More Malls Being Built by Developers in Time for Economic Recovery in Phillipines

Despite the gloom and doom of the economy, retail spaces are expected to remain in demand and steer the growth of this property segment as shopping-crazy Filipinos continue to shop at malls.

CB Richard Ellis, a property consultant, noted that some mall developers had announced expansion plans for this year. According to CB, growth in the retail property market depends on mall developers expressing optimism for the country’s quick recovery noting that developers are keen on building more branches despite the crisis.

Profits of listed mall developer SM Prime Holdings, Inc. rose approximately 7% to P6.4 billion last year as revenues climbed up by over a tenth to P17.8 billion, with consumers continuing to visit malls despite trying economic times. Notable mall magnate Henry Sy, Sr is among the country’s developers that continue to rake in a profit thanks to mall expansions and development.

Two of the country’s largest malls, SM North EDSA and SM Megamall, finished their expansion in time for last year’s holiday shopping season. The expansion of shopping mall SM North EDSA Annex in Quezon City gave it 90,000 square meters more shopping space, making it the largest mall in the country and the third largest in the world. The Philippines boasts housing four of the world’s largest mall including the SM North EDSA, SM Megamall, SM Mall of Asia and SM City Cebu.