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Manila Market Intelligence: January 7, 2020

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FINASIA LAND OPENS NEWEST SEAT LEASING FACILITY

NEWS

FinAsia Land Development and Construction Corp.  has opened a 657-seat leasing facility at Robinsons Plaza in Mandaluyong City. According to FinAsia Land CEO Manuel Pangilinan, more businesses prefer short-term contracts especially those based abroad to easily manage operations. The new co-working facility shall cover an entire 3,600 sq-metre (38,700 sq feet) floor along with 40 parking spaces. Among FinAsia’s clients are BPO firms at the Ayala 30th Corporate Center.

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RESEARCH VIEW

As of Q3 2019, flexible workspace accounts for about 2.5% of Metro Manila’s leasable office stock. From 2019 to 2021, we expect flexible workspace operators’ take-up to rise by about 10% per year, increasing the share to about 3.5% by the end of 2021. Colliers believes that the lack of Philippine Economic Zone Authority (PEZA)-proclaimed office buildings is likely to drive the demand for more flexible workspace across Metro Manila due to the continued expansion of outsourcing firms and multinational corporations. The growing number of micro, small and medium enterprises (MSMEs) and the country’s predominantly millennial workforce should also result in more freelance businesses that promote collaboration. Colliers sees these factors contributing to greater flexible workspace demand over the next 12 to 24 months.

12 MULTIBILLION-PESO PROJECTS UP FOR NEDA BOARD REVIEW THIS MONTH

NEWS

The board of the National Economic and Development Authority (NEDA) headed by President Duterte is expected to review 12 projects worth PHP652 million (USD 12.8 million). The projects are in line with the government’s push to spur economic growth outside Metro Manila and usher in the ‘golden age of infrastructure.’ Among the projects lined up by the government are toll roads, railways, bridges, and airports.

 

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RESEARCH VIEW

The government’s plan to build infrastructure projects across the country is in line with its massive ‘Build, Build, Build’ program. Colliers believes that these projects are likely to raise land and property values across the country, especially in urban areas outside the capital region. Aside from decongesting Metro Manila, the airport and railway projects lined up by the government are likely to improve access to second and third tier cities. Based on the project list released by the government, Colliers sees Davao, Bataan, Cavite, Misamis Oriental, Cotabato, and Rizal as among the areas likely to benefit from the implementation of the recently-approved projects. In the near to medium term, Colliers sees the government’s infrastructure push dictating the expansion strategies of developers.

COZY CO-LIVING SPACES SOON TO RISE IN FILINVEST CITY

NEWS

Filinvest Land has expanded its co-living footprint by developing The Crib, a three-tower development along Corporate Woods Avenue in Filinvest Alabang, Muntinlupa City. The first building to be developed is The Crib Tower A, an 11-story building that is designed to cater to millennials. It features common amenities such as free Wi-Fi, lounge area, study area, air-conditioning system and a 24-hour security service. The project is also located near hospitals, schools and malls. 

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RESEARCH VIEW

The construction and rehabilitation of railway and expressways in Metro Manila has resulted in unbearable traffic jams across the capital region’s major roads. This has compelled developers to build co-living projects near key business districts which primarily cater to young professionals who want to live near their places of work but cannot afford to buy or lease out condominium units within the major business districts. Colliers believes that these types of housing are likely to remain popular among employees of both outsourcing and non-outsourcing companies. In our opinion, this is also an opportunity for major developers to expand their presence in the co-living segment especially if they intend to build similar projects outside Metro Manila. Moving forward, Colliers sees a more pronounced development of these projects and developers should start incorporating differentiating features such as childcare facilities and private lounges with strong wifi connection. Over the next two to three years, Colliers sees bulk of new supply coming from key business hubs such as Makati CBD and its fringes, Fort Bonifacio, and the Bay Area.

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Related Experts

Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

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