10/09/2026
π΅π ECONOMIC & REAL ESTATE UPDATE | SEPTEMBER 2026
π PH BUSINESS CONFIDENCE TURNS NEGATIVE β WHAT DOES THIS MEAN FOR REAL ESTATE?
A recent report citing the BSPβs July 2026 Business Expectations Survey shows a sharp deterioration in Philippine business sentiment.
The Business Confidence Index reportedly dropped to -20.3% in July, from 0% in June, as businesses expressed concerns over inflation, higher oil prices, geopolitical uncertainty, borrowing costs and the peso.
Other indicators cited in the report also weakened:
π΄ Business Confidence: -20.3%
π΄ Business Activity: -0.1%
π΄ Total Orders: -0.7%
π΄ Industry & Construction Capacity Utilization: 68.6%
π΄ 12-Month Employment Outlook: 9%
But this does not automatically mean another COVID-type economic crisis.
Business confidence measures expectations and sentiment. It is nevertheless an important warning signal because weaker confidence can cause companies to delay expansion, hiring and major capital investments.
π’ WHAT COULD THIS MEAN FOR REAL ESTATE?
In a cautious economy, we may see:
βοΈ Buyers becoming more price-sensitive
βοΈ Developers becoming more selective in land acquisition
βοΈ Businesses postponing expansion
βοΈ Longer selling periods for overpriced properties
βοΈ More motivated sellers seeking liquidity
βοΈ Better negotiating opportunities for cash-ready investors
βοΈ Greater preference for income-producing and economically useful properties
Interestingly, the report also noted that the share of industrial firms planning expansion increased to 20.8% from 18.7%.
This is why I continue to see opportunities in warehouses, logistics and industrial properties, income-generating assets, strategically located commercial properties, and properly priced development land.
π‘ THE MARKET MAY BE CHANGING β NOT DISAPPEARING.
Periods of uncertainty require a different strategy.
For sellers: Price realistically.
For buyers: Negotiate intelligently.
For investors: Protect liquidity and focus on value and cash flow.
For brokers: Stop merely collecting listings. Understand where the capital, demand and opportunities are moving.
Real estate opportunities remainβbut property selection, pricing, due diligence and timing matter more than ever.
Source: Bilyonaryo, βWorse than COVID-era levels? PH businesses turn gloomierβ, September 4, 2026, reporting on the BSP Business Expectations Survey.
DISCLAIMER: This post is for general market information and educational purposes only. It is not financial, investment, legal, tax, or economic advice, nor a recommendation to buy or sell any particular property or investment. Economic indicators and market conditions may change. Readers and investors should independently verify information and consult appropriate licensed professionals before making financial or investment decisions.
Samuel O. Lao, MM-REM
Licensed Real Estate Broker | REBL No. 1368
Samuel O. Lao & Associates
