Philippine property to enjoy 2013: consultancy
By Doris C. Dumlao, Philippine Daily Inquirer/Asia News NetworkPhilippine Daily Inquirer/Asia News Network-- The Philippine property market is headed for another good year this 2013, with urban land values and rental rates in Metro Manila likely to firm up alongside benign vacancy rates, according to property consultant Colliers International.
February 12, 2013, 3:45 am TWN
Colliers International Philippines associate director Julius Guevara said in a briefing that prospects were bright for the residential, office, commercial and hotel/leisure segments in the metropolis over the next 12 months. Demand for industrial estate, a laggard over the years, has also picked up, not from heavy manufacturing players but mostly from logistics and warehouse providers, Guevara said.
Aided by better-than-expected local economic growth and low interest rates, Colliers reported that land values in the Makati central business district (CBD) rose by 5 percent in 2012 to 291,000 pesos (US$7,100) a square meter and were likely to increase to 307,000 pesos in the last quarter of this year. However, this will still be lower than the 400,000 pesos/sqm valuation in end-1997 before the Asian currency crisis erupted.
The upswing is more pronounced at the Bonifacio Global City, where land values rose 28.1 percent last year to an all-time high 237,000 pesos/sqm and were seen to increase to 250,000 pesos/sqm by the fourth quarter of 2013.
In the Ortigas CBD, land values increased by 4 percent last year to 134,000 pesos/sqm and were seen by Colliers to rise to 139,000 pesos/sqm this year.
In the residential segment, Colliers reported that demand for the premium segments remained high in the fourth quarter of 2012, driving vacancy levels below 5 percent over the last three quarters. As vacancy remains low, rental rates are seen to improve by more than 6 percent in Makati CBD this year.
For the office sector, the overall vacancy rate dropped to less than 3 percent mainly driven by the strong demand from the business process outsourcing (BPO) industry.