Property sector still booming as BPO firms fuel expansion

By Othel V. Campos | May. 27, 2015 at 10:50pm [ manilastandardtoday.com ]

More business process outsourcing companies have started introducing new services, driving the growth of the property sector higher in the first quarter of 2015, real estate consultancy firm CBRE Philippines Inc. said Wednesday.

“There is no let-up in the growth of the property sector. The supply and demand across the office, residential, retail and industrial markets remain positive, especially with the upcoming Asean integration,” CBRE Philippines founder and chief executive Rick Santos said in a briefing at the Shangri-La Hotel in Makati City.

BPO revenues in 2014 grew 18.7 percent from 2013, resulting in strong office take-up at the start of year 2015.

The consultancy firm expects domestic demand to increase further in 2015 after a 4.1-percent and 10.3-percent expansion in 2014 and 2013, respectively.

The office market is expected to maintain an upward movement with the projected introduction of about 780,000 square meters of office spaces in the next few quarters.

Lease rates in the central business district of Makati inched up 0.8 percent, while overall vacancy rating rating rose 4.73 percentage points to 5 percent.

The dearth in office supply within the CBD is seen to fuel rental rates in the coming quarters and vacancies are seen to contract with the completion of new office buildings by 2017.

Fort Bonifacio absorbed more office spaces in the first quarter, while demand for office space in Ortigas increased with the expansion of BPOs.

Vacancy rates dropped from 3.97 percent to 3.34 percent quarter-on-quarter.

CBRE Philippines noted that office space activities in other areas like Alabang, Eastwood City and the upcoming Bay City remained slow but steady.
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