MAJOR HIGHLIGHTS: KMC Savills
meets media for Metro Manila Office Briefing 2Q 2017
KMC Savills reconnects with several
members of the press for a round table discussion on the recently launched Metro Manila
Office Briefing for 2Q 2017. After the surprising but
exceedingly good performance of the office market, KMC Savills shares their
expertise on the factors at work and impact it brought to the
KMC Savills Research and Consultancy
Manager, Fredrick Rara, started
off with economic updates. Looking at the macroeconomics overview,
the Philippines' positive GDP growth produced higher
growth prospects. According to Rara,
while we are only second to India now, the Philippines have already overtaken China and Vietnam.
Rara also gave the press a briefer on
the current monetary policy and rebound on foreign investments.
However, he noted that the country dropped 10 notches in the global
competitiveness report. This can be remedied with growing
infrastructure that can raise public spending and positive
improvement of government institutions in the country.
Despite all of this, KMC Savills
Research assured that "the real estate market is healthy". There is
nothing to worry about especially in the office market. Rara reported that Bonifacio Global
City remains to be the largest submarket and should be credited
for its good performance. They are also
looking at Alabang and Quezon City as significant office
submarkets. With the 800,000-office space completion
in the next 12
months, he is confident
that Metro Manila will remain affordable.
KMC Savills Managing
Director Michael McCullough also appeared before the media
to deliver the outlook on the office market. The BPO sector continues to expand
and is expected to grow in the next 5-6 years along with
other higher added value services firms in finance and healthcare.
The online gaming and call center industries continue to be the top
occupants of Grade A offices.
The outlook states that the rent rate
will also continue to "taper off". As the supply grows, McCullough
made it very clear that "landlords have to be creative and tenants
will have a say". In addition, LEED certified buildings are all the
rage in Grade A offices because of its good quality, efficient
lighting and air conditioning. He specifically
mentioned ArthaLand Century Pacific Tower in BGC as
an example of a LEED pre-certified platinum building.
Overall, Michael McCullough informed the media
that this is an exciting time for the real estate market. It was
emphasized that the growing vacancies will be manageable and that
rents will continue to be affordable. Despite the market worries,
he stated that the "Philippines is in a lucky spot" as the "economy is very
strong, one of
the best in Asia".