By Bernie Cahiles-Magkilat
The domestic retail property sector posted a worrisome 56 percent reduction in revenues during the more than two-month lockdown as establishments were forced to close operations momentarily.
Michael McCullough, managing director of property management and consultancy firm KMC Savills Philippines, said during a webinar on “Investing in Asia: Obstacles & Opportunities in Vietnam, Indonesia and the Philippines” that the retail sector was among the hardest hit in the property segments during the lockdown.
McCullough said this was revealed in two surveys conducted by KMC Savills Philippines during the onset of the Enhanced Community Quarantine in mid-March and for the month of April where retail property sector was badly hurt.
During the ECQ and modified ECQ period, establishments were closed and their tenants pivoted to take out and food delivery services.
“Retail, obviously, as a lockdown progress, the sentiment, their optimism dropped a lot and became a bit more unsure,” said McCullough.
McCullough expects recovery to have started last May and some more improvements this June when the general community quarantine took effect.
Under GCQ more malls are allowed to open and more establishments are allowed to operate resulting in more traffic on the road.
“So, we’re hoping to see people start to come back. I think restaurants are allowed to see people, and that’ll hopefully allow them to maintain their business,” said McCullough.