By Romesh Navaratnarajah:The residential market in Manila, capital of the Philippines is expected to grow in the coming months, according to Sigrid Zialcita (pictured), Managing Director for Research, Asia Pacific at Cushman & Wakefield.
Speaking at the recent inaugural Philippines Property Show (PPS) 2012, organised by PropertyGuru, she noted that land values are expected to continue rising in three main locations, namely the Makati central business district (CBD), Ortigas Centre and Bonifacio Global City.
In addition, the affordable condo market "attracted buyers from the middle class and OFW (Overseas Foreign Worker) households. Metro Manila, Metro Cebu and Metro Davao have seen a rising number of reasonably priced condominiums designed for start-up families, first-time buyers and young professionals from the predominantly 'C' socio-economic class", said Zialcita.
Among major investment prospects include projects by notable developers like Ayala Land, Vista Land, Century Properties, Anchor Land, CDC Holdings, SM Development Corporation and Megaworld Corp.
Residential stock is also expected to inch up further. In the Makati CBD, supply will likely sit at over 20 percent at 17,000 units in Q3 2012.
In terms of new projects, Fort Bonifacio will account for the largest share this year at 4,099 units with Makati CBD contributing 2,483 units. Next year, both precincts are also expected to lead with new stock at 2,397 and 2,105 units respectively.
Meanwhile, C&W highlighted that strong investments from OFWs in the Middle East are expected to be the country's main growth driver.
"As much as a third of remittances from Filipino expats in the Arabian Gulf are flowing into property developments in the Philippines," noted Zialcita.
Moving forward, the Philippines is expected to benefit from a strong economy, growing BPO (Business Process Outsourcing) sector, stable influx of remittances and steady exchange rates.
While there is a wide array of investment opportunities, it pays to be selective and find a good broker for property investments to grow, Zialcita said. Related Stories: Keppel Land to jointly develop S$70m condo in Colombo
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