Photo from Colliers

In recent years, the Philippines has become one of the hotspots for real estate investors in Southeast Asia. The growing economy and increasing middle class have made the country very attractive to both local and foreign investors.

This 2020, Colliers International Philippines is seeing a sustained property market over the next two years, but advises investors to recalibrate plans to adapt to the constantly evolving property landscape in the country.

“Overall, we see the Philippine economy’s upward growth trajectory being sustained by massive public infrastructure spending. The government spending-backed economic growth should further stoke the property sector,“  the real estate consultancy firm said in its report Outlook for 2020: Landlords and tenants recalibrate amid a constantly evolving property landscape.

OFFICE PROPERTY MARKET

Colliers believes that the office property market demand drivers will remain diverse in 2020. Colliers has observed that the demand base started to diversify in the fourth quarter of 2016 and is expected to continue over the next twelve months. Traditional firms, business process outsourcing (BPO), knowledge process outsourcing (KPO) firms and POGOs are likely to dominate Metro Manila office space take-up in 2020.

Photo from Colliers

Meanwhile, Colliers sees several headwinds that might limit the office property market growth in the next three years. These include the lingering concerns on the sustainability of POGO firms, the uncertainty of the government’s tax reforms, and a lower Gross Domestic Product (GDP) growth projection. Multilateral lending firms such as the Asian Development Bank (ADB) are now projecting a 6.0% growth versus 6.2% of last year. A slower economy may slow down the expansion of traditional and non-outsourcing businesses. While the delayed approval of the Comprehensive Tax Reform Program which intends to reduce tax perks for foreign investors has compelled several outsourcing firms to take a wait-and-see stance.

 

RESIDENTIAL PROPERTY MARKET

Co-living residential projects within and on the fringe areas of central business districts will remain popular among young professionals who want to live near their workplace but cannot afford to buy or lease out condominium units within major CBDs. In 2020, Colliers sees developers continuously exploring opportunities in co-living projects, cashing in on the demand brought by the worsening traffic crisis in Metro Manila.

In terms of pre-selling condominium projects, Colliers sees sustained demand from investors and local and foreign employees. Colliers projects the delivery of about 15,610 units, outpacing the 10,700 units delivered from 2016 to 2018, a period that benefited from the trickle-down impact of offshore gaming demand.

Colliers also sees more joint venture projects between local real estate developers and their ASEAN counterparts in 2020. Joint venture projects with foreign firms are among the more expensive in the market, but take-up is strong. Colliers sees these partnerships thriving as foreign companies are enticed by sustained yields.

Photo from Colliers

“Metro Manila’s condominium stock should expand to 152,000 units by the end of 2021, a 28% rise from about 118,900 in 2018. Colliers sees Fort Bonifacio and the Bay Area covering more than 80% of new supply from 2019 to 2021. In our opinion, the pace of residential completion continues to move in step with the expansion of business activities in these business districts,” the property consultancy firm explained.

RETAIL PROPERTY MARKET

“We expect the completion of about 310,000 sq. meters of new retail space in 2020. Due to the substantial new supply, we see vacancy rising to about 12% with lease rates rising at a slower pace of 1.0% from 1.3% in 2019. In our opinion, mall operators should continue to implement innovative leasing strategies and attract interesting tenants to fill the substantial amount of new retail space,” Colliers said.

Photo from Colliers

Vacancy should decline back to about 11% by the end of 2021 given the take-up from new tenants and a slightly muted retail space completion metro-wide. Colliers believes that retail space absorption over the next 12 to 24 months should be supported by the completion of office and residential towers near malls located within major townships across Metro Manila. Aside from sustained demand from local consumers, retail sales should also be buoyed by the continued expansion of offshore gaming firms in Metro Manila.

“Colliers believes that a major opportunity for Metro Manila mall developers is the housing of flexible workspaces. Colliers has observed that flexible workspace operators are continuously looking for space across Metro Manila. But with office vacancies hovering between 0.5% and 1.0% in prime locations such as Makati CBD and the Bay Area, these operators have been scrambling to find suitable space,” Colliers added.

HOSPITALITY PROPERTY MARKET

Colliers projects a 70% occupancy from 2020 to 2022 due to the rising number of foreign tourist arrivals.  The continued rise of foreign tourists should sustain occupancy despite the expected delivery of about 3,300 hotel rooms. A key contributor to hospitality growth in the country is the rising number of Chinese tourists. While total foreign arrivals are growing by 10% per year from 2016 to 2018, Chinese tourists increased by about 37% per year during the same period.

“Over the next twelve months, we still see Chinese tourists driving the hospitality sector and contributing to higher hotel occupancy and spending in Metro Manila and other key destinations across the country,” Colliers said.

Photo from Colliers

The Grand Midori Ortigas

This 2020, top real estate developer Federal Land, Inc. is slated to launch several condominium projects in Metro Manila.  Set in key areas such as Bay Area, Fort Bonifacio, and Manila, these condominium projects’ value is projected to surge even further in the coming years.

Federal Land also offers condominium units for sale in Quezon City and Ortigas CBD. For pre-selling reservations, email invest@federalland.ph or visit www.federalland.ph.

 

Mi Casa at Metro Park

Choosing a condo for investment is not an easy decision to make.  After all, there are several options on the market, each better than the last.  If you are interested in the Bay Area, then a Federal Land, Inc. condo is your best bet to grow your investment.  Here are five good reasons for buying and investing in Federal Land’s Metro Park.

 

Residences are resort-inspired communities

Mi Casa at Metro Park

The condominium communities of Metro Park redefine high-end living with a relaxing vacation atmosphere.  Residents will get the feeling of not just being at home, but also being like at a resort at the same time with its club-like amenities and tropical aesthetics against the backdrop of the world-famous Manila Bay sunset, only for the select few.

Prospective homebuyers and investors can choose from several deluxe resort communities.  There is the exclusive Bay Garden Club and Residences, the first community to rise in the Metro Park enclave.  There is the Six Senses Residences, distinctive for its lucky number eight shape. There is also the sunny Palm Beach Villas and Palm Beach West.

Federal Land’s latest offering by the bay is Mi Casa, a vibrant vertical residence reminiscent of Hawaii’s reinvigorating aesthetic of open sea and air.  Mi Casa will have four towers: Hawaii, Maui, Lanai, and Honolulu that will bring in the modern tropical paradise streamlined for Filipino contemporary living.

Each of the condominium communities offer thoughtfully designed and well-spaced units for comfortable living.  There are also intimate gathering spaces in the amenity deck to foster a close communal relationship.  Residents can host barbeque parties, movie nights and play dates all within a neighborhood that embraces the sun, wind, and sea.

 

Federal Land is one of the top developers in the country

Six Senses Residences at Metro Park

As a homebuyer and investor, acquiring property from a reputable developer with a solid track record is a must.  It guarantees that the condominium project is delivered on time, has topnotch quality and set in a strategic location – three factors that will ensure your condo can fetch a good price in the secondary and rental market.

Founded in 1972, Federal Land has since developed over 55 large-scale projects that redefined the key areas of Metro Manila, Cavite and Cebu.  Federal Land is best known for its many iconic developments GT Tower International in Makati, Marco Polo Residences in Cebu, Grand Hyatt Manila in Bonifacio Global City, and the upcoming Norman Foster luxury condo The Estate Makati.

Metro Park is a master-planned community

Blue Bay Walk at Metro Park

The Metro Park community is a sprawling 36-hectare master-planned community in the business district of Bay Area, Pasay. Metro Park is a modern and vibrant community home to deluxe resort residences of Bay Garden Club and Residences, Six Senses Residences, Palm Beach Villas, Palm Beach West, and Mi Casa; stylish shopping centers of Blue Bay Walk, and Met Live; PEZA-accredited office towers iMet BPO; spacious event centers of Le Pavillon and Le Parc; elite Nursing school Manila Tytana Colleges; and a pet-friendly park – all set within the emerging Entertainment City.

With a workplace, mall, school, and park just a stone’s throw away, a balanced live-work-play lifestyle awaits residents looking to live the good life.

 

Bay Area is near business districts, university belt

The South Luzon Expressway and The Metro Manila Skyway

Though located on the western coast, the Bay Area can easily access the important places of the Metro Manila.  Bay Area is near the central business districts of Makati, Ortigas, and Bonifacio Global City.  The universities along Taft and España Avenues are also just a short drive away; while the theaters at Cultural Center of the Philippines and amusement rides of Star City are within Pasay City.

Travel to and fro Bay Area is also convenient with numerous roads and skyways connecting the area to the rest of Metro Manila.  There is the Metro Manila Skyway System, Manila–Cavite Expressway or Coastal Road, C5 South Link Expressway, NAIA Expressway, Macapagal Boulevard, and more.  Bay Area is also near the Ninoy Aquino International Airport and Port of Manila, providing more convenient transportation between the other destinations in the country.

 

Investment has high returns

Mi Casa at Metro Park

Colliers International Philippines foresees that the Bay Area will be among the most in demand and expensive condominiums for sale that will go beyond PHP300,000 (USD 5,700) per sq. meter.  The high demand and the soaring price are due to the influx of Chinese expatriates working in the Philippine Offshore Gaming Operations (POGO).  Another reason is the rise of Bay Area as the entertainment capital of the country that houses four major casino resorts: Solaire Resort and Casino; City of Dreams Manila; Okada Manila; and Resorts World Bayshore.

Looking at some of the residences in Metro Park such Bay Garden Club and Residences and Palm Beach West, the prices per square meter has risen exponentially over the years.  In 2017, Palm Beach West is worth around Php 212,000 per square meters; which rose to Php 312,000 per square meter in 2019.  That is a 47% increase in just two years.

“The best thing about investing in a Federal Land condo is its quality.  I know I can resell or lease at high market value because its value is justified.  The community is in a great location, the amenities are well-planned, and the unit itself spacious and wonderful,” shares one of the Federal Land condo investors.

Mi Casa at Metro Park

To learn more about Metro Park, visit the website at www.federalland.ph or visit the Mi Casa Showroom and Palm Beach West Showroom located at Metro Park, Bay Area, Pasay City.