Developers of luxury residential buildings, with units costing at least P15 million each, are building more projects in Metro Manila as prices continue to rise toward Singapore’s level.
JLL Philippines chairman Lindsay Orr said the fast growing upper middle class developed a spending force to acquire properties near luxury or at luxury levels.
“There is more or pent-up demand for luxury spaces until the next five years. In fact, Park Central, the residence building the Ayala Group is building at the previous spot of Mandarin Oriental is going by at Singapore prices, one of the most expensive luxury residences to rise in Makati CBD [commercial business district],” Orr said in a news briefing that announced the holding of the 2017 Philippine Property Awards.
Orr is the chairman of the 5th Philippine Property Awards 2017.
Recent market estimates placed the luxury residences entry level price at P15 million per unit. A unit at Park Central was quoted at a minimum of P32 million or P300,000 per square meter.
Property developers said demand for condominiums and office space was still very high as half of the 2017 projects were already pre-committed.
Net Group executive vice president Raymond Rufino said his company was very bullish on the property sector particularly on premium office developments.
“We cannot compete with the bigger players like Megaworld and SMDC [SM Development Corp.] on regular office space. So we thought we’ll go for the higher price office in a better environment within a premium location. And now that we’ve run out of space at the BGC, we’re looking at developments outside BGC,” he said.
Net group has seven buildings in Fort Bonifacio that are almost 100-percent leased-out.
Megaworld Corp. also cited its strong presence in Fort Bonifacio, where it had a land bank of 105 hectares and several developments.
Orr said the concern over a bubble in the local real estate sector was farfetched, despite the expected entry of 1 million square meters in 2018.
“The fact of the matter is that demand is increasing as well. Over the next three to four years, you’re going to see supply and demand leveling which bodes well for the sector particularly. All in all, the prognosis on the real estate market is good,” he said.
The 5th Philippine Property Awards 2017 expecting more entriesbefore the deadline of nominations on March 3. It aims to recognized the Philippines’ best property developers and developments in established and emerging property markets of Mega Manila, Metro Cebu, Metro Davao, in addition to popular and emerging resort destinations and BPO offices across the country.
It is organized by Property Guru Group, Asia’s leading online property group used by more than 16 million property buyers.
