Land in Metro gets scarce; prices soar

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by IRMA ISIP

Malaya Business Insight

November 2012

http://www.malaya.com.ph/index.php/business/business-news/18109-land-in-metro-gets-scarce-prices-soar

Old buildings and  factory sites in Metro Manila are giving way to office spaces and high-rise apartments as land gets more scarce.

Victor Asuncion, head of research of property consultancy CBRE said Metro Manila is running out of space for property developers, fuelling redevelopments in certain areas.

Asuncion said the trend has pushed prices in Fort Bonifacio, up 25 to 30 percent this year making it too expensive.”

“The problem faced by developers is that they are running out of land to develop (in Metro Manila,” Asuncion said.

Developers now go to areas surrounding business districts. Asuncion said for example that redevelopment in Mandaluyong is extensive, pulling down factories in favor of residential and commercial condos.

Same thing is happening in Makati, Asuncion said, where medium-rise  buildings are taken out and rebuilt as high rises. .

“This is because those buildings were built for traditional offices and not for BPOs,” Asuncion added.

Some of the industrial areas are converted around the Metro Manila environs and this would continue, according to Asuncion.

“They determine the highest investors of the property and they go for it. In Makati, most of the highest investors are residential condos catering to BPOs,” Asuncion said.

He said that in Makati, in Malugay area, Avida and Linear condominiums are built in spaces used to be occupied by  light industry manufacturing and warehouses.

Asuncion said the land values there have jumped to  P60,000 to P100,000  per square meter .

At this price, Asuncsion said, these areas are just too expensive for an industrial space.,

“You have to pay commercial real property tax for something  that is underutilized. So you give way  to the highest investor which is a condo or an office or a mall where they can realize the true value of the property,” he said.

Teletech

MR. FREDRICK SANTOS
Chairman
CB Richard Ellis Philippines, Inc.
10th Floor, Ayala Tower One & Exchange Plaza
Ayala Avenue, Makati City 1226

Dear Mr. Santos,

We would like to thank CBRE particularly your Emergency Team for the support and Assistance that they have provided to our sites in Luzon (Pampanga, Cainta, Ecoplaza, Roxas and Sta. Rosa) that rolled our Emergency Response Program (ERP) Drills.

As a result of your team’s active support and participation, Teletech’s ERP program has been further strengthened and we were able to get good words from our visiting Global Facilities Director, Christopher McLuhan when he witnessed the Sta. Rosa DC Facilities Team have done to roll out such program.

Your onsite and head support team’s skills and support mean a lot to us in attaining successful drill roll outs and will ensure that future incidents and challenges will be properly dealt with because of the solid ERP and DRP programs that we have established.

Again, thank you very much and more power to your company.

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