February 10, 2013

2013 Good Year for Property Sector

The Philippine property market is on its journey for having another great year this 2013 as property consultant Colliers International reported that urban land values and rental rates in Metro Manila is highly likely to increase.

Residential, office, commercial and hotel segments in Metro Manila are said to be great prospects for the next 12 months together with industrial estate where logistics and warehouse providers are getting more in-demand according to Colliers International Philippines associate director Julius Guevara.

Land values dramatically elevated as Bonifacio Global City leads the race with 28.1% last year to an staggering P237,000/sqm and expected to reach P250,000/sqm by the fourth quarter of 2013.

Residential sectors are still in high rate as vacancy remains low and rental rates are seen to have improvements by more than 6% in Makati CBD in 2013 while office sectors vacancy rate dropped to nearly 3% driven by the strong demand from the business process outsourcing (BPO) industry.

On hotel and leisure, Colliers noted that developers have been banking on increasing tourist arrivals to justify new hotel development. In Metro Manila, it estimated that more than 15,000 new rooms would be introduced in a span of four years, half of which would be in the upcoming Entertainment City of Pagcor. But Guevara said rates per room were now expected to soften.