** Thank you, Google & Colliers, for the research and data provided in this article Makati, Ortigas, Taguig, Manila--These are the center of Businesses and growth in the country. The robust industry of real estate is being back up by the strong economic growth and development happening. Here are some market insights from the year 2016 and forecast for 2017 on investing in Manila. Real estate is indeed booming not only in Manila but all over the country. There are buildings and areas being developed both in urban and rural areas. The pre-selling market has rebounded after 4 consecutive years of decline. Less popular areas are now being developed as an alternative to the expensive projects and districts in the Central Business Districts. Rentals in the secondary areas serves as halfway houses for millennials and other professionals who choose to live near their workplace due to the worsening traffic conditions in the Metro. THE YEAR THAT WAS 2016 has a lot of completions in secondary areas. It reached around 4,800 units which is higher than the Central Business Districts at 3,900 units. Buyers and investors are now drawn to these areas due to the 10% discount they get on rents and purchase. Overall vacancies continue to rise as 2016 ended. It stood at 10% which is a 2.2% increase compared to the first half of 2016. Capital Growth in the 4th Quarter of 2016 increased 1.4% which is PHP979 per SQM Growth in capital values slightly exceeded that of rents at 1.5% which is PHP128,000 per SQM. WHAT TO EXPECT The demand for units in the Central Business District on pre-selling and leasing will experience a slowdown. This is due to the developments and expected completions in less popular areas. The supply of additional 22,800 units will be completed in the next 12 months. Deliveries in the areas of Makati will be around 7,500 units; Ortigas Center delivery will be around 7.9% in the next 12 months. The vacancy rate is projected to increase in Major Business Districts between 12% to 16% over the next 12 months. Makati’s Central Business District vacancy will increase to around 14% in the next 12 months. The rent is expected to decline in Major Business Districts between 2% to 6% over the next 12 months due to slow delivery of new units. Capital value continue to rise in the 4th Quarter of 2016 which is likely to continue in the coming year. Makati rose by 2.3% which is PHP180,300 (USD3,700) per SQM; this is from PHP176,200 (USD 3,600) per SQM in the 3rd Quarter of 2016. Fort Bonifacio prices increased by 2.2% which is PHP163,200 (USD3,300) per SQM per month. There will be expansions of mix-use developments or what Megaworld calls – ‘townships’ not only in the CBD but more so in the developing areas of the country. These areas now offer a better value proposition than the stand-alone developments.
Real estate indeed has been profiting from the better economy the Philippines is experiencing. Aside from this, the rental of office spaces will also continue to rise as BPOs continue to increase in number and invest in the Filipino people. According to research, the cities and provinces of Cebu, Bacolod, Iloilo, Pampanga and Davao is now being considered as one of the developing areas to look out for considering the population, growth and talent these areas have. Local economy is very strong and picking up in the coming months of 2017. The upward trend of the Philippine economy is indeed attracting visitors and investors to the country. This indeed is the step to creating more housing, more business and more tourists to see and be part of the Philippines growth. This is the time to invest and have a place in the Philippines. It’s also good to consider residing in the country’s premier city, Manila. Megaworld Manila would love to show you the projects they handle. You can reach them thru landline 632 241 8000 or thru SMS +63 915 843 2462. Like, comment and Share the Facebook Page Megaworld Manila Official. You may also send an email about your inquiry at [email protected]. Or visit our showroom at 4F Lucky Chinatown Mall Annex A Reina Regente Street Binondo Manila.
0 Comments
Leave a Reply. |
The Premier City ExplorerThe Premier City Explorer is the official blog site of Megaworld Manila. ZipMatch 360 Tour!Step into your future home without even leaving your seat! |