PROPERTY consultancy firm Colliers International Philippines said Friday the office and residential sectors in Metro Manila were expected to stay healthy amid a strong economy, robust remittance inflows, and stable inflation and mortgage lending rates.
The firm’s market study as of the third quarter said that office stock will likely exceed 7 million square meters in major central business districts (CBDs) in the next two years. Developers anticipate sustained demand, especially from the BPO industry.
Ownership rules limiting foreign participation in certain sectors are not seen to have a big impact on property development since foreign participation in this sector is “minimal” anyway, Colliers International managing director David Young said.
New supply is expected to be at more than 500,000 sq m in 2013, an increase of 28 percent year-on-year and a new record high.
In Makati CBD, total office stock increased to more than 2.75 million following the completion of Zuellig Building with 57,000 sq m.
In the residential sector, new supply of high-rise residential condominiums in the five sub-markets tracked reached almost 5,000 units in the first nine months of 2012.
The majority of these are located in Fort Bonifacio. In the Makati CBD, the stock is unchanged at 15,513 units since March this year, Colliers International said.
Other upcoming completions include Raffles Residences (237 units), Greenbelt Madison (276 units) and The Grand Midori Tower 1 (279 units).
Both the Makati CBD and Fort Bonifacio will have the strongest supply pipeline in the next two years.
As for retail, new retail supply reached more than 60,000 sq m in the first nine months of this year. Colliers International attributed this to Magnolia Town Center in Quezon City and the partial re-launch of Glorietta 1 and 2 in Ayala Center.
“In the long term, retail developments will consistently expand across the untapped geographic markets in Metro Manila, around BPO and commercial centers, and within the master-planned communities,” the report said.