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.

Regent Parkway

To all the administrative, security and management personnel at Regent Parkway:

I’d like to take this opportunity to THANK YOU sincerely for all your hard work.Every day we come home to clean, well maintained and safe building, and it is thanks to the contributions of each and every one of you.

I’ve had the pleasure to be a tenant of this building for the last couple of years, and I have never, ever had a single problem, not ever one. Everything is managed with the utter most professionalism, and many times we take that for granted. I know that it doesn’t happen by magic, but because of the effort from each and every one of you.

Unfortunately, I am being relocated to my home country, reason for which I will stop living here by the end of the month. Believe me, if it was up to me, I would never leave; since my stay here has been very happy and fulfilling.

I’ve had the opportunity to live in many places, but the upkeep and operation in this building, together with the warmth from every member of the personnel, are unparalleled.

I didn’t want to leave without sharing with you my appreciation for all you have done for me; your friendly smiles, the cheering in the early mornings when I drag myself up for a run, making me feel safe and taken care of, but mostly, for taking an otherwise ordinary job and making something extraordinary out of it.

I wish you all the best and thanks again.

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