Rising demand for residential space in CBDs
The demand for residential condominium units in Metro Manila’s central business districts (CBDs) is undoubtedly on the rise.
According to Jones Lang LaSalle’s Philippine Property Digest for the first quarter of the year, about 125,000 residential condominium units are expected to be added to the total residential market stock of Metro Manila from the second quarter of 2017 to 2021.
Upcoming developments are expected to be concentrated in the CBDs of Makati, Ortigas, Bonifacio Global City, Quezon City, and the Manila Bay area, the report disclosed.
CBDs, as commercial and business centers, are home to major banks, multinational corporations, shopping centers, hotels, office spaces and high-rise condominiums.
The major CBDs in Metro Manila are located in Makati, Ortigas and Bonifacio Global City, while other rising business districts include the Bay City, Mckinley Hill in Taguig City, Eastwood City, Araneta Center, Eton Centris, and UP-Ayala Technohub in Quezon City.
According to the same report, about 3,100 condominium units were completed from January to March. The figures put the stock of mid-range to high-end residential condominium units at 260,600 as of March.
Of the condominium developments completed, more than half or 57 percent were located in Quezon City, while 16 percent were built in BGC, 14 percent were in Makati, and the remaining 13 percent were in Ortigas.
Some of the completed units were from major property developments such as Avida Towers Vita Tower 1 and Avida Towers Astrea Tower 1, both in Quezon City; Greenbelt Hamilton 1 in Makati; Shangri-La at the Fort-Horizon Homes in BGC, and Viridian in Ortigas.
Condominiums in prime locations have reportedly seen increased market sales, as these are the most reasonably priced residential units in the market.
Property analysts have noted that living in condominiums in CBDs has increasingly become a more practical and convenient choice particularly for the city workers such as company executives and business process outsourcing (BPO) employees as it allows them to live closer to their workplace.
More specifically, it generates savings from lower transportation expenses and spares them from the long commute, due to traffic jams and lack of efficient mass transportation system in Metro Manila.
In a previous Inquirer article, industry executive Liezel Tuason Magpoc pointed out that a strong demand for residential condominiums as an investment will continue because concentration of businesses is still in Metro Manila.
This continued growth in demand for residential property is primarily driven by the BPO industry and remittances from overseas Filipino workers, according to the Jones Lang LaSalle report.
Average rents in Makati CBD and BGC remain the highest in Metro Manila, with rents priced at P630 to P1,000 per sqm per month for mid-range units, and from P720 to P1,790 per sqm per month for high-end units.
Sources: Jones Lang LaSalle, Inquirer Archives
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