Quantcast
Latest Stories

Peaceful elections, good credit ratings raise property performance

By

The first half half of the year will be over in a month. Following a generally orderly May 13 national elections, favorable international credit ratings and property experts’ assessments have shown the property sector is flourishing.

Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, said that, “with the successive Fitch and Standard & Poor’s successive credit ratings upgrade from BB+ to BBB-, PSEi hitting new peaks at 7,400, the 6- to 6.5-percent GDP 2013 forecast, renewed investor confidence due to the government’s reform agenda and the generally peaceful national and local election this week, the property sector is well on its way to outperforming last year’s banner performance, all this buoyed by a newfound optimism and rosy macro fundamentals in this 3-year-old administration despite an uncertain global economy.”

Investments

Rick Santos, CBRE chair and founder, said “the confidence in the Philippines from an investment standpoint is very high, especially in the light of the recent credit upgrades from Fitch and S&P.”

According to Santos, this has been a result of strong macro-economic fundamentals combined with an amazing confluence of events surrounding:

• Renewed confidence in the country’s leadership;

• Strong macro-economic fundamentals;

• A world-class cabinet;

• Record low interest rates;

• The outsourcing and business process outsourcing (BPO) sector creating 4.5 million square feet of new office takeup a year;

• The gaming sector taking off like Macau and Singapore;

• Record tourist arrivals;

• An influx of budget airlines;

• Remittances up, and a strengthening currency;

• Huge interest in the mining sector;

• US and Philippine relations back on track; and

• The Philippine stock market at an all-time high record level.

“The Philippine real estate market will experience sustained growth and opportunities in the office, residential, leisure and manufacturing sectors,” Santos added.

Growth trends

Claro dG. Cordero Jr., Jones Lang LaSalle head for research, consulting and valuation, said that “the significant sources of demand for the various property subsectors have shown significant growth trends in the first quarter of the year, primarily the level of remittances from the overseas Filipinos and the number of visitor arrivals. We can expect the property sector to register higher levels of demand due to this growth.”

Cordero said that in the first quarter of 2013, rentals and capital values in the office and residential sectors still managed to post positive growth.

Julius Guevara, Colliers International advisory services associate director and consultancy and research head, said: “The residential condominium market in Metro Manila in 2012 performed higher with sales about 5 percent more than the previous year’s levels. We are currently analyzing our market data for the 1st quarter of 2013 and it seems that the trend is continuous, so we see that for the rest of the year the preselling condo market will continue to grow at stable levels.”


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , credit ratings , Elections , Investments , property , Real Estate



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • South Korea president shouted down by distraught parents
  • Classmates celebrating 60th birthday among missing in ferry sinking
  • Sports

  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Jones, Godard, Cronenberg in competition at Cannes
  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Business

  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • Technology

  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • DFA: 2 Filipinos survive Korean ferry disaster
  • PH asks airline passengers to check for MERS
  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • Marketplace