Low interest rates will continue to fan demand for residential spaces by
as much as 11 percent for this year, according to property consultancy
firm Colliers International.
Mid-priced and low-end
residences will be on the upswing as "demand for that is solid because
of housing backlog," Julius Guevera, associate director of Colliers,
told reporters on Wednesday.
"There are Filipinos who
are able to buy condominiums and houses for the first time because
interest rates are low and developers are making it easier for them by
stretching payment schemes," he added.
For high-end
residences, demand will still come from expatriates who look for quality
high-end condominiums near or within business centers.
“The
demand for the premium segment remained high in the fourth quarter,
pushing vacancy levels below 5 percent in the past three quarters,”
Colliers' recent market overview read.
Growth in office
space will remain robust on the entry of business process outsourcing
(BPO) firms. "Locators for firms have an immediate need for spaces,"
Guevara said.
The hotels and leisure sub-sector,
meanwhile, will be hinged on the growth in the gaming industry,
especially with the rise of Entertainment City Manila in Pasay City.
“Over
15,000 new rooms will be introduced in a span of four years. Roughly
half of this will be located in the upcoming Entertainment City,” the
report read.
Industrial sector
Demand for warehousing is seen to fuel growth the industrial estate sector amid the need to bring goods closer to people,
"We are more optimistic on warehousing and logistics because of the need for spaces for transport of goods," said Guevara.
With
the increase in local and foreign distributorship on the back of
consumption driven economy, Guevera noted, "warehousing has become more
mature."
He also said firms are looking for huge spaces
with access to transportation and good pricing for their transport, but
"vertical warehousing is also viable."
According to Colliers' report, lease rates for warehouses and logistics facilities improved by 2.0 percent.
The
most viable areas for warehousing are situated at the southern tip of
Metro Manila in Parañaque City and fringe areas on the South Luzon
Expressway, said Guevara.
"They [distributors] are
moving outward [of Metro Manila] because residential developments ended
eating up the former industrial land," he said.
Most
industrial lands have been converted to mixed-use developments or
emerging business districts due to need for more office and residential
spaces.
Without the expected uptick in warehousing demand, Guevara said, the industrial sector growth will be flat. — BM, GMA News
source: gmanetwork.com
