PROPERTY DEVELOPERS, along with real estate investors, can expect to enjoy continued robustness in the market next year with economic activity seen to generally drive up rental rates,
occupancies and asset values in Metro Manila business districts.
Consultancy Colliers International Philippines, in its third- quarter market report, particularly pointed to the usual factors -- consumer spending, business process outsourcing (BPO) industry growth, and a shortage in mass housing -- as driving up prices of residential, office and retail sites in the next 12 months.
Rental rates of luxury residential condominium units in key areas, for instance, are seen to rise next year.
Three-bedroom units under this housing type in the Makati central business district (CBD) will likely be leased out for 2.2% more in the third quarter of 2012 versus the same quarter this year when leases averaged at P178,000 permonth for a 290-square-meter (sq m) property.
Those in Rockwell and Bonifacio Global City will meanwhile see a 4.9% and 5.8% respective hike in rental rates, Colliers said.
This, even as the vacancy rate for luxury condominium units along with other grades are seen to increase to as high as 12.4% in the Makati CBD by the third quarter next year versus the 10.4% vacancy seen in the same period this year.
Capital values for luxury three-bedroom, high-rise units will meanwhile rise by 1.5%-5.2% in 12 months depending on whether they are located in the Makati CBD -- the area said to see the highest hike -- Rockwell, or Bonifacio Global City.
Office spaces
The office sector will enjoy a similar robustness, Colliers added.
“The outlook is that premium rental rates will increase at 3.6% to P920 per sq m over the next 12 months [from levels recorded in the third quarter this year] and are projected to breach the 2008 level of more than P1,000 per sq m in the course of two to three years,” Colliers said, further noting that Grade A and B rental rates will meanwhile peak by 11% by the third quarter of 2012.
Take-up for the office segment is also reported to be brisk as the office vacancy rate for all grades are seen to dip to 3.34% in 12 months after already falling to 3.84% in the third quarter from the 4.15% recorded for April to June.
Retail sites
The retail sector will see higher take-up as well, Colliers said.
“Vacancy rates, in both super-regional and regional malls across Metro Manila, decreased by 0.25% this quarter with occupancy level remaining high at 99%,” it said.
“Consumer spending, which improved by 9.9% during the first half of this year, may continually drive mall occupancies to a long-term high,” it said.
As such, rental rates in Ayala Center malls could rise by 1.6% in 12 monthswhile those in Ortigas are seen to hike leases by 1.9%.
“Despite global uncertainties, the economy is still expected to be resilient,” it said. -- FJGDLF
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Occupancies and rent seen to rise in 2012
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