New CBDs, a property consultant's solution to traffic
Business World by Daphne J. Magturo, 11-26-2014
It's an advice targeted not at the Metropolitan Manila
Development Authority -- which has the mandate to regulate the use
of thoroughfares -- but rather at local governments, property
developers and potential locators.
KMC MAG named two potential CBDs: Quezon City and the Bay
Rental rates there are cheaper, it said.
Quezon City, which has an average rental rate of P635.4 per
square meter (/sq.m.), has a vacancy rate of 3.5%, "similar to
prime CBDs," KMC MAG Vice-President Yves Luethi said in a briefing
on Wednesday at the Makati Shangri-La Hotel.
"Quezon City is the largest city in Metro Manila, it is the
location of numerous government offices, it is the home of major
broadcasting networks and major educational institutions, and has
an extensive railroad and road network," Mr. Luethi
To make Quezon City a "full-fledged CBD," the government must
establish an infrastructure that connects the subdistricts and
provide public transport options.
Another potential CBD is the Bay Area -- the reclaimed area
near Manila Bay -- which houses the state-run Entertainment City
and the Mall of Asia complex. It has an average rental rate of
P589.2/sq.m. and a vacancy rate of 3.5%, Mr. Luethi
The Bay Area is poised to be a "tourism hot spot," along with
the construction of the Aseana City, the Metropolitan Park of the
Metrobank Group, and the 600-hectare joint Pasay-Parañaque
reclamation project of the SM group.
However, the Bay Area still needs "proper support
infrastructure," including roads, public transport, and health care
facilities, among others.
"We are suggesting developers to further push into those
markets," KMC MAG Head of Capital Markets and Investments Jose
Carmelo J. Porciuncula said.
KMC MAG data showed that the average rental rate in Makati
CBD is P940.5/sq.m.; Bonifacio Global City, P827.3/sq.m.; and
Ortigas CBD, P584.8/sq.m.
Mr. Porciuncula noted that vacancy rates across CBDs are
below 5%, with the Ortigas district the only one with above 5%,
"but still single digit."
"In terms of take up that's actually quite impressive," Mr.
Porciuncula said. "There is still healthy demand, there are no
indications as of now that the office segment has