By Louella D. Desiderio (The Philippine Star) | Updated October 14, 2013 - 12:00am
MANILA, Philippines - More luxury residential developments are expected to rise in the Philippines in the coming years as the economy is seen to continue to grow, a property services firm said.
“We can expect more luxury developments to come as the economy improves,” CBRE Philippines senior director for research and consultancy Jan Paul Custodio told reporters.
He noted it takes about seven years before a new luxury residential development is undertaken here before, with developers unwilling to tie down their money for such projects as they are unsure of the market.
“It wouldn’t take seven years for another luxury development to come in this time,” he said.
Custodio said the sustained positive economic performance of the country is making it more attractive for foreign investors to come in.
As foreign companies pour in funds for their business operations here, the country is seeing an inflow of foreign expatriates.
“Expatriates drive the demand for luxury residential developments,” Custodio said.
At the same time, he said demand is driven by local buyers.
“The demand is both from old rich and the new rich,” he said.
To promote the luxury residential projects, he said developers are focusing on the brand and exclusive privileges and qualities being offered.
Luxury residential projects account for below one percent of the country’s total residential condominium stock.
These projects are generally located within the business districts of Makati and Fort Bonifacio.
Luxury residential projects currently being marketed in Metro Manila are the Grand Hyatt Residences in Bonifacio Global City in Taguig City and Discovery Primea in Makati City.