Lamudi Reveals What’s Shaping Philippine Real Estate for 2018
Real estate remains as one of the best performing industries that drive the Philippine economy. Judging on the numerous project launches and sustained high earnings of property developers, it is obvious that the sector is in the upswing and is expected to stay there in the foreseeable future. Best of all, each of its different categories such as residential, commercial and office space segments are contributing to the progress of the sector.
Mixed-Used Complexes: A Stable Trend
The surge of all segments can be owed to the fact that most of the completed or recently launched developments are mixed-used projects that offer a complete lifestyle. Inclusive with all the necessities and ingredients for comfortable living such as areas to live, work, and play, mixed-used developments appeal to most investors and buyers. This is evident as a number of townships are strategically developed not only within Metro Manila but also to key areas around the country.
Megaworld Corp., one of the pioneers in township development, believes that through these “mini-cities” we can lessen our carbon footprint. “Imagine living in a walkable community where you don’t need fuel to get to work or do your shopping; we are not just making ourselves healthy but we are also saving the environment,” shared Jericho Go, Megaworld’s First Vice-President for Business Development and Leasing.
The City of Manila, on the other hand, looks bent on joining the land reclamation bandwagon with Solar City, a proposed development to rise soon on Manila Bay. In an article published in the Manila Times, “this 148-hectare project will be designed to be green, self-sustaining, and innovative…and it will be the first of its kind in using renewable energy from solar, wind, and biomass sources.”
Other mixed-use complexes soon to rise in other parts of Metro Manila include Arca South in Taguig, Quezon City’s Triangle Park, and Aseana City in Parañaque, among others.
Demand for Office Space Deemed to Increase
Apart from the emergence of mixed-used complexes, real estate’s good performance can also be attributed to investors’ positive sentiment.
According to the second quarter report of Colliers International Philippines, the demand for business process outsourcing (BPO) offices remains high, with the offshore gaming industry particularly sustaining the market. For Metro Manila alone, net take-up of office spaces totaled 190,000 square meters in the second quarter of 2017. The Manila Bay Area and Fort Bonifacio are the top locations that posted strong demand, according to the report.
JLL, on the other hand, observed positive outlook for the office segment in their Philippine Property Market Monitor released in July of 2017.
The global real estate consulting firm also cited emerging provincial locations, which include Naga in Camarines Sur and Puerto Princesa in Palawan. Sitel recently inaugurated its first O&O hub in Puerto Princesa, which is expected to generate 1,000 jobs in the Palawan capital. Sitel also has sites in Baguio and Tarlac.
Moreover, Robinsons Land recently launched Robinsons Cybergate Naga, its newest office development in the Bicol Region.
Affordable and Mid-income Residential Projects Take Center Stage
Developments located in the fringe areas of major business districts are also sustaining the growth of the condo market, according to the Q2 2017 report of Colliers.
Growing demand for affordable and mid-income projects has prompted property developers to expand outside the traditional business districts. This trend shows that while taking advantage of the convenience of being near to CBDs, homebuyers are likewise empowered to choose competitively priced developments. Furthermore, the availability of developable land and ongoing transport infrastructure projects make these areas more attractive.
Source: World’s Executive Digest