‘BGC safest place to invest,’ say experts

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ACCORDING to experts, Bonifacio Global City is the safest place to invest.

The movements happening in Bonifacio Global City, Taguig’s premier central business district, has captured the Philippine real estate industry’s imagination. In recent years, there has been a tectonic shift in the local and foreign business sectors’ choice of prime location. Property analysts say this may just be the beginning of even grander things for the former army and military camp.

 

A key event—the opening of the Philippine Stock Exchange at the BGC in 2016—may signal the heightened transfer of more prime international offices and headquarters to this satellite city.

 

David Leechiu, Jones Lang La Salle country head, told reporters in a Makati presscon March 5, “I have always said for the last six years that Bonifacio is the safest place to invest in real estate. Land prices there are 30 percent higher now than in Makati. The volume of transactions in Bonifacio is 10 times bigger than transactions in Makati. In fact, there hasn’t been an asset traded on Ayala Avenue for the last seven years.”

 

True-blue CBD

 

Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, told Inquirer Feb. 28, “With the P30-billion single-block development that will house the new trading floor of the Philippine Stock Exchange, the presence of a unified trading floor and the entry of more offshore and outsourcing country (O&O) headquarters, BGC will likely hold the distinction as a true-blue central business district.”

 

Julius Guevara, Colliers International’s associate director for valuation and advisory services as well as consultancy research head, told Inquirer Property late February that “with a steady stream of corporate headquarters and high-value business process outsourcing firms moving into Bonifacio and with the planned transfer of the PSE in the near future, high-end hotel developments will have a captive market of guests for their room and meeting space facilities.”

 

Leechiu quipped: “Will Makati be emptied out? I don’t think so. Because even if you add all the office space under construction in the next five years, the total office space in Bonifacio will only amount to about 1.1 million square meters. Makati is 3 million sq m, so even if everybody wanted to leave Makati, there won’t be any space (anywhere else).”

 

Lylah Fronda, JLL associate director for markets, said that “companies that have been to Ortigas and would want to upgrade in better CBDs would probably go to Makati, while companies in Makati will aspire for Bonifacio.”

 

Last piece of puzzle

 

Leechiu said many companies with offices in Makati and Ortigas would most likely also find a home in BGC, but what people have been waiting for are hotels.

 

“Hotels are going to dramatically change the landscape of Bonifacio. It will seal the deal, the last piece of the puzzle to really make BGC the new financial center of the Philippines,” Leechiu said.

 

Amid the announcement of upscale hotels opening soon, such as the Grand Hyatt Residences and Shangri-La Hotel, Soriano said last week that “BGC will get accustomed to more developments of this magnitude.”

 

Guevara added that another segment of the hospitality market—The Ascott—is also set to establish a presence in BGC.

 

“Local real estate powerhouse Ayala Land also opened the doors of its new Seda Hotel, and initial reviews from tourists and traveling businessmen have been glowing,” said Guevara.

 

Rick Santos, CBRE chair and founder, told Inquirer last week: “We have observed an uptrend in luxury and branded residences in the country. The presence of branded residences is a sign of renewed optimism and strength of the Philippine real estate market.”

 

Soriano said: “Despite its imperfections, BGC and its luxurious mixed-use and integrated hotel and residential complexes has set the bar in CBD living as it brings together towering and green offices, a row of embassies, international schools and modern conveniences—all accessible and with seamless connection.”

 

Head to head

 

Guevara added, “It will actually be interesting to see these different hotel brands compete head to head in BGC in the next few years. At the end of the day, hotel guests and luxury condo investors will benefit from the presence of these hotel giants as they get a taste of world-class hospitality in a bustling, dynamic new city center.”

 

Soriano said that aside from The Ascott Group of Singapore (the hotel group behind the former Oakwood Premier Hotel located at the Ayala Center, Makati), the Shimao Group, a developer owned by China’s fifth-richest man, Xu Rongmao, will put up a hotel at BGC.

 

Soriano added that there are also other hotel groups which are “silently” exploring the BGC area.

 

 

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  • haybuhay69

    yang mga experts na yan hindi siguro nagddrive papuntang BGC.

    • WeAry_Bat

       Hehehe…Yup, despite an impressive site, to reiterate, there are only three major ways to get there:
      narrow McKinley and Gate 3,
      one-sided C5 (the nearest U-Turn will drive one crazy with the waiting traffic underneath)
      and the area of Buendia-Kalayaan flyover which brings one to a standstill traffic around the one of the rarest drive-throughs in the city which is from JollyC. 

      The other drive-through being the JollyC in Libis which has disgustingly poor service.  A friend of mine narrated how the cashier offered a peach bumpkin pie but at the takeout window, he was told it be a wait for 15 mins, so he left without it.  On the next drive, the coffee cover was loose so hot kape splashed down his pants around the jewels.  He shouted P.I. to the crew, probably his first in five years.  He said it was also a pity they have chicken-sht guards who don’t keep the exit open from the jeepneys.

      Going back, GBC has a few years left, maybe 3, to solve the problem of isolation suffered by Ortigas (box traffic) and Alabang (toll fees).  There are still a number of ways to get to Makati like the side streets.

      • iriga1_city1_boy1

        To WeAry_Bat:
          That Mckinley Street,from the corner of 5th passing through Forbes,to the connection on  EDSA is a mess and congested during peak traffic time.The administrators of BGC need to fix that problem or they will have a pie smack in their face later on. 5 years ago the same place was smooth as silk when traffic is concerned .Now, it’s like a  funnel.It took me a 20 minute wait to exit to EDSA from those building locations(ESSENSA,FAIRWAYS,SEIBU).
        Their might be  time to fix the problem  before some more tall buildings sprout and more people live and work there.Or is a race against time.Do something about it,BGC!!

      • WeAry_Bat

        Very much true. Of the 3 million sq m of Makati, only around 1 million sq m is highly productive. GBC has 1 million of planned, purely productive area. When all of the soaring high-rise buildings are completed, it will have a tenancy, population and productive density 4 times of Makati.

        Just this morning I had driven there, I noticed there are more people, more traffic. They must place flyovers between the corner entries of GBC as soon as they can because it will be much more difficult with the rising people+vehicular traffic.

  • PinoyDude

    For the time being, a rapid bus system is the solution to interconnect Makati, BGC, Ortigas going to NAIA and back. This is cheaper and can be implemented only in a matter of months, as opposed to a monorail which will require a hefty investment.

    Go to wikipedia or search for rapid bus systems implemented around the world.

    BGC has an acceptable bus transport within the business district but this can be improved by implementing a tap card instead of paper tickets to cut down the long queues of passenger in their ticket office.

  • DIGOYBULOY

    we should not give this Shimao Group a chance to benefit from investing in BGC!  No to China!  No to Shimao Group in BGC!  Or anywhere in the Philppines!

  • http://twitter.com/PINOYPOWER100 JUAN DELA CRUZ

    Go Philippines!

  • kwangkwang

    play safe investments = play safe earnings

  • upupperclassman

    Do not believe these foreign realtors operating in Philippines. They are just promoting their selfish business interests. As it is now, BGC is already choking. When all the buildings will be up and the supporting services such as entertainments and hotels will all be operating, BGC will further be choked beyond breathing point. The streets are too narrow, main avenues do not have straight lanes and traffic in and out of Makati , in and out of C-5 to other cities and in and out to South Expressway are already too congested. BGC is another bad planning like Makati with a much smaller area and far more ambitious aspiration. When all the public transport will come in to handle the requirement, the place will be badly polluted at a stand still. Should BGC adopt the idiotic traffic system implemented at Legaspi and Salcedo Villages with numerous traffic lights every 10 steps, then it will be more chaotic than Makati CBD because of its smaller area.

  • G.J. Oyzon Jr

    That is a great suggestion. I love to see the day that our airport, business districts and leisure places will be connected by a monorail. With the construction of the monorail, we can now be at par with our neighboring countries.  Ease in traffic movement, less pollution and faster mobility will  be some of the benefits of the monorail.  Let us encourage our government leaders and business managers to unite together to construct this long awaited monorail.

  • rickysgreyes

    The central business districts (BGC, Makati and Ortigas)should be connected by rail or quick traffic less transit. Why not make a better and larger version of the UP Diliman monorail?

    • Sandy Bulet

      Love the idea…sana nga, sana..

    • http://pulse.yahoo.com/_O2RXGCIX4F2RUB5UAD5OWBPE3A dog

      actually there is a project that will connect NAIA, BGC, and MAKATI

      • bobybooboo

        Unfortunately, the so-called Makati-BGC-NAIA monorail plan is more like “maipilit lang” connection. The “Makati link” is MRT Guadalupe Station. Funny! They will connect the monorail to MRT just to effectively say it is connected to Makati City (via MRT Guadalupe) and Ayala Center (via Ayala Avenue Station). So if you’re coming from Ayala Center, you will need to first ride the overcrowded MRT, alight at MRT Guadalupe which is also overcrowded during rush hour before you could ride the monorail. Another problem: it is a monorail, so you will need to wait for the train coach. While waiting, you will be surprised that hundreds of other passengers are also waiting – thus another overcrowding.

        What DOTC needs to study is to connect Ortigas Center, Bonifacio Global City, and NAIA. We don’t need to connect Ayala Center to this loop. Makati CBD is already connected to NAIA via Skyway. It is already connected to BGC via Buendia-Katipuan flyover. It is already connected to Ortigas Avenue via EDSA and MRT.

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