Published on Thursday, 07 March 2013 00:00 [
Malaya.com.ph ]
Written by ALBERT CASTRO
By A Web
design Company
Malaya
Business News Online - Philippine Business News | Online News Philippines
The property market will continue to be strong
for the next six years with more supply coming on stream in many of the
industry’s segments, according to property consultant Jones Lang LaSalle.
“This year is
going to be better than last year, and it will be much better next year,” said
David Leechiu, Jones Lang LaSalle Philippines country manager.
For the year,
prospects will be driven primarily by the business process outsourcing (BPO)
and the residential sectors, according to Leechiu. The office space’s primary
booster, the BPO sector will continue to grow as overseas companies looking to
maximize their efficiency, Leechiu said.
Leechiu also
said the residential segment is starting to be a boon for the high-end
condominium market with property prices of detached homes surging in the past
years.
“A P70-million (property) is the new P25
million. Valle Verde properties for example, which were going P25 million before, are now priced at P60 million to P70 million. A house in
Dasmarinas (Village) or Forbes which used to cost P50 million now costs P250 million to P300 million,” said Leechiu.
The property market will likewise benefit from
expansion of traditional offices.
Jones Lang
LaSalle expects more foreign banks to set up shop in the Philippines.
Leechiu noted that some overseas companies
that have presence in the Philippines
are treating their local office as an independent “leg” in their global operations.
Leechiu said
investments in mining and public-private partnership projects will have a multiplier effect on the property
market.
Leechiu said the PPP projects will have a significant impact on the country.
“Because many
of these projects are not Manila-based (and) are in the growth centers, the impact will be
significant and over the medium term,” he said.
“When these
PPP (projects) start rolling out, they would
have a four- to six-year life. They would have so much scale that contractors here cannot
absorb all that work,” Leechiu added.
Jones Lang
LaSalle said prospects of the market are so good that its major headwinds can
only be major disasters.
Leechiu said
another factor that could derail the growth of the market, though it also has a
positive flip side, is the ongoing fiscal crisis in Europe which may cause a
double-dip recession on the US.
“If there’s a
collapse in the European economy, a real collapse, that’s going to cause a double dip the US, that could really
slow us down,” said Leechiu.
He said this
could also have the opposite effect when investors turn to China and Southeast
Asia.
“Where they
come from they’re only earning 1 percent for their investments. Here, they’re getting 5, 6, 7 times that. And
the amounts are small --- $20,000, $30,00. You will see more and more of that
coming to the Philippines,” Leechiu also added.
Jones Lang
LaSalle on Tuesday released its study
showing the Metro Manila property market would be supplied by 26 emerging
districts with about 1,300 hectares of developed land --- Fort Bonifacio and
Makati: the 21-hectare Circuit Makati (the old Sta. Ana racetracks) of Ayala
Land; the 74-hectare Arca South (formerly FTI); the 15.4-hectare Uptown
Bonifacio of Megaworld; and the 10-hectareVeritown Fort by Federal Land.
The
Philippine retail space segment meanwhile will benefit from the entry of
international retail brands like Uniqlo, American Eagle Outfitters, IHOP,
Family Mart, Grand Hyatt etc.
The
residential segment meanwhile will see about 149,000 units coming on stream in
the next five years (2013 to 2018), higher than the 135,650 units built between
1999 and 2012.
Of the supply
in the pipeline, 55 percent would be in the affordable segment (priced at P1.5
million to P3 million); 33 percent in the P3 million to P6 million price range;
9 percent in the P6 million to P10 million price range; and 3 percent in the
P10 million and above price range.
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