drbubb Posted February 13, 2017 Author Report Share Posted February 13, 2017 Residential Rents to soften further - Colliers + Rents fell by 1-1.5 Percent in Q4; Makati to P837psm from P847 psm (Q3)+ Rents like to decline on: Rising supply, popularity of fringe areas+ Expeceted drop: another 5-7% over the next 12 months+ BGC fell from P848 to P833, year-on-year+ Colliers is forecasting a 54.3 percent rise in supply in Metro-Manila, from 90,784 units at end 2016,to 140,061 by 2020+ Fringe areas appeal, because they are 10-15% cheaper to rent (and maybe at least that much cheaper to buy)Examples: Vertis in Quezon City, Circuit in Makati+ Fringe area completions (4,800 units) outpaced those in the main CBD's (3,900 units)They give some figures for Capital Values, which look high to me:: Makati : P180,300, + 2.3%: BGC - : P163,200, + 2.2%: Rockwell : + 1.1%"Prices are still going up because interest rates are low""We see Makati CBD prices increasing by about 14 percent in the next 12 months, while Ft. Bonifacio and Rockwell wll grow by about 8 to 10 percent," Colliers said.( article in The Manila Times, pg. B5, Feb.13, 2017)They must be talking about prices in the 'primary' market - that is, new properties.I see lots of evidence that prices in the secondary market are weak.And fall rents are hardly an argument for rising prices, when the daily newspapers are full of stories of inflation rising, and short term rates under upwards pressure===== ==== Hot Offices: Manila ranked 19th 'most dynamic city' = Jones Laing Lasalle (JLL) has included Metro Manila in ts top 30 markets for commercial property for the first time. + A particularly dynamic market with the growing an globally competitive BPO sector + JLL ranks 134 world cities on 42 indicators, includes population, number of corp headquarters, FDI, etc + They also look at something they call "high value incubators", which are attributes which help them to maintain growth momentum, assessing things like: education, innovation, and the environment + Manila was included as an emerging megacity, along with Mumbai, Chennai, and Delhi - but the group has challenges in infrastructure, and quality of life + Manila had a strong short term momentum, with robust growth and rising real estate price, but ranked in 107th place on long term momentum + Cities like Hong Kong, Singapore, Tokyo, and Seoul remained in the top 30, but showed stagnation in growth + Top 5 were: Bangalore, Ho Chi Minh City, Silicon Valley (CA), Shanghai, and Hyperabad + The bottom of the Top 30, were: Hangzhou, Los Angeles, Dublin, Nanjing, and Stockholm Link to comment Share on other sites More sharing options...
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