Growth seen to push outside usual CBDs

DUBAI: Cities directly around the periphery of Metro Manila will see growth. Makati, Ortigas and Quezon City’s upscale residential villages will likely become even more pricey. Residential condominiums and townhouses in quiet suburbs will grow as well as primary home properties that incorporate healthy lifestyles.

More population will move to SM’s Bay Area, Aseana City and Megaworld’s Newport City as the expressway connection is completed in April 2016. Lastly, there will be fresh demand for office spaces as well as industrial lots from companies moving to the Philippines via the ASEAN Integration.

This, according to industry leaders, who said the real estate market continues to be beneficial to investors. They as well provided key indicators that can give hints on the type of developments to expect and the property segment that will see greater value appreciation.

Lamudi, a global property portal with focus on emerging markets, stated in a report that the outlook is promising.

“The local property market continues to thrive, and investing in real estate remains safe and ideal for the remainder of the year and for the foreseeable future,” Lamudi said in its report, “Real Estate Investment: The Philippine Market in 2016.”

Carl Dy, president of Spectrum Investments, a property portfolio management firm, for his part, identified important developments that could help overseas Filipino workers (OFWs) looking to buy or invest on properties arrived at an informed decision.

For one, he cited congestion in Metro Manila, rising property prices and the new work habits brought about by the internet as factors pushing development outside the usual central business districts (CBDs).

He said cities directly around the periphery of Metro Manila like Rizal, Bulacan, Pampanga, Cavite, Laguna will see growth due to the expansion of the developments. “Land use around these areas will move up from agricultural to industrial, and from industrial to residential and commercial,” he said in a brief sent to The Filipino Times.

Positive movement in Cebu’s real estate is also seen with the completion of the US$320-million Mactan Cebu International Airport (MCIA) project by the GMR Infrastructure and Megawide Construction Corp. of the Philippines (MCCP) in February 2018. The project is seen to boost passenger capacity from 4.5 million a year to 12.5 million and will open the gateway to the Visayas and Mindanao.

The completion of the NAIA Elevated Expressway in April 2016 will boost growth and move more population to SM’s Bay Area, Aseana City and Megaworld’s Newport City.

Dy said that as the ASEAN Integration has taken effect on Dec. 31, 2015, there will be fresh demand for office spaces, residential condominium units, industrial lots for manufacturing and warehousing and an increasing demand for residential units for lease where the new businesses will put up shop.

The ASEAN Economic Community (AEC) is an ASEAN initiative that will create a single market where goods, capital and skilled labor will be allowed to move freely across borders within the participating 10 ASEAN countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

According to the Lamudi, land values still continue to appreciate, albeit in a slowed pace despite the slower GDP growth in 2015. It cited a report by global real estate consulting firm Colliers International, which showed that growth rates of land values in Metro Manila went up in the second quarter of the year.
The company further said land values in the Makati central business district, growing at only 0.85 percent during the first three months of the year, rebounded in the next three by growing at 2 percent. This raised its average price to Php452,704 per sqm, Lamudi said, adding that values similarly rose in the business districts of Fort Bonifacio and Ortigas Center, increasing at 1.97 and 2.1 percent, respectively.
“Deciding to invest in real estate in these areas allows one to hold property and sell later on when the value has risen, or rent out to individuals or entities who are in need of space but prefer not to buy,” Lamudi said in its report.