Michael Hearn Joins Colliers Philippines Q1 2026 Property Market Briefing as Guest Panelist
Hearn & Hearn Consulting Executive Director Michael Hearn joined Colliers Philippines as a guest panelist at the Q1 2026 Philippine Property Market Briefing, a timely industry discussion on the trends shaping the Philippine real estate and construction sectors.
Hosted by Colliers Philippines, the briefing brought together property stakeholders, industry leaders, and market specialists to examine current market conditions, investment considerations, and the evolving cost and delivery environment for developments across the country.
As part of the discussion, Michael shared insights from Hearn & Hearn Consulting’s experience in construction cost management, project delivery, commercial advisory, and sustainable development. His contribution focused on the realities currently affecting developers, investors, and project teams as they plan and deliver projects in a more complex market environment.
Key Insights from the Discussion
Construction costs remain under pressure
Michael noted that construction material costs continue to face short-term escalation, with increases of around 5–15% anticipated across key materials. The most significant pressure is being seen in materials affected by transport, logistics, and petrochemical-related costs.
He also highlighted that regional cost differences remain an important consideration. Using Metro Manila as a baseline, provincial construction costs as of March 2026 were indexed higher in key areas such as Cebu, Davao, and Cagayan de Oro, reflecting differences in local material availability, logistics, labour quality, and supply conditions.
For developers and project owners, this reinforces the need for early cost planning, realistic budgeting, and informed procurement strategies.
Cost planning must be more strategic
Drawing from previous market shocks, including the 2022 oil price surge, Michael observed that construction costs rarely return fully to previous levels once they rise. Even when global commodity prices ease, local pricing can remain elevated due to supply chain effects, market behaviour, and embedded cost increases.
He also noted that many project cost overruns remain avoidable. Projects can absorb unnecessary costs through unclear drawings, ambiguous contract clauses, poor sequencing, rework, and weak scope definition.
This is where strong commercial management and early advisory input become critical. Clear documentation, disciplined scope control, and practical procurement planning can help project teams reduce avoidable risk and protect project value.
Strengthening the sector requires action across skills, governance, and sustainability
The discussion also covered broader industry challenges, including skills development, project team capability, governance, and sustainability.
Michael emphasised the importance of hiring, training, and retaining competent teams, particularly in a project-based industry where too many developments begin by rebuilding teams from scratch. He also pointed to the need for a stronger performance culture, where quality, accountability, and solution-based thinking are prioritised.
On sustainability, Michael noted that the private sector has played an important role in advancing green building adoption in the Philippines. With more local government units integrating green building principles into city-level requirements, sustainable development is increasingly becoming part of mainstream project planning rather than a separate consideration.
Supporting Better Project Decisions
For Hearn & Hearn Consulting, Michael’s participation reflects the firm’s continued engagement in industry conversations that influence the future of construction and real estate development in the Philippines.
As market conditions continue to shift, developers, investors, and project teams need clear commercial advice, strong project controls, and practical risk management from the earliest stages of development.
Hearn & Hearn Consulting supports clients through Commercial Management, Project & Construction Management, Green Building, and wider construction consultancy services, helping project stakeholders make informed decisions across the full project lifecycle.
Hearn & Hearn Consulting thanks Colliers Philippines for the invitation and the opportunity to contribute to this important industry discussion.
For developers, investors, and project teams seeking clearer cost planning, commercial control, and project delivery support, connect with Hearn & Hearn Consulting to discuss how our team can support your next development.
Comments