THE LOCAL property sector will continue to enjoy bright prospects this year on the back of favorable economic conditions as well as forseen demand from the growing middle class as well as foreign arrivals, consultants said this week.
Both demand for and supply of residential, office and hotel units are projected to grow as government is seen to step up spending and interest rates remain low, they said.
“2012 will definitely be as good as 2011 or even better because all our fundamentals are there. There’s more positive than negative,” said Joey M. Radovan, CB Richard Ellis (CBRE) Philippines, Inc. global corporate services vice-chairman said in a press briefing yesterday.
For residential, 105,722 condominium units are slated for turnover this year as compared to just 57,979 in 2011, CBRE Philippines said.
Over 700,000 square meters (sq. m.) of saleable residential area are estimated to enter the market.
Focus will center on middle-market condominium developments, which typically sell for an average of P45,000 to P80,000 per sq. m., as flexible payment schemes and better interest rates attract young professionals and start-up families in the country’s business districts, the property consultant said.
“The shift from horizontal-style housing to the more practical condo-type development, with pricing now suited to a much wider range of buyers, shows the progress we are making toward becoming a more competitive economy,” said Jose Luis F. Matti III, CBRE Philippines asset services executive director.
A robust outlook is likewise seen for the office sector.
“The Philippines is one of the most cost-effective outsourcing destinations in Asia and we see that the office sector will sustain growth in 2012,” said Rick M. Santos, CBRE Philippines chairman and chief executive officer.
Demand for leasable office space is projected to hit around 400,000 sq. m., reflecting strong confidence in the sector, the consultancy said.
Separately, Jones Lang LaSalle (JLL) data show that from an annual average of around 360,000 sq. m. in demand for office space, clamor could increase if prospects remain stable.
“Assuming the Philippines posts a stable fiscal position and good credit standing by 2013/2014, we may expect other demand drivers to create an additional demand of roughly 100,00 to 200,000 square meters of office space,” a JLL report released on Tuesday stated.
Further, the implementation of public-private partnerships this year, in the form of big-ticket road and infrastructure developments in Metro Manila and surrounding provinces, may put an upward pressure on property prices and increase land values for many big-name developers, said Victor J. Asuncion, CBRE Philippines research and consultancy services executive director.
Both CBRE and Jones Lang LaSalle also agree that the tourism sector will provide an additional boost on the back of expected casino investments.
Around 6,000 hotel rooms will be built this year to service the gaming sector, from only 1,591 rooms in 2011, CBRE said. -- Franz Jonathan G. de la Fuente
SOURCE; BUSINESSWORLD
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AmiSa
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Tower B - Finishing Works On the Way
Tower C - Preselling
BEACH RESORT CONDO at PUNTA ENGANO, MACTAN
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Expect the real estate industry in the Philippines to boom in the next few years due to the increase demand of residential spaces. This indeed is a big market due to the continuous increase in the population and the influx of foreigners.
Best Regards,
Raymund B. Baroy
Account Manager
Robinsons Land Corp. - Cebu Sales Force
Visit Us here: Robinsons Land Premier Properties
Call/SMS:
Local: 09065549505 / 09229452718
International : +639065549505 / +639229452718
Email : raymund.baroy@yahoo.com
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