land, Megaworld and Robinsons Land.
The report stated that Ayala Land stands to gain the most from the government’s countryside development plans as it has a land bank of over 9,000ha, the largest in the country.
Megaworld also has a nationwide land bank and property portfolio, while Robinsons Land is the most geared for REITs as it has the largest mix of investment properties, added the report.