Skip to main content Skip to footer

Manila Market Intelligence: November 28, 2018


Ikea allots P7B for Philippine store

SM Prime Holdings, Inc is developing a mixed-use building in the Mall of Asia complex to house the largest IKEA branch in the world. It will have a total leasable area of 65,000 sq m and is set to open by 2020. The largest IKEA branch will be as big as the size of 150 basketball courts. Aside from its retail offerings, it will also have a call center and a warehouse to accommodate e-commerce operations in the Philippines. The retail project is expected to generate at least 500 jobs.



During 3Q 2018, about 60% of the condominium units completed in Metro Manila are the smaller studio and 1-bedroom units, with sizes ranging from 16 to 25 sq m.  This supports the viability of IKEA’s entry into the local market. In our opinion, the aggressive completion of condominium projects over the next two to three years should benefit IKEA and other home furnishing brands.   Colliers sees more opportunities in the home furnishing segment especially with the government’s plan to further open retail trade to foreigners.

Belle 9-month income flat at P2.68B

For the first nine months of the year, BELLE Corporation recorded a flat net income of P2.68 billion. EBITDA from real estate businesses rose 8% to P1.79 billion from P1.66 billion in the same period last year. The increase was partly attributed from lease of land and buildings within City of Dreams and sales from real-estate products and property management activities at Tagaytay Highlands and Midlands residential and leisure complex. Its unit Premium Leisure Corporation, through its share in gaming operations in City of Dreams, booked a 30 percent increase in net income from P1.42 billion in 3Q 2017 to P1.84 billion 3Q 2018.



We see Belle Corp., a leisure estate and gaming corporation, benefiting from the continued surge in international tourists.  Colliers is expecting demand for three- and four-star hotels to continue especially amongst the Philippines’ major markets – China, Japan, and South Korea. Colliers is expecting foreign arrivals to reach between 7-7.5 million in 2018 compared to 6.6 million visitors in 2017. The government intends to attract 1.5 million Chinese this year, and we believe that the Bay Area will be one of the major beneficiaries. Colliers sees higher spending benefiting developers of malls, casinos, and hotels in the Bay Area.

8990 Holdings launches leisure unit

Property developer 8990 Holdings is venturing into the leisure sector by launching the 8990 Leisure and Resorts. The new unit has set aside P5 billion for the development of three hotel brands: Adama, a five-star luxury family resort; Kura, a luxury hotel; and Argo, an urban hotel. The hotels and resorts will be developed in key sites such as Cebu, Makati, Davao, Palawan, Boracay, Siquijor, Alabang, Manila, Iloilo, Legazpi, Clark, Lapu-Lapu, Siargao, and Baguio.



Cebu remains as one of the most preferred leisure investment destinations in the country. With the Department of Tourism (DOT) projecting a surge in foreign arrivals following the completion of the second terminal of Mactan-Cebu International Airport (MCIA), local and national developers have started either to bring in foreign hotel brands or to expand homegrown ones in Cebu. Colliers is seeing a similar trend in Metro Manila with developers cashing in on the rising number of international visitors by building three to five-star hotels. In Metro Manila, Colliers believes that hostels that offer group packages will likely continue to be popular among ‘staycationers’, millennials, and BPO workers. Colliers recommends that developers start looking at developing hostels along the peripheries of more established business hubs such Makati, Fort Bonifacio, and Ortigas Center. 



Related Experts

Joey Bondoc

Associate Director



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.

View expert