Property developers are selling noncore assets and cutting debt as they brace for a market slowdown that could last another two to three years, consultancy firm PRIME Philippines said, as reported by BusinessWorld.
Developers have shifted their priorities this year toward preserving liquidity and strengthening balance sheets as rising construction costs and growing environmental risks weigh on investment decisions, PRIME Philippines said. The consultancy expects the sector to remain under pressure, prompting firms to offload noncore assets to raise cash and reduce leverage.
The asset sales are part of a broader defensive strategy among Philippine developers, who are navigating a prolonged downturn in residential and office demand. Industry observers say the next two to three years will be critical as companies adapt to higher input costs, stricter environmental standards, and shifting buyer preferences.