Supply frenzy shifts to more affordable condosBy Tessa R. Salazar
Philippine Daily Inquirer
The residential condominium supply in Metro Manila has been shifting to the P80,000 to P100,000 price range, as the focus on projects priced above P100,000 has lessened.
A comparison chart of the future supply of the Metro Manila residential market was shown during a June 20 CB Richard Ellis Philippines’ press briefing at the Makati Shangrila Hotel in Makati.
The comparison showed that the number of units priced from P80,000 to P100,000/square meter increased from 44,533 units as of end of 2011 to an additional 60,804 as of June 15. This is in sharp contrast to units priced above P100,000/sq m, which at the end of 2011 numbered 38,303 units and by June 15 only 24,929 units were added.
At the other end, the supply of upcoming residential condo units priced between P40,000 and P80,000/sq m also saw an increase, from 44,533 units as of end 2011 to an additional 52,655 units by June 15. The same trend is observed in the supply of condominium units priced P40,000 and below, as the 891 units as of end 2011 were added upon by 4,727 new units by June 15 this year.
CBRE Philippines analysts added that while high-end residential units would still be in demand, greater opportunities is seen for projects with units priced P80,000/sq m and below.
The residential industry continues to feed on strong demand from a broader market in 2012 and onward. The CBRE press statement said that bank lending rates are still on the downward trajectory, sustaining the liquidity in the financial system. Demand in the residential sector remains strong due to the increasing affordability of funds for housing acquisition.
Rick Santos, CBRE chair and CEO, said, “The Philippines is experiencing democratization in the housing sector—from a nation of renters to owners—based on low-interest rates and financing schemes.”
Santos also said the country is experiencing the “best real estate market in the Philippines in the last 20 years.”
Santos’ view is somehow corroborated by the frenzy in which property developers are building their projects—particularly the high-end, head-turning ones. One Uptown Residence, the first residential high-rise on offer at Uptown Bonifacio, is developer Megaworld Corp.’s 45-story tower that boasts a façade clad in glass and aluminum. Its cascading waterfalls on the ground level facing the corner of 36th street.
The new place to be
Megaworld SVP for marketing and project head Noli Hernandez said, “When you go downtown in New York, it will eventually lead you to the riches of Wall Street. But when you’re here at Bonifacio Global City, Uptown Bonifacio will be the new place to be in the next few years. It’s where you’ll experience our proven live-work-play-learn mantra.”
The Trump Tower Manila was officially launched on June 26 with Donald Trump Jr. and Eric Trump in attendance. The US$150-million, 56-story residential development is owned and developed by Century City Development Corp, a member of Century Properties Group Inc., with the brand name and mark under license from New York-based Trump. The completed units would be delivered in 2016.
Other Metro Manila condominium updates, as enumerated by the February 2012 Philippine property market monitor of Jones Lang LaSalle Leechiu, include:
• Developer Century Properties doubling its sales of residential units, from around P8 billion worth of presold units in 2010 to almost P19 billion in 2011. Century Properties accounts this sales growth to resilient demand from overseas Filipinos, who contributed to around 67 percent of the total.
• Eton Properties Philippines Inc. scheduled to turn over to owners 2,351 units in five residential condominium projects in 2012. These projects are Eton Residences Greenbelt, Eton Parkview Greenbelt and Belton Place in Makati City, the West Tower of One Archers Place in Manila, and the Eton Emerald Lofts within the Ortigas Center in Pasig City.
• Federal Land’s planned construction of a second and third residential tower in Bonifacio Global City. One Bloomberg Place and One Liberty Place would rise in the northern portion of BGC. Both 50 stories tall, with 896 units each. The developer’s first tower in BGC, Parkwest Tower, was launched in mid-2011.
• Shang Properties Inc. to spend around P37.5 billion on upscale projects that include condominiums, a mall and a hotel, located in different business districts.
• One Shangri-La Place allotting P12.5 billion on its residential condo project. The project features two residential towers on top of the six-level Shangri-La mall expansion. Other upcoming projects are the Shangri-La Hotel at the Fort in BGC and the Shang Salcedo Place condominium in Makati CBD.
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