Ayala luxury condo unit sold for P477M

Posted on July 27, 2016 [bworldonline.com]

A UNIT of Ayala Land, Inc. (ALI) is looking to generate P20.5 billion in sales from its new “ultra-luxury” condominium development located at the site of the old Mandarin Oriental hotel in Makati City.

 Ayala Land Premier’s Park Central Towers will rise in the location of the old Mandarin Oriental in Makati City.

Ayala Land Premier’s (ALP) Park Central Towers boasts of the most expensive residential condominium units in the country, with prices ranging from P32 million to P477 million for the three-level penthouse.

In a press briefing on Tuesday, ALP Sales Head Mark Z. Jugo said the developer has sold P8.3 billion worth of units at the Park Central Towers at an average price of P300,000 per square meter (sq.m.) making the two-tower condominium its most expensive product to date.

This includes the P477-million Anadem Villa One, which is said to be the highest value primary condo unit sold in the Philippines. At approximately 1,635 sq.m., the three-level penthouse has a limited common area and 281-sq.m. pool deck.

“It is pretty hard to mention the superlatives, because we do not have a reference but currently it is the highest-end product that we are selling,” Mr. Jugo said.

Located at the corner of Paseo de Roxas and Makati Avenue, Park Central Towers was labeled “ultra-luxury” due to the value of the land area dedicated to the project, larger unit sizes, and other finishes unique to the development, Mr. Jugo said.

“First, [the tower] is offering hectares, that is real luxury given the prices of land at the center of Makati is quite high. Second, our units here are bigger than our typical two-bedroom units. Third, there are some finishes that we will be placed in these apartments that were not found at our traditional luxury units,” Mr. Jugo said.

The company has already sold 41%, or 116 units, of the south tower’s 281 private residences to ALI’s loyal clients. The public launch will happen in September.

“Most of these clients are purchasing for entries [in Makati]. I think it addresses some of the requirements in the high-end market now. You know if you want to live in Makati, you want to have a personal space,” Mr. Jugo added.

He declined to provide the total cost of the project, only commenting that it “is more premium than their other traditional products.”

The 69-storey South Tower offers 12 different unit designs and layouts. The average cost of a unit is close to P80 million.

Park Central Towers will have 57 residences with a private pool and 111 units with double-volume-high ceilings and a private elevator lobby.

“The building will typically only five units per floor. Since most units have their own dedicated private elevators, well-heeled residents will likely not see each other in the elevator lobbies or lifts,” Jose Juan Jugo, ALP managing director, was quoted as saying in a statement.

Turnover of units at Park Central’s South Tower will begin in 2024.

Mr. Jugo said the second tower will be launched depending on when the first tower will be sold out. -- Mac Norhen E. Bornales    

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Metro residential market seen bottoming out this year -- JLL

By Krista A. M. Montealegre, National Correspondent

Posted on July 27, 2016 [bworldonline.com]

THE Metro Manila residential market may bottom out this year, with property developers expected to ramp up new project launches to cater to growing housing demand, property consultancy said on Tuesday.

 An artist’s perspective of SM Development Corp.’s Shine Residences in Ortigas. -- WWW.SMDC.COM

In a briefing, Claro dG. Cordero, Jr., head of Jones Lang Lasalle (JLL) Philippines’ research, consulting and valuation advisory services, said developers have remained cautious so far, with unit launches in the first half reaching only 38% of the close to 10,000 units rolled out in 2015.

“We are at the bottom. By next year, we might be seeing improvement in new launches and the issuance of licenses to sell because the supply pressure is not there anymore,” Mr. Cordero said.

“In terms of new product launches, the bottom will likely be at 5,000 units per year in Metro Manila. This year, we may likely hit 5,000 units,” he added.

The supply of new units in the market will drop to around 25,000 next year from a high of roughly 40,000 in 2015 and 2016, easing the pressure and prompting developers to start ramping up project roll outs, Mr. Cordero said.

Oversupply worries in the condominium market triggered by the aggressive expansion of Henry Sy-led SM Development Corp. (SMDC) have prompted developers to delay the launch of some projects since reaching its peak in 2012.

“They are getting aggressive. As they become aggressive, the other developers will follow through,” Mr. Cordero said.

By the end of the year, SMDC is expected to become the country’s biggest developer in terms of completed mid-range to high-end residential units in Metro Manila with 45,090 units, followed by Megaworld Corp. at 37,900 units and DMCI Project Developers, Inc. at 25,300 units.

By 2021, SMDC is seen retaining its dominant position with 69,200 units followed by Megaworld at 54,000. Ayala Land, Inc. will take the third spot with 43,900 units.

The Philippines’ high-growth trajectory and growing population will continue to fuel demand for housing, office and factory space, JLL National Director P. Ryan Isip said.

At end-March, Manila ranked 10th with lowest rental value and fourth with lowest capital value among 27 key Asian cities, JLL Head of Tenant Representation Lizanne H. Tan said.

“There is a lot of space between where we are today and where we can be... If you look at the cost of money as to what you can make, the rental yields [provide] an opportunity. This is one of the best opportunities in the region. If anybody doesn’t have a real estate play here, it’s time to get into it,” Mr. Isip said.

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Banks tighten loan standards for real estate, housing in Q2

By Lawrence Agcaoili (The Philippine Star) | Updated July 25, 2016 - 12:00am

MANILA, Philippines - Banks continued to tighten lending standards for commercial real estate and housing loans in the second quarter of amid the reduced tolerance for risk and perception of stricter financial system regulations.

Dennis Lapid, deputy director at the BSP’s Department of Economic Research, said the central bank’s second quarter Senior Loan Officers Survey showed a net tightening of overall credit standards for commercial real estate and housing loans.

“The diffusion index (DI) approach, however, continued to indicate a net tightening of overall credit standards for the second consecutive quarter,” he said.

In terms of specific credit standards, Lapid said respondent banks showed wider loan margins, reduced credit line sizes, stricter loan covenants, and increased use of interest rate floors.

In the diffusion index approach, a positive index for credit standards indicates that the proportion of banks that have tightened their credit standards is greater compared to those that eased.

Using the modal approach, Lapid pointed out about 90.5 percent of the respondent banks indicated unchanged credit standards for commercial real estate loans in the first quarter.

In the modal approach, the results of the survey are analyzed by looking at the option with the highest share of responses.

Lapid said the demand for commercial real estate loans was also unchanged in the second quarter based on the modal approach.

However, he revealed a number of banks indicated increased demand for the said type of loan on the back of increased working capital and inventory financing needs of borrowers, clients’ improved economic outlook, and more attractive financing terms offered by banks.

Over the next quarter, although most of the respondent banks anticipate generally steady loan demand, a number of banks expect demand for commercial real estate loans to increase further.

The results of the first residential real estate price index (RREPI) released last June showed the country’s property sector remained vibrant in the first quarter.

The RREPI increased by 9.2 percent in the first quarter from 5.1 percent in the fourth quarter of last year.

“This represents a vibrant housing industry in the Philippines and the robustness of this conclusion is confirmed by the trends in consumer prices as well as the recent result of the Consumer Expectation Survey,” BSP Deputy Governor Diwa Guinigundo earlier said.

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