PH property market seen to be hottest in Asia


The Philippine office sector is among the most dynamic in Asia and is growing at record levels, according to officials of CBRE Philippines.

The commercial real estate services firm said Metro Manila was leading the country’s office market, with occupancy rates hitting 97 percent across Central Business Districts (CBDs) in the first quarter of 2013.

In the office rent market, Manila is among the areas where rental growth is accelerating, alongside Bangkok, Taipei, Tokyo, according to industry data.

High investor confidence brought vacancy levels to hover at an all-time low of 3.21 percent in Metro Manila from the recorded 3.43 percent in the fourth quarter of 2012 amid economic growth, credit upgrades, cost-effective rental rates, the influx of expanding multinationals and manufacturers, and expatriates moving from renting to buying properties, said CBRE CEO Rick Santos in a briefing on Wednesday.

Combined with the effect of anti-speculation taxes, tighter rules, and sky-high property costs in saturated markets such as China, Hong Kong and Singapore, more property investments are expected to boost Philippine developers, said CBRE vice chairman and global corporate services chief Joey Radovan at the same briefing.

Radovan said that even with the challenge posed by a strong peso, the Philippines remained among the most cost-effective and attractive (with a young and talented labor force) destinations for BPOs and real estate investors in Asia.

Makati City remains the country’s top CBD as it offers the highest quality Grade A and premium office buildings available in the market, Radovan said. Makati largely gained from the expansion of multinational corporations, with the CBD’s vacancy rating down to 5.07 percent in the first quarter from 5.45 percent recorded in the previous quarter.

Declining office space vacancy put upward pressure on rent, pushing average asking lease rate up to P890.27 a square meter a month for the first quarter of 2013.

Radovan said vacancy rates in Bonifacio Global City (BGC), Ortigas, Alabang, and Quezon City fell below 5 percent in the first quarter, benefiting from the tightening of supply and increasing rates in Makati CBD.

CBRE research also showed that the growth of hiring for BPO full-time employees (FTE) was highest in BGC, Muntinlupa and Quezon City.

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  • Jonathan Filoteo

    I truly agree that Philippines is the hottest property market in Asia!

  • delpillar

    Real PROPERTY MARKET means building homes and factories in areas that do not consume or devour precious agricultural and forested areas. Maximizing space and RECLAMATION is ONE OF THE BEST OPTION.

    The whole Metropolitan/Urban Tokyo area (Includes Yokohama, Saitama and Chiba) has a population of 35 million people. (Metro Tokyo area is 13 million).

    But in spite of that about 30% of the whole Metro/Urban areas is forested and another 35% is still agricultural (food production). That means that the whole Metro/Urban Tokyo of 35 million people are still living in just 35% of the total land area

    The real property was so hot in Tokyo since the Meiji-Era (1869 to 1912) yet they controlled their migration to forested and agriculture areas as much as possible. Japanese reclaimed instead 250 square kilometers from Tokyo Bay.

    Today, about 2 million people are living in these reclaimed land. But with hundreds of thousands of companies and factories in these reclaimed land like TOKYO DISNEYLAND, HANEDA Airport, Citibank, Amazon etc etc etc, the daytime (weekday) population reach 10 million. 250 Square Km of reclaimed land save a lot of trees and produce farm products.

    Above all, human waste and human-generated waste must be sustainable in spite of the fact that real-property market are making the population density per square kilometer denser and denser.

  • bogli_anakdami

    i bought a bank-owned property… i paid the amount negotiated… i waited for the title to be released… lo and behold… the flip magnanakaws told me that i still owe ‘sang tambaks na milyon for the property… charges kabi-kabila that weren’t on the original sale documents…. kahit ang kontrata eh negotiated by a real estate lawyer, gusto pa rin akong iyutin, di ba? yun lang… ay sus ginoo… kaya dito sa flipland eh, you gotta have a bigger dick para lamang sa iyutan, di ba? buti na lang at i’m well built… yun lang…

  • bogli_anakdami

    yung lote kong binili over five years ago, eh, di wala pang titulo… the company stated that “veterans” hadn’t release the paperwork… the land developer/builder is not a fly-by-nighter. akala ko eh kahit may established biznez eh trusted… na-iyot ako doon ah… ay sus ginoo… mga flips talaga eh puro mga magnanakaws, di ba? yun lang…

    • ThudOthwacker

      LOL Blame yourself for not doing the proper background checking.

    • eight_log

      As the title goes … talagang HOT ang properties … just wait awhile and marami ang masusunog!!!!!

  • CmdrAdobo

    hottest with slums in the neighbor. :)

  • go88

    Real estate is vastly overpriced in our country …. those condos looks nice on paper but most are built using poor materials, with safety issues and poor customer service. For the price of one of the ‘upper-class’ condo in Manila you can buy a house in the US or Europe. IMHO if you have the means better have a house built, you can choose the materials, check the building process and it will be cheaper in the end.

    • tyurl

      Agree… A very steep price correction is lurking

  • Iggy Ramirez

    Two Serendra is the hottest location to be. With its imminent collapse due to the explosion ripping part of the structure, it will be like the Eiffel tower or the World Trade Center in New York, which people will anticipate and watch as they fall. Where else could you find a place to be seen more? Of course, in a more dangerous one. Headlines anyone?

    With cost per square meter plummeting from a ridiculously expensive P400,000 to an incredible bargain of just only P400 per square meter, you will never find a property as hot as this. Only that you have to sign a waiver absolving Ayala Land of any and all claims in case the widening crack from the 6th floor to the basement gave way.

    So, what are you waiting for? Would you dare to be the person who braves living in a tower that is about to crumble? Who knows, you might find yourself in some reality TV show.

  • ThudOthwacker

    Strengthen our zoning law please. Stop the conversion of farm lands to malls and golf courses. And our mountains to subdivisions like what Filinvest are doing now with San Mateo, Rizal.

    • upupperclassman

      One day you will see the houses on top of the mountain cascading down.

  • upupperclassman

    At the rate these foreign brokers are pumping hot air into our real property market, it will explode like Serendra 2.

    • kismaytami

      Only 1 spark is needed.

  • NegaStarr

    Hottest property this month: Two Serendra of Ayala Land

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