QC, Bay City as new business districts
Philippine Daily Inquirer by Marlet Salazar11-28-2014
KMC MAG Group, a real estate services firm based in the
Philippines, sees Quezon City and Bay City area as the next
business districts with developers exploring their potential.
Yves Luethi, vice president of KMC MAG Group, noted the
"positive movements happening in both locations." The largest city
in Metro Manila has shown a lot of potential, given the size,
presence of government and educational institutions, major
(broadcasting) networks, and road and railway network.
"Ayala (Land Inc.) is leading the pack with the development of
Vertis North," he said. "Then there's AyalaUP Technohub and the
upcoming AyalaUP Town Center."
"In terms of average rental rate," Luethi said, "it's already
(slightly) higher than for example in Ortigas or Makati."
Developments at Bay City, the reclaimed area near Roxas
Boulevard, have been ongoing since the building of Mall of Asia. At
present, the area is home to different business parks like Aseana
Holdings Inc. (by Aseana City), Future City (by SM), and
Metropolitan Park (by Metrobank). The area is seen not only as a
business district but also as an entertainment city. The
developments are geared toward the market of hotel and
These developments in the two areas are hoped to help decongest
Metro Manila, especially critical business districts Makati City
and Ortigas. The group also took notice of efforts to decongest
Metro Manila with the development of special economic zones in
nearby provinces such as Cavite, Batangas, and Laguna.
"A lot of developers are booking at alternative areas and this
will help in decongesting Metro Manila eventually," he added.
Spatial planning is a method used by the public sector to manage
space and development to prevent decongestion. It can be applied in
land use, urban, regional, transport and environmental
The group said that "the new business districts will need to
move away from building because the demand is there or because the
workforce is there and instead move toward managing the diverse
spatial needs of various stakeholders."
The transportation problem in the Metro Manila has also affected
the industry both good and bad. Good that the workforce who have
purchased houses in nearby provinces opted to rent in the city to
avoid traffic. Bad in the sense that infrastructure is always a
critical factor in any industry.
Like other suggestions in the past, the group sees that "setting
up" other urban areas in locations outside Metro Manila may
contribute to the decongestion. This is where spatial planning
comes in. Spreading out offices and government agencies also
spreads out the number of people.
The group also said that the government needs to focus in
building the necessary infrastructure. It quoted the World Economic
Forum 20142015 Global Competitiveness Report where the Philippines
ranked low in terms of transport infrastructure: seaport is at
101st and airport is at 108th.
The support infrastructure, the group noted, plays a vital role
in the manufacturing and services sectors as these contributes 70
percent to the country's GDR. These industries need better roads to
deliver goods and commodities.
While the group's outlook is positive, KMC MAG Group said that
the country needs to move fast if it wants to catch up with