By Ted P. Torres (The Philippine Star)
| Updated April 13, 2015 - 12:00am
MANILA, Philippines - The property
market remains strong across all sectors as top developers continue to expand
due to the sustained growth of the Philippines as well as the impending Asean
economic integration.
According to Pinnacle Real Estate
Consulting Services Inc., the office space sector is robust due to demand from
business process outsourcing (BPOs), low vacancy and increasing rents, with
still a lot of upcoming supply.
The residential sector is diversifying
supply, successive sales, and expanding rental markets, which is further
consolidating with the market penetration of the big players with the
proliferation of different retail platforms, the report added.
It said the hotel and gaming sector is
increasing demand from record-high tourist arrivals, while the industrial
sector is boosted by the expansion of manufacturers entering in joint ventures
for government lands.
Twelve infrastructure projects worth
P184.4 billion had gotten the government nod, while another P890 billion worth
are in the pipeline.
For top real estate developers, the
influx of Asean investors and tourists means they can enlarge the plate to
accommodate the expanding pie.
The Ayala Group is leading the way by
increasing its target capital expenditure to P100 billion this year as compared
to P70 billion last year, or an increase of 43 percent.
“Apart from increasing their usual
residential developments catering to all segments of the market, including the
socialized housing, the Ayala Group is boosting its office, shopping center and
hotel portfolio. It is even embarking on education venture as well,” the report
said.
Meanwhile, SM Prime disclosed its
capital expenditure for 2015 at P66 billion to open more shopping malls,
residential projects, office buildings and hotels. It also expanded its hotel
operations.
At present, it has four hotels and
targets to open its Park Inn by Radisson in Clark, Pampanga and Conrad Hotel
Manila at the Mall of Asia by the fourth quarter this year.
The Megaworld Group, buoyed by robust
net income growth, is sustaining its township developments to service various
segments and sectors in the real estate market.
Megaworld, together with its
subsidiaries Suntrust Properties Inc., Empire East Land Holdings Inc. and
Global-Estate Resorts Inc., would launch five new townships: two in Luzon, two
in the Visayas and one in Mindanao, with a total land area of around 400
hectares.
This will bring Megaworld’s total
township land area to 3,100 hectares by yearend. Based on earlier reports, the
Megaworld Group is targeting to invest more than P230 billion until 2018.
Robinsons Land Group recently acquired
the 18.5- hectare Mitsubishi property along Ortigas Avenue, where it would
build a major township. In addition, it would expand its residential, office,
hotel and mall portfolios nationwide.
Vista Land and Puregold, on the other
hand, are intensively exploring their core competence. The Vista Land Group has
been penetrating tertiary cities where other national brands are still
contemplating on, and has been expanding its commercial retail investments. The
Puregold Group has been solidifying its position in the retail sector.
Other major players are also expanding
into other sectors such as transportation and toll ways. DMCI, Filinvest,
Metrobank/Federal Land Groups have been steadily beefing up their investments
in the power sector as well.
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