KMC MAG Group held its Property Briefing for the second quarter of 2015 at the Makati Shangri-La last September 3, 2015, discussing this year's real estate market outlook.
KMC Managing Director Michael McCullough talked about the current trends, challenges and strategies in the Metro Manila and Cebu property markets.
"Most of Metro Manila commercial real estate will come online in Bonifacio Global City," he informed media friends and guests during the conference. "The market is healthy is is not a hundred percent dependent on business process outsourcing companies, with interest seen from traditional companies as well," he added.
Leaders of the full-service real estate firm also discussed the pressing issues that are happening in the Philippine property market. McCullough noted that while prime office costs are still among the cheapest in the Philippines compared to other global cities, there is a need for better infrastructure in both Metro Manila and Cebu in order to foster more international investment as well as to sustain the needs that the current developments are creating.
Meanwhile, KMC Head of Investments Melo Porciuncula discussed the reasons for a decline in the residential market, attributing this to the lack of projects rather than a decrease in demand. In order to increase the number of project launched, he poses the need for smoother processes in availing of tax incentives for the developers.
"On the other hand," he stated, "while there are less residential developments being launched, townships are being built at a record-high all throughout the country."
Other highlights of the discussions include the growth of the new wave cities which was expected two to three years ago, the reasons why the Philippines is experiencing a healthy retail market at the moment, and the benefits of being a consumption driven economy, limiting the effects of external shocks.