The Philippines is enjoying the biggest boom in the history of Real Estate and will continue for about 5 more years, report say.
This is mostly driven by three sectors: 1) Chinese investors and workers; 2) Filipinos working abroad ; 3) business processing outsourcing and IT.
In Leechiu’s Market Report dated March 2019, the highlights in the current Philippine property market are as follows:
• The highest land value in Bonifacio Global City at P1.3 million per sq.m. and the highest condominium price at P540K per sqm in Shang at The Fort.
• Offices at Bay and Alabang still enjoy the lowest vacancy rate at 1 percent — translating to record rental rates with P1.2K/sq.m./month in the Bay and P750/sq.m./month in Alabang. Makati City and Bonifacio Global City will have very low supply of office space by 2021.
• There is only 216k sq.m .of PEZA accredited space so far this year in Metro Manila against forecast demand of 450K sqm from the IT-BPM industry—this deficit will be the biggest hurdle for growth in IT-BPM expansion—there are 29 buildings (totaling 544K sqm of vacant office space) under PEZA application across Metro Manila. LPC pleads for the government to approve more PEZA zones in Metro Manila and across the Philippines. Quezon City has the largest supply of PEZA Accredited space from now until 2023.
• The Philippines has recorded more than 200K sq.m. of office demand as of 1Q 2019. The IT-BPM industry led the Philippine office demand with 115K sq.m. or 56 percent of the 1Q 2019 take-up followed by the Offshore Gaming industry with 36K sq.m. With Metro Manila making 92 percent (187K sq.m.) of that demand. Regional districts have started strong with Clark, Tarlac, and Davao leading the provincial sites.
• Offices at Bay and Alabang still enjoy the lowest current vacancy rate at 1%.
Makati City and Bonifacio Global City will have a very low supply of new buildings coming in by 2021. We are seeing record high office rental rates across the districts.
Credits to : Tony Lopez of Manila Standard
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