Metro land values rise anew in Dec

By Kathleen A. Martin (The Philippine Star) | Updated April 30, 2015 - 12:00am

MANILA, Philippines - The sustained demand for office space and residential property in Metro Manila increased land values anew in end-December last year, the Bangko Sentral ng Pilipinas said in a report.

Citing data from Colliers International, the BSP said implied land values in the Makati central business district climbed one percent to P440,000 per square meter in the fourth quarter of 2014 from P435,000 per sqm in the third quarter.

The latest figure is also 29 percent higher than the P341,505 per sqm recorded in the fourth quarter of 2013.

In Ortigas Center, the central bank said land values were up three percent to P158,500 per sqm in end-December from P154,000 per sqm in end-September and by 10 percent from P144,683 per sqm recorded in end-2013.

The central bank noted that land values in the Makati central business district are slightly above their actual price back in 1997 or before the Asian financial crisis of 1998. However, they are only about 46 percent of their 1997 prices in real terms, or values adjusted for inflation.

Land values in Ortigas Center, meanwhile, remain lower than their comparable levels in 1997. The BSP said the current prices are only about 81 percent of the 1997 values in nominal terms and only 36 percent in real terms.


At the same time, the central bank said office vacancy rate increased in end-2014 even with sustained strong demand for space as developers open more offices in Metro Manila.
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