Tuesday, July 19, 2011

GROWTH | Philippine Real Estate Market Report


Featured Article | Philippine Real Estate Market Report

A friend of ours, Paul C. was kind enough to share with us a report that provides well researched, critical information for land developers, asset managers, real estate investors and regular folk like you and me.

The report is developed by Colliers International (not to be mistaken with the encyclopedia company, although i'm not sure if they're the same entity). It covers mostly real estate history and development within the Makati CBD, Fort BGC and Ortigas CBD.

Some excerpts that i found interesting:

On Rents:
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.

On High End Residential Condo Investments:
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.


Spending Indicators - Car Purchases:
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.

I do not consider myself an expert in real estate, hence articles like these are invaluable and cost free assets that help me make decisions on which real estate investments our business should consider.

Take at least 5 minutes to read through it, it's an enlightening and well written document to say the least.

Here's the link: Philippine Real Estate Market Report 2011
http://www.colliers.com/country/philippines/content/RealEstateMarketReport_1Q_2011.pdf

We'd like to hear your comments about it as well! Leave your thoughts on our comment box below!

contact:
lincOneproperties@gmail.com
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Philippine Real Estate Report 2011

20 comments:

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  3. Thanks Louise! We'll try to find similar information from our friends in the industry! Cheers!

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  12. This article is very helpful to real estate professionals. This is a deeper way to understand the market. I hope to see an updated report. It would be interesting to see how things changed in a span of 2 years.

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  14. Thanks for sharing this.Real Estate/Condominium industry in one of the businesses in the Philippines that grows faster, because of the its demands

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  15. Condominiums are good for investment because it grow fast. The demand of it grows every year but if you are planning to buy or invest a condo, choose the right developer that is well-known in the industry.

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