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Philippine – office rent market hottest in Asia
PH office rent market hottest in Asia
By Roger M. Garcia | Posted on Jun. 08, 2013 at 12:02am | 496 views
In a press briefing, prominent commercial real estate services firm, CB Richard Ellis (CBRE) Philippines disclosed that the country’s office market is growing at record levels with occupancy rates hitting 97 percent across Central Business Districts (CBDs) in the first quarter of 2013 “as it shows no signs of slowing down”.
CBRE vice chairman and global corporate services chief Joey Radovan said that “Makati City remains the country’s top CBD as it offers the highest quality Grade A and premium office buildings available in the market”.
Makati largely gained from the expansion of multinational corporations, with the CBD’s vacancy rating down to 5.07 percent in the first quarter from 5.45 percent recorded in the previous quarter.
Radovan said vacancy rates in Bonifacio Global City (BGC), Ortigas, Alabang, and Quezon City fell below 5 percent in the first quarter, benefiting from the tightening of supply and increasing rates in Makati CBD.
Metro Manila is among the areas where rental growth is accelerating, alongside Bangkok, Taipei, Tokyo, according to industry data. Occupancy rate in Metro Manila has consistently been above 90% since 2011.
CBRE estimates office space take up for 2013 in Metro Manila is at 450,000 sqm and nationwide at 600,000 sqm.
CBRE CEO Rick Santos in the same briefing attributed high investor confidence that placed the Philippines office rental vacancy levels to hover at an all-time low of 3.21 percent in Metro Manila.
“Amid continuing credit upgrades, cost-effective rental rates, the influx of expanding multinationals and manufacturers, and expatriates moving from renting to buying properties, we see a very encouraging outlook for the Philippine property sector, Santos said.
Radovan further explained that the combination of the effect of anti-speculation taxes, tighter rules, and sky-high property costs in saturated markets such as China, Hong Kong and Singapore, more property investments are expected to boost Philippine developers”.
Emerging business districts in Metro Manila, such as Bonifacio Global City in Taguig, benefitted from the tightening of supply and increasing rates in Makati CBD.
The growth of BPO full-time employees (FTE) was highest in BGC, Muntinlupa and Quezon City. FTE growth in the Taguig, particularly in the BGC, grew by 13% in 2012. It surpassed Muntinlupa in 2010 and Mandaluyong in 2011.
When it comes to total FTEs, Makati still leads all cities at 86,757. Quezon City is close behind with 51,518 FTEs, a number largely boosted by BPO locators in Eastwood, UP-Ayala Technohub, Eton Centris and Eton Cyberpod Corinthian.
http://manilastandardtoday.com/2013/06/08/ph-office-rent-market-hottest-in-asia/
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Philippines Real Estate Boom Expected To Continue In 2013
Wednesday 29 May 2013 – theexpat.com
If there is one industry that posted a stellar performance in 2012, it is real estate.
Players are optimistic that 2013 will be a banner year for the industry as well.
Cebu Holdings Inc. president Francis Monera said the real estate industry recorded a revenue growth rate of 18.8 percent in the third quarter in 2012, making it the fastest growing of all industries.
Jose Soberano III, chief executive officer of Cebu Landmasters Inc, said the real estate industry experienced “unprecedented growth” in 2012 in terms of new projects being launched and completed, increases in booked sales and rental income due to higher volume turn-over, and upward price movements.
“This actually continued the growth pattern already seen in 2011 but with a more frenzied take-up rate,” he said.
Remittances sent home by Filipinos working abroad and the booming outsourcing industry were major factors behind the growth of the industry. The liquidity in the market propped by available credit and financing support from the banking sector also fueled real estate’s performance in 2012.
“At no time in our economic history was credit so readily available for medium and long-term housing needs that it opened an influx of buyers from the low to medium strata of our economy,” Soberano said.
In the residential front, Monera said strong and steady influx of remittances, complemented by a healthy investing environment and low interest rates have encouraged more Filipinos to buy property.
Cash remittances in…
Philippine Central Bank Ready To Start Cooling Measures
Wednesday 29 May 2013 – theexpat.com
The Philippine central bank is reviewing property loans data to determine whether cooling measures are needed to avert a bubble, Deputy Governor Nestor Espenilla said in an interview.
“Our source of concern is the rapid growth of credit,” Espenilla said in his office on April 24. “The central bank is very mindful of seeing the foundation of an asset bubble that can burst and create dislocations in the economy.”
Bangko Sentral ng Pilipinas, which yesterday cut the rate on its special deposit accounts for a third time this year, is monitoring the property market after bank loans and investments surged to a record, based on the most recent central bank data. Rising prices have spurred developers including Ayala Land Inc. to build more homes.
Property loans and investments rose 18.9 percent to a record 561.6 billion pesos ($13.6 billion) at the end of the first half of 2012, according to
Read more: http://theexpat.com/philippines/2013/05/06/philippine-central-bank-ready-to-start-cooling-measures/
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Philippines – No property ‘bubble’
PROPERTY MARKET growth in the Philippines has so far been healthy, Moody’s Investors Service said, with no reason to believe a bubble is forming.
Record-low interest rates have set the stage for a real estate boom but the Bangko Sentral ng Pilipinas (BSP) is keeping close watch to make sure these don’t allow speculation, noted Jean-Francois Tremblay, Moody’s Associate Managing Director for Financial Institutions.
“We see positively the BSP’s pro-active monitoring of the asset quality risks that could result from the current accommodative environment, including those related to real estate,” he said in an e-mail to BusinessWorld. – See more at: http://www.bworldonline.com/content.php?section=TopStory&title=No-property-%E2%80%98bubble%E2%80%99&id=70661#sthash.GkfNa0ib.dpuf
– See more at: http://www.bworldonline.com/content.php?section=TopStory&title=No-property-%E2%80%98bubble%E2%80%99&id=70661#sthash.GkfNa0ib.dpuf
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- PH gets rating upgrade from Japan agency (business.inquirer.net)
Boom Town Asia 