MANILA, Philippines -- Dollars sent home by overseas Filipinos will continue to power the real estate sector in the foreseeable future, keeping property prices firm and helping it avoid a downturn amid global economic uncertainties, according to a study by a property consulting firm.

The study by CB Richard Ellis Inc. said purchases of real estate were still driven by end-users rather than speculators, which lends more strength to the market.

"The primary movers for both horizontal and vertical residential developments are still the inflow of dollars from overseas Filipinos and workers, the empowered and expanding middle class, low lending rates and flexible payment terms from property developers and banks,? it said.

The company?s assessment was contained in its study about market conditions in the fourth quarter of 2007, which was released this week.

?Owning a home is one of the ultimate goals of every Filipino and the opportunities present make that goal within reach,? the study said.

The strength of the property sector was also evident in the market for office space, it added.

It said the upscale office leasing market remained robust even as overall vacancy across all districts increased to 1.11 percent in the fourth quarter of 2007 from 1.00 percent in the third quarter.

?The low vacancy indicates demand still outpacing supply,? the study said. ?This is expected to continue as more BPO [business process outsourcing] companies are eyeing to set up operations during the year.?

There was also a new supply of office space turned over during the period, it said.

The new supply came by way of the turnover of newly completed buildings and an expansion of a ?Grade A? building in the Makati business district, it said.

Makati prime office rent remained stable at P1,200 a square meter a month even as vacancy decreased to 1.00 percent from 1.23 percent the previous quarter, the study said.

?This is indicative of the market temporarily stagnating in anticipation of major tenant movements in the coming months,? it said. ?Landlords are being prudent as further increases in their rates might send negative signals to major tenants whose lease agreements are up for renewal.?

The study said the Grade A office market showed a different behavior, as some office buildings reduced their rent by six to eight percent over the previous quarter, bringing the average rate to P862 a square meter a month from P891.

?This indicates that landlords have started to ease on the lease rates given that a number of large tenants in these buildings are contact centers,? it said.

Vacancy in this segment fell to 1.16 percent from 1.38 percent in the previous quarter, it added.

The additional 5,000 square meters from the expansion of the GT Tower had little effect to curb the decrease in vacancy, it said. With editing by INQUIRER.net