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YoY (Year on year), the Makati CBD premium rates increased by 4%, to an average of p820 per sq/m monthly (per net useable area.) Grade A offices stood at p680 per sq m monthly, growing by 2% over the first quarter. Similarly, Grade B office rental rates increased by an average of 3% to p450 per sq/m monthly. As comparative rental rates continue to tighten, demand for office space in Makati tends to be inelastic, considering that the stock is limited. Expectations are for both Grade A and B office rental rates to climb by 9%-11% over the next twelve months. While premium rental rates may rise to more than p900 per sq/m monthly by the start of 2012.
Strong market signals seem to hint growth across premium grade condominiums, however the market is continually fed by low- to mid-cost projects reducing supply of bigger unit sizes. In Metro Manila, condominium projects offer 70% of studio and one-bedroom units, with average sizes of 25 sq/m to 35 sq/m. The trend is most likely to continue in the medium term in accord with the emergence of the BpO (Business Process Outsourcing / Call Center) sector, one of the drivers of growth for this segment.
Early this year, CAMPI announced their forecast of a more conservative sales growth of 4% for 2011, achieving record-breaking sales in 2010. An 8.2% growth in car sales marked the start of the first quarter of 2011, with record sales of 36,293 vehicles. Sold commercial vehicles continue to dominate the market, with 23,867 units, or about 65% of the total share, while sold passenger cars increased by 11.3% to 12,426 units, or 35% of the total share. CAMPI recognizes these records as good signs, despite high growth rates last year, and they remain optimistic, despite the rise in fuel prices. Significant contributors to elevated sales are the bank’s lending capacity and the strong OFW remittances during the start of this year.