Makati sustains impeccable luster
There is no doubt that the City of Makati has not lost its luster. Despite the rise of new business districts and residential communities, many investors, businesses and residents are still drawn to the country’s prime financial hub.
There are a number of reasons why Makati remains a much coveted address, and why it continues to command a premium, and bragging rights even, for those fortunate enough to find home in this district.
For some, a Makati address spells accessibility and convenience, of being right smack in the middle of the city hustle, of being near modern offices that house some of the biggest local firms and multinational companies, the latest commercial, cultural and entertainment destinations, top schools, hospitals as well as key institutions.
Others meanwhile may see the city as a hotbed of lucrative opportunities, whether for one seeking employment or one hoping to expand the business.
Makati is likewise considered an “aspirational” address by many as it is currently home to some of the most posh, exclusive villages and upscale residential condominiums.
Prof. Enrique Soriano, executive director at Wong+Bernstein Advisory Group, and former Ateneo program director for real estate, acknowledges that Makati indeed remains a preferred residential destination.
According to Soriano, there are many benefits to living within Makati City. One of the primary reasons was easy access to employment. The labor force spends more time at work and so being close to the office would mean less time traveling, effectively translating to an enhanced quality of life, he said.
Soriano also cited the decades-old partnership between major developers and the local governments in curving traffic congestion; the strict enforcement of security, particularly within the CBD; proximity to world-class hotels, sports clubs, leisure and hospital facilities; as well as several MBA campuses such as the Asian Institute of Management, Ateneo Graduate School of Business and De La Salle University, which all offer formal education that can boost one’s executive career.
Also drawing individuals and families to Makati are the views, open spaces and lots of tree cover; the wide array of coffee shops and restaurants scattered across the city; as well as the weekend neighborhood markets that have since attracted local and foreign tourists.
“Despite its imperfections, Makati continues to retain its old world charm. Before moving to Alabang, I lived for 20 years in Makati. What made me stay? It all boils down to real advantages that I mentioned that fuels growth and increases land value,” Soriano explained.
“It is unfortunate though that some CBDs in Metro Manila have declined because of sheer neglect. Other CBDs will also find it quite a challenge to replicate the liveability factor that Makati offers. It is one primary driver that makes Makati retain its authenticity and character,” he further noted.
Today, Makati continues to generate a strong demand from a mix of local professionals, end-users, as well as investors, prompting many property firms to pursue the development of more vertical communities.
As of end 2018, residential supply within the Makati CBD alone stood at 27,020 units, while Rockwell Center had 4,510 units, data from Colliers International Philippines showed.
Much to the benefit of the investors, Makati also continues to command one of the highest average lease rates for prime three-bedroom units. In the fourth quarter of last year, lease rates within Makati CBD ranged anywhere from P550 per sqm to as high as P1,098 per sqm, Colliers data revealed.
Capital values continue to increase as well, with average prices of prime three-bedroom units in the secondary market for Makati ranging from P131,000 per sqm to P329,000 per sqm for the same period.
Indeed, the City of Makati remains a much coveted premium address that, for sure, will not lose its luster any time soon.
