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Bay Area real estate: KMC is betting big


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referring to the vast land along Manila Bay that includes the Pagcor Entertainment City, the SM Mall of Asia complex as well as the Federal Land and Aseana estates—is projected to end 2019 with 862,400 square meters of Grade A office stock, thereby becoming the third largest office district in the National Capital Region next to BGC and Makati.

https://business.inquirer.net/221000/kmc-savills-bets-big-manila-bay-area

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This data, which you may have missed,

confirms much Office construction in the Bay Area: +197% vs. only +11% in Makati

 

 

2017 Office Market:

Still Good, but a Big Jump in supply is just ahead in 2017, says JLL

 

Rents seen to rise amid growing demand from outsourcing firms, low vacancies ...
“The vacancy rate dropped to 2.2 percent in the third quarter of 2016 ..."

Philippine Daily Inquirer / Nov. 26, 2016

The Philippine office property market may see a continued rise in rental rates over the short term despite the growing demand from outsourcing and offshoring companies.

This was based on the latest Asia Pacific Property Digest of JLL, a global professional services and investment management firm.

According to the report, 10 office developments are expected to add 348,000 sqm to total stock in the next two quarters. This will likely push rent growth rates down as the large incoming supply comes on stream, the JLL report added.

Rising rents

However, the market is expected to likely “remain tilted in favor of landlords with rents expected to continue to increase amid ongoing demand from the outsourcing and offshoring sector and a low vacancy environment. Many upcoming projects in Makati central business district (CBD) and Bonifacio Global City (BGC) have high pre-commitments,” it further said.

Based on JLL’s latest report, leasing activity remained robust in the third quarter, pushing rents to rise by 2 percent to P965 per sqm per month, compared to the previous quarter. Capital values posted an increase of 2.2 percent quarter on quarter to P126,115 per sqm from the July to September period, up from the P123,400 per sqm in the previous quarter.

“The Philippines remains a popular FDI destination in the region, on the back of firm economic fundamentals and robust domestic consumption,” the report stated.

Net absorption

The JLL property digest further reported that the net absorption in the Makati CBD and Bonifacio Global City* remained high in the third quarter at 43,000 sqm.

However, the net take-up slid from the 59,800 sqm recorded in the second quarter due to increased occupancy levels in the existing and newly completed developments.

. . .

Developments slated for completion for the said period faced delays. The office developments that are expected to be completed in the last quarter of 2016 included the Inoza Tower, Ore Central, Vista Hub and W City, all of which are located within the BGC.

From above:
Forecast New Office Supply (NUA, in sq m)
Location: Makati- : -Ortigas- : FtBonifacio: Alabang : Man.Bay : +? TOTAL : Mak+BGC
end'15 : 2,853,034 : 1,380,282 : 1,170,503: .. 389,701: . 257,422 : : 7,504,365
:2016 F : . . 13,250 : . . 14,503 : .. 177,845 : . . 35,562 : . . 61,536 : ? . . 450,385 :
201,095
:2017 F : . . 16,465 : . . 60,617 : .. 385,695 : . . 86,658 : . . 73,755 : ? . . 817,968 : 402,160 >> Biggest year! 2017
:2018 F : . . 41,326 : . . 45,673 : .. 173,114 : . . . .- 00 - : ..142,351 : ? . . 756,754 : 214,440
:2019 F : . . 50,362 : . . . .- 00 - : .. 250,401 : . . 58,277 : ..123,452 : ? . . 881,965 : 290,763
:2020 F : . 183,453 : .. 278,445 : . . 29,634 : . . 35,010 : ..105,572 : ? . . 840,096 : 213,087
:5 Years: . 304,857 : .. 399,238 : 1,016,689 : . 216,506 : . 506,667 : ? 3,747,168: 1,321,545
TOTAL : 3,157,891 : 1,779,520 : 2,187,192 : . 605,207 : . 764,089 : : 11,251,533:
+change : + 10.7% : .. + 28.9% : .. + 86.9% : .. + 55.3% : . +196.8% : . . + 49.9%:
Total for Makati + BGC for 2017-2020 = 1,120,450 / 4 years = 280,113 pa, or 70,028 sqm per Qtr.
Up from about 50,000 per Qtr in 2016, but 2017 will be heaviest at about 100,000 per Qtr.
"10 office developments are expected to add 348,000 sqm to total stock in the next two quarters"
- is that for Greater Manila??

 

From 4Q16 to 2020, the estimated office space to be added to the existing stock is 2.8 million sqm. Notable developments expected to complete include World Commerce Plaza by MEG in BGC, SM Three E-com Center by SM Prime Holdings in Bay City, Megablock BPO I and Megablock BPO II by Filinvest Land Inc (FLI) in Alabang, Alveo Financial Tower by Alveo Land, a subsidiary of ALI, in Makati CBD, and Robinsons Cyberscape Gamma by Robinsons Land Corporation in Ortigas CBD.

==

> http://www.ap.jll.com/asia-pacific/en-gb/Research/Philippine-Property-Digest-3Q16.pdf

 

 

> MP source: http://www.greenenergyinvestors.com/index.php?showtopic=20624

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