MEGAWORLD EXPANDING RESIDENTIAL FOOTPRINT IN MCKINLEY WEST
Megaworld has launched its third residential tower within its Park McKinley West project in Fort Bonifacio. The property developer said prices of units have increased to P265,000 per sq m from P218,000 per sq m a year ago. The units range from 70.5 sq m to 336 sq m for a five-bedroom unit. Among the third tower’s amenities are a swimming pool with its own pool deck, children’s pool, game and entertainment room, yoga room, outdoor yoga deck, function halls, and a fitness center. It is due to be completed in 2024.
Colliers believes that strong demand in the pre-selling residential market has continued to raise residential prices in Metro Manila. Leasing demand remains firm, especially in business hubs that house offshore gaming firms from China. In other parts of Metro Manila, demand in both pre-selling and secondary markets is fueled by outsourcing employees as well as local and foreign residential investors. In our opinion, developers should continue highlighting features of their projects such as landscaping, retail options, and accessibility. Meanwhile, investors should cash in on the potential for capital appreciation of condominiums in light of planned rail projects that should improve connectivity.
SEDA BGC COMPLETES EXPANSION WITH TOWER 2
Seda Bonifacio Global City (BGC) has completed its expansion, raising its rooms to 521. The expanded Seda BGC now has a ballroom that can accommodate 300 people. The hotel’s expansion is part of Ayala Land Hotels and Resorts’ P8-P10 billion expansion program. The company is also planning to open Seda Residences Makati (293 rooms) and Seda Cebu IT Park (214 rooms) this year. Due to be completed in 2020 are Seda Manila Bay Aseana City (350 rooms) and the second tower of Seda Nuvali (206 rooms).
Colliers sees the demand for hotel rooms in Metro Manila being driven by the Philippines’ traditional visitor generating markets such as South Korea, United States, China, and Japan, which account for about 60% of the country’s total foreign arrivals. In our opinion, the demand among three- and four-star hotels should be sustained by the rising popularity of "staycations" and growing domestic travel market. National players such as Ayala, Filinvest, 8990, Rockwell, and Vista Land have been tapping the growing demand by developing their own hotel brands. We also see foreign brands opening over the next two to three years including the new Mandarin Oriental in Makati CBD, Hotel Okura in the Bay Area, and Ibis Styles hotel in Araneta Center. Colliers sees sustained foreign arrivals moving forward given the government’s thrust to modernize airports and the Tourism department’s continued marketing efforts.
DYSON SEEKS PIONEER-STATUS INCENTIVES FOR PHILIPPINE-MADE PRODUCTS
The local unit of Dyson Electronics is targeting pioneer status from the Philippine Economic Zone Authority (PEZA) for its Philippine-manufactured hair dryers, vacuum cleaners and motors. The firm’s products are manufactured at Camelray Industrial Park II in Calamba, Laguna. Once granted pioneer status, Dyson will enjoy six years of income tax holidays (ITH).
Dyson’s expansion in the Philippines indicates the country’s attractiveness as an investment hub in the region. In our opinion, the proposed construction of a new cargo rail project connecting Manila port and Southern Luzon will likely play a crucial role in easing transportation of goods between the country’s capital and Luzon’s primary industrial hub. Colliers believes that similar expansion plans from locators will result in greater industrial space absorption in the Cavite-Laguna-Batangas area. But with limited new industrial supply in Southern Luzon, several locators are now looking at the viability of manufacturing operations in the Northern Luzon provinces of Pampanga and Tarlac, which are located about 80 to 110 kilometers north of Manila. The corridor will likely benefit from the planned construction of cargo and passenger rail projects as well as the expansion of Clark International Airport.