Fast rising prices of basic goods and services have understandably dampened the buying appetite of many Filipinos who are hurting from the waning purchasing power of their hard-earned peso.
Such decline in investor appetite, however, is apparently not being seen in the resilient luxury condominium sector.
It has so far defied the economic slowdown and continues to see steady demand brought about the scarcity of top quality projects that meet the standards of discerning buyers and expectations that the economy will rebound and property prices along with it.
This is evident especially in the robust demand for units at The Estate Makati, a luxury development project of the SM Group’s SM Development Corp. and Federal Land of the Ty-led conglomerate that will rise on the last undeveloped prime lot along Ayala Avenue and Apartment Ridge.
The Estate Makati is designed by Foster + Partners led by Lord Norman Foster, the same internationally acclaimed architectural firm behind such iconic structures as HSBC Building in Hong Kong, The Gherkin in London and Hearst Tower in New York.
Analysts point out that there is high capital appreciation for luxury developments in the Makati central business district and BGC in Taguig City, with the compound annual growth rate pegged at between two and 14 percent.
Indeed, prices of residential condominiums in Makati have continued to increase, holding up well against jitters over troubling economic and political developments here and abroad.
Makati’s status as the country’s top financial center is expected to be solidified by the completion of major infrastructure projects such as the Makati Intra-City Subway and Skytrain. These will further ease travel from residential areas to various locations for work and leisure.
This explains why those with means are lining up to buy The Estate Makati units, lest they lose out on the upside when the economy returns to the path of high growth.
—Tina Arceo-Dumlao
No bad blood, just bruised egos
The temperature has cooled somewhat in the row between the Securities and Exchange Commission (SEC) and some of the country’s top business group over a proposed hike in fees and charges.
In a hastily set meeting on Thursday, the SEC held a dialogue with a few of their representatives after they issued a statement strongly opposing the hikes, which apparently caught the commission off guard since they learned of their views first from members of the press.
There was no bad blood in the end but perhaps there were a few bruised egos.
SEC chair Emilio Aquino said some of the representative were also apologetic over the tone and manner of their joint statement and they were open to hearing the commission’s justification for the increase.
The two out of 12 business groups that attended the meeting were the Federation of Filipino-Chinese Chambers of Commerce & Industry and Philippine Chamber of Commerce and Industry.
The rest were apparently busy, but another meeting will be set with their principals to discuss the finer points of the issue, Aquino said.
—Miguel R. Camus
Can Panglao beat Boracay?
Boracay is no doubt a crown jewel of Philippine tourism, but in the foreseeable future, it may be dethroned by Panglao in Bohol as the country’s hottest island destination, according to Leechiu Property Consultants (LPC).
Panglao—which is served by an international airport that has capacity to operate day and night (other islands have sunset limitation)—has seen booming business activities this year, said LPC hotel, tourism and leisure director Alfred Lay. For instance, there’s the construction of JW Marriott, the first-ever five-star hotel to rise on the island, as well as the Alturas Group’s 50-hectare Panglao Shores, which will have six hotels and resorts.
Prior to the pandemic, Lay noted that Panglao had hit 1.5 million tourist arrivals, not too far from Boracay’s annual holiday-makers numbering 2 million.
“We feel that at some stage within the coming years that Panglao Island, may in fact, exceed the arrival numbers of Boracay. That’s not only due to demand that Panglao is having across the region, but also because Boracay, being much smaller island, has some capacity limits, which Panglao does not have,” he said.
Panglao has an area of 81.88 square kilometers and a coastline length of 54.45 km, while Boracay has only 10.52 square km and a coastline length of 24.36 km.
To date, Lay noted that Panglao’s most popular area, Alona beachfront, has land values ranging from P80,000 to P120,000 per square meter (sqm). The upper end also approximates the bottom end of Boracay White Beach prices. For those looking for cheaper options, the next best option is Doljo beachfront, where land values range from P25,000 to P54,000 per sqm.
Lay said Panglao would also benefit from large-scale energy initiatives of several companies, alongside a proposed bridge that will connect the provinces of Bohol and Cebu.