Property developers shore up land bank

Share

Aya Lowe

www.rappler.com

25 January 2013

http://www.rappler.com/business/20428-manila-developers-need-to-shore-up-land-bank-cbre

MANILA, Philippines – As demand for real estate assets continues to grow and developments flourish, Manila developers will soon face a dwindling supply of land.

“Some of the developers’ problems are not [about] projects to launch but sites to develop. We will need more land to develop in Metro Manila for these new projects,” said Victor Ascuncion, CBRE Philippines executive director, speaking at a press briefing on Wednesday, January 23.

Rick Santos, CBRE Philippines founder, echoed this sentiment, saying “Some of the large players have large land banks, but for some of the less established players, it’s crucial they enhance their land bank as you have a competitive advantage.”

According to Santos, a lot of developers are looking north of Manila, toward the Clark area, as well as down south, toward Metro Cebu, Metro Davao and Cagayan De Oro.

Santos said there is now a trend of developers building on reclaimed land in Manila and Cebu. “The reclaimed land with the advent of gaming that land is getting picked up. Reclaimed land in Cebu is getting picked up,” he said.

This comes as the Philippine residential real estate industry experiences a “democratization” leading to an increase in demand for affordable units in high-rise residential condominiums.

“The Philippines is experiencing democratization in the housing sector—from a nation of renters to owners—based on low interest rates and financing schemes,” said Santos.

However, infrastructure connecting new developments is also an issue. “A lot of it comes down to infrastructure. There is still a lot of land but it’s just a matter of having the infrastructure to get there,” said Santos.

Orion Support Incorporated (OSI)

Dear Rick,

Following up from my initial request to you for support in finding a new office location for our company, Orion Support Incorporated.   Well, we moved in to the LTA Building on Perea Street, fifty meters or so from Paseo de Roxas this weekend, only a 4 minute walk to AmCham and under excellent terms.

While I think you assigned both Morgan Mcgilvray and Sherdil Rana to support our original request; as you know, Morgan was very tied up with his wife giving birth during the period we identified this location and negotiated with the landlord, Mr. Mike Arroyo. Yes, the former First Gentleman. But in my short interaction with Morgan, I can see that he is a solid, young professional.

With regards to Sherdil, I want to tell you that with 35+ years of interviewing hundreds and hundreds of individuals, I was impressed with his professionalism, focused support and “can-do” attitude  from the point of identifying our potential office space, and through the negotiation stages prior to the signing of our 6 year contract.  I was impressed with his considered opinions, insightfulness with regards to Philippine business culture and his sage advice related to our strategy in the negotiation process.  Sherdil was able to negotiate a rental rate per square meter about 150 – 200 pesos less than the going rate in this area, and with only a 7% increase after 24 months. Add to that, he secured for us three parking slots at no additional cost, two months security deposit versus the standard three, and two months advance rent to be applied to the front end of our contract versus the back end as is the case in most rental contracts. And, he got the landlord to repaint the entire office with three coats of mildew resistant paint at their expense.   But best of all, we were given a 6 year lease, with only having to give two months notice and forfeit only our two month security deposit to move out anytime with no additional penalty!

JOIN THE CBRE COMMUNITY

Receive our latest industry research, news and updates by signing up.

Want to Unsubscribe?

Contact

Manila Office

10F Ayala Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
1126 Philippines

T +632 752 2580 | F +632 752 2571
ricksantosteam@cbre.com.ph

Cebu Office

Unit 1505, 15th Floor, Ayala Life - FGU Center
Mindanao Avenue,Corner Biliran Road
Cebu Business Park, Cebu City
6000 Philippines

T +032 318 0070 | +032 236 0462
ricksantosteam@cbre.com.ph

Contact Us | Sitemap | Disclaimer/Terms of Use | Privacy Policy | © 2012 CBRE Philippines, Inc. All rights reserved: Part of the CBRE Affiliate Network

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

We would like to hear from you on how we can serve you better. Please fill out the form below and we will get back to you as soon as we can.

Name

Email Address

Subject

Message

Captcha

CAPTCHA code

Share