The Philippine Daily Inquirer made a real estate property forecast for 2008 and it looks like we’ve got a fairly good year ahead of us. Rent for office space will continue to have strong growth, and could increase as much as 15%. The demand for this will come from the BPO sector, including call centers, but there won’t be much supply for the year 2008. Vacancy in the Makat CBD and Ortigas Center are currently at single digit levels.
Accessibility still remains a key factor for the middle-income market, and prices are based upon the units’ proximity to schools, business centers, malls, and transportation hubs. High-end developers will also test the Php110,000 per sq/m price level for projects in prime locations with premium amenities.
Cluster residential condominiums will continue to emerge to give a sense of privacy and exclusivity for buyers. There will be an additional 10% increase in 2008, depending on the location. Locations like Fort Bonifacio, however, will find it difficult to increase their prices due to larger supplies.
For the hotels and leisure sectors, expect them to cater to a broader market. There will be condominium projects that are easier to maintain and are more affordable to the middle class, such as Terrazas de Punta Fuego and Hamilo Coast. Boutique hotels will be more popular as more leisure concepts get launched. There are also going to be more hotels in the Makati CBD (Raffles and Fairmont), making it easier for travelers to book rooms in the business district.
Ultimately, the growth in real estate is due to the demand for offshore services, increase in Korean investors in the country, and an increase in Initial Property Offerings from real estate developers. As Philippine properties continue to get sold to key markets abroad like California and Dubai, the income generated here will contribute significantly to Philippine real estate.
Source: Philippine Daily Inquirer, December 29, 2007, B2-1