Philippine property to enjoy 2013: consultancy

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.

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