MANILA, Philippines, Sept. 6, 2013 /PRNewswire/ -- With a GDP of more than 7% over the last four consecutive quarters, the Philippines' robust economic growth is seen to fuel the ongoing boom in the property market for the remaining months of 2013. Local office and residential markets retain a positive atmosphere -- the BPO sector and solid performance of the economy continue to boost the office market while the residential market is supported by the high volume of investors and expatriates moving to the Philippines and high demand from rising needs in nationwide housing.
These are some of the major trends presented in KMC MAG Group's Real Estate Midyear Report released today. The report shows bright prospects for investors, covering the office and residential markets in Manila's top three CBDs: Makati, Bonifacio Global City, and Ortigas.
Among the three CBDs, Ortigas office market has the lowest vacancy rate at 3.6%, while Makati offers the highest prime yields ranging between 7.5% and 11.0% for premium office space. Bonifacio Global City, on the other hand, has the highest prices and yields for residential properties, with an average rental rate of Php 835 per sqm per month and a prime yield between 6.0% and 8.0%.
KMC MAG Group's Managing Director Michael McCullough comments, "The property market in the Philippines will sustain its current performance. The second half of 2013 will be quite similar to the first six months only with added supply. In total, around 340,000 square meters of new office space will be introduced this year, concentrated mainly in Bonifacio Global City,"
"For property investors, the Philippine real estate market's current conditions in the office sector are seen as an attractive landlord's markets due to the high demand coupled with limited supply. We're seeing good yields (8-10%) in Makati, which have been attracting international institutional investors."
"On the other hand, nearly sold-out projects in the Premium Residential sector (The Suites at One High Street by Ayala and The Proscenium by Rockwell) signal high demand for premium residential property markets. In the long run, the mid-range residential markets will continue to grow, supported by the increased purchasing power of the middle class and nationwide housing needs."
KMC MAG Group's 2013 Metro Manila Real Estate Midyear Report can be downloaded here: http://c.kmcmaggroup.com/Philippine-Real-Estate-2013-Midyear-Report.pdf
First Published on PR Newswire, Sept. 6, 2013: http://en.prnasia.com/story/archive/prna_852_1305023_0