On the rise

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Riding the momentum of its stellar performance last year, the country’s property sector is projected to continue to soar despite the forecasted deceleration of real estate in several Asian countries.

The growth is still ascribed by some to the 7.2% growth that the country posted last year, which enabled more Filipinos to afford the purchase of properties.

“Demand for affordable housing will continue to outpace supply. Liquidity in the country remains high. As a result, domestic savings have also gone up,” said PRO­FRIENDS President Jocelyn Guzman in a previous interview with Business World. “Filipino families are now, more than ever, ready to commit to owning a home and have the means to do so,” she said.

Based on a recent survey of official house price statistics for 2013 conducted by research Web site Global Property Guide, the global house price boom con­tinued to accelerate during 2013, led by the US and Asia­ Pacific.

The survey revealed that the Asian housing markets remain upbeat. “The Philippines is the fourth best performer in our global house price survey. The average price of three ­bedroom condo­minium units in Makati CBD surged by 10.56% during 2013, after annual increas­es of 4.85% in 2012 and 2% in 2011, and declines of 0.43% in 2010, 5.87% in 2009 and 1.65% in 2008. Quarter on quarter, house prices rose by 1% in Q4 2013,” the report said.

According to the Bangko Sentral ng Pilipinas: “Demand remains strong, as indicated by soaring real estate loans. In September 2013, the volume of real estate loans rose by 38.5% year on year to P776.65 billion (US$17.43 billion).”

Also bolstering the sector’s rosy outlook is the opening of integrated, mixed­ use centers in areas outside Metro Manila. The construction of these estab­lishments will contribute to the influx of business process outsourcing (BPO) firms and other foreign investors. This will drive already established compa­nies to remain in the country and even expand, according to commercial real estate consultancy CBRE Philippines.

These lifestyle centers, like those in central business districts (CBDs), will house offices, restaurants, parks, and rec­reational and shopping establishments. The report added that vacancy rates in CBDs further went down to below 3%, and BPO revenues will reach $16.5 billion by yearend. These factors will also con­ tribute to the already increasing demand for quality office spaces, particularly those outside of the metropolis.

“We see expansionary growth in Metro Manila’s fringes and provinces such as Clark, Metro Cebu and Mactan,” said Rick Santos, chairman and founder of CBRE Philippines, at the Euromoney Conference held recently in Pasay City. “Developing these areas will provide more job opportunities for people within and in neighboring places.”

Both Clark and Metro Cebu are glob­ally ranked as among the top BPO areas, with the latter belonging to the 10 best outsourcing destinations. Competitive rates in the areas will also drive foreign investors to conduct business there, ac­cording to CBRE’s statement.

Meanwhile, Ms. Guzman said that she is optimistic that the economic condi­ tions would remain favorable to the prop­erty sector. “Even amid the global and re­ gional developments in the past months, the country has proven to be resilient as a result of good economic fundamentals that were instituted over the years,” she said.

By: Don Joseph J. Dejaresco, Business World, March 31, 2014

Adchemy

Yesterday , we concluded the handover of our unit located on the 27/F of Philamlife Tower. It was a relief that we finally have access and can proceed with our minor refurbishments. Finally an official announcement can be given to our Engineers who really deserve a better facility that they can call their own.

Much of this good news and feelings of self-achievements of getting this unit would not be possible without your help and that of you most gallant employees, Mr. Francis Bautista and Mr. Philipp Llave.

Initially our head office in San Francisco was not in favor to get our own unit and moving out of Regus because of the initial capital outlay it represented. Eventually we were granted approval to start the search on the condition that it would be a tail-end of an existing lease, with no capital outlay needed for fit-out, cabling and furniture on our part. Knowing what the real estate market in the Philippines is like and our prior experience in finding office space, the situation proved very challenging, if not frustrating for us.

But with their professionalism, persistence and unique knowledge of the market, Francis and Philipp were able to find us a unit that fit the specifications of our head and negotiate a deal that was beneficial to us. To sweeten the deal further, the space they provided is just a few floors away from our existing office thus making it an easier transition for us.

Bottom line, what I am trying to say is “THANK YOU” to both most especially to Francis who’s been very instrumental on all my needs in terms of office spaces.

Keep up the good work guys!

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