Consulting firm, Pinnacle Real Estate reports the country's current economic stats and enumerates the preparations of top real estate developers for the upcoming ASEAN economic integration.
Property consultant Pinnacle Real Estate Consulting Services, Inc. released their Market Insight for March 2015. Here are the highlights of the report:
The country’s economic competitive advantage against its fellow countries within the Association of the Southeast Asian Nation was reviewed in time for the integration of the ASEAN Economic Community or the “AEC” which will begin sometime in December of this year. Overall, it was found that the country’s economy has kept up its upward trend. In 2014, the country’s annualized gross domestic product rate reached 6.1%, the second highest in the entire Asia. In the financial industry, the Bangko Sentral ng Pilipinas (BSP), has reported improving numbers in the first two months of 2015. And the tourism industry has also improved with an visitor increase of 3.25% from the previous 2013 number. Most of these visitors are from the United States, Japan, and South Korea. However, despite the economic, tourism, and financial improvements, the Philippines’ is still slowed by its infrastructure problems.
The top real estate developers are preparing for the influx of ASEAN investors and tourists in the coming integration. Many of which are increasing their capital expenditures for real estate expansions whether in the office, residential, retail, or hospitality sectors. Meanwhile, other real estate companies have been expanding to different sectors such as power and transportation.
The office real estate sector continues to be fueled by the demand coming from the business process outsourcing (BPO) industry. Vacancies remain low throughout Metro Manila’s top cities, while monthly rents are increasing.
The supply in the residential real estate sector is diversifying, and a large chunk of the 200,000 residential lots/units coming from socialized and low cost housing categories. Meanwhile, the rental market for condominiums continue to expand and leasing practices are also varying.
Most of the major players in the retail sector continue their expansions while new retail platforms are being introduced to the market.
The gaming industry’s newest casino offering, the City of Dreams, is expected to drive in more tourists. More high-rollers will be looking forward to trying their luck in the Philippines, as Macau’s numbers dwindle due to the high-profile, anti-corruption drive of China.