CPG to open P1-B office building in December
CENTURY Properties Group, Inc. (CPG) will open a new office building in Bonifacio Global City (BGC) in December, expecting the project to generate around P468 million in revenues annually once fully leased out.
In a statement issued Monday, the Antonio-led property developer said the P1-billion Asian Century Center will offer a total of 26,913 square meters.
Located along 27th Street on the corner of 3rd and 4thAvenues of BGC, the building has been accredited by the Philippine Economic Zone Authority (PEZA), granting locators with tax perks. It is also compliant with the United States’ Green Building Council’s Leadership in Energy and Environmental Design (LEED).
As of 2Q 2018, Fort Bonifacio recorded a vacancy of 3.8%, lower than the 4.4% posted in 1Q 2018. Fort Bonifacio has long established its position as the country’s major hub for higher value Knowledge Process Outsourcing (KPO) services, housing firms such as Google and Infor. Other major deals recorded in 1H2018 involve online shopping platform Shopee and flexible workspace operator Figari. Colliers believes that the transfer of Philippine Stock Exchange (PSE) from Makati CBD to Fort Bonifacio will likely entice equity firms to transfer to this business hub.
Rockwell debuts in Laguna
Upscale property developer Rockwell Land Corp. is debuting into Laguna’s robust property market with a joint venture with the Yulo family to develop a 63-hectare mixed-use project in Canlubang.
Rockwell disclosed to the Philippine Stock Exchange on Tuesday that it had obtained clearance from the country’s anti-trust agency Philippine Competition Commission to proceed with a joint venture with the Yulos’ Camelray Property Holdings.
Rockwell will start investing in the Canlubang project by initially purchasing and subscribing to a P450-million worth of Camelray common and preferred shares equivalent to 14.7 percent ownership.
Residential demand in Southern Luzon is partly fueled by the growth of its industrial sector. The Southern Luzon provinces of Cavite, Laguna, and Batangas are the country’s major manufacturing locations and the acceleration of industrial activities is driving demand for residential projects. Colliers believes that the Southern Luzon region will continue to be a major industrial player especially with crucial infrastructure projects such as Cavite-Laguna Expressway and NLEX-SLEX Connector road lined up for completion over the next three to six years. The development of new industrial space should prop up demand for residential projects. Hence, we see more residential developers expanding footprint in the region.
PHL not at risk due to resilient economy
A new economic order is brewing in the horizon, and this is perpetuated by a more nationalistic stance of the Trump administration in the United States. President Donald Trump’s effort to boost employment and protect the largest economy’s share in global trade has resulted in a generally strong US dollar.
Economists fear that the contagion from the ongoing US-China trade war, along with the recent currency crunches in Turkey and Argentina, could spread to other countries, particularly the emerging markets.
The good news is that the Philippines is one of the least affected markets by this emerging trade realignment, given its less reliance on merchandise exports and its large currency buffers in the form of gross international reserves (GIR).
The government intends to post faster economic growth in the next three to six years by enticing more investments thru relaxation of foreign ownership restrictions in key economic sectors such as construction and ramping up the implementation of vital infrastructure projects. There were initial concerns about the country’s property sector overheating. But the central bank has been implementing measures to temper inflation and quell overheating concerns. But for the economic growth to be more inclusive and supportive of a thriving property market, the government must guarantee that policy reforms are in place, and these include the continued granting of both tax and non-tax incentives to ensure that the Philippines retains its stature as an attractive destination for outsourcing and industrial locators; and relaxation of foreign ownership restriction in key sectors such as construction to address delays in the completion of projects.