DATA : Peso // Makati Property Price Data, News & Comments

[drbubb]

A GUY FROM WALES... talks about why he lives in the Philippines

 

EXCERPT:

3. The country is on an upward climb.

I’ll admit – prior to visiting the Philippines – I had very particular expectations on what the country would be like. I expected the cities to be much less developed, owing to the media coverage I got of the Philippines after Typhoon Ondoy (Ketsana).

(Image source: adventureinyou.com)

Yet the country is nothing like I imagined. In fact, where I live and work now – Bonifacio Global City – can be mistaken for any other metropolitan part of my home in Wales. Some might say that areas like BGC represent just a small part of the Philippines, but I would beg to differ.

As someone who also currently works in Philippine real estate, I know that there are dozens of more townships just like BGC arising all over the country and will see completion in the next few years. Real estate is booming across the Philippines, and for foreigners who are looking to settle in a home that offers the same, if not, better lifestyle similar to theirs overseas for less money, it’s a big factor.

4. The Philippine’s real estate industry is in the midst of a major historical change.

The prosperity that real estate brings to the Philippines will eventually cascade to more and more Filipinos, such as BPO workers, to own their homes within the next five to ten years.

This change is significant because home ownership is one of the most direct paths toward financial independence and success.

You don’t even need to take my word for this fact. Just look up. The Metro Manila skyline changes almost on a daily basis, as the construction of new condominiums is always ongoing and never-ending. Yes, a significant portion of those condos will be filled up by foreigners and other outside investors, but a large portion of these units will also be bought up by hardworking Filipinos who aspire to have a better life.

Conclusion

In the same way that the Philippines has fulfilled my dream to a gorgeous, tropical country as my home, I hope that the coming years will see more Filipinos realizing the same, albeit permanent dream. I am saying this because I truly believe that this goal is within the reach if there is heart involved. I’m seeing more homebuyers and brokers taking this leap of faith in shaping what should our communities and way of life should be, and I want to see more people following suit.

It may be scary to take that leap of faith, but knowing that I am now in the position of helping others realize that dream of being a homeowner, I simply have no regrets. I am very grateful for being able to live here and I look forward to seeing more homeowners in the years to come!

==

> more: http://www.zipmatch.com/blog/chose-to-live-in-philippines

[drbubb]

The 16 Best Condo Lobbies in Makati

 

#1: Discovery Primea

 

#4 : Knightsbridge Residences, Century Properties

 

#6 : One Roxas Triangle, Ayala Premier

 

#7 : Jazz Residences

==

> http://www.zipmatch.com/blog/metro-manila-condo-lobbies

[drbubb]

The Rise is trying something New with its restaurants

 

'Hipster' condo soon to rise in Makati

ABS-CBNnews.com : 04/14/201

 

MANILA – Are you a hipster or do you know someone who is? You might want to take a look at this property which will soon rise in Makati City.

Shang Properties’ The Rise is located at the heart of northern Makati – dubbed “Noma” – the same area dotted with obscure cafes and watering holes, unique restaurants and art galleries.

Set to be completed in 2018, the condominium project looks anything but common. Instead of the usual rectangular shape, The Rise features a building that expands into three “wings” to let guests from each unit enjoy a different view of the city – they can choose from the Makati skyline, Bonifacio Global City, Manila Bay and Sta. Mesa, among others.

 

This model shows the unique shape of The Rise. Photo by Karen Flores, ABS-CBNnews.com

The units have a standard layout but certain parts of the building are triangle-shaped, targeted at those who are looking for something a bit more “creative” – in other words, hipster.

“This is a very hipster project and we love it that way,” Mike Arroyo, recruitment and training head of The Rise, said during a media event launching the real estate project.

“We’re targeting a young market… It’s an economic strategy because it’s a growing market. We want to do something very relevant to our times,” he added.

 

Perhaps the most “hipster” feature of the soon-to-rise condominium is the planned retail and restaurant space, which will feature “one-of-a-kind” tenants. Don’t expect to see any fast-food joint, popular restaurant or café chain or convenience store here, said Arroyo, as it will be nothing like Manila has ever seen.

 

Instead, The Rise will tap young chefs and businessmen to come up with “unique” and “cool” ideas that match the condominium’s overall concept.

==

> more: http://www.abs-cbnnews.com/lifestyle/04/14/15/hipster-condo-soon-rise-makati

 

(Profit-takers at The Rise are now asking...):

"available for resale 1BR units" :
28E west - 28.01 square meters.
56m north - 28.01 square meters
P 3.5 Million , that's: PHP 125k psm > on SSC thread

[drbubb]

(Nearby is a not-long-ago completed, Belton Place... popular with the Air BNB crowd):

 

 

Belton Place

Floorplan

 

(2012 pricing): PHP1.558mn / 15sm = Php103.9k psm

[drbubb]

(great, another mall)

 

Ayala Land to build 'huge' shopping mall in Parañaque

Rappler - ‎13 hours ago‎

The company is now finalizing the master plan for the 9-hectare parcel, Ayala Land president Bernard Vincent O. Dy said in an interview at the sidelines of the company's P7 billion ($158.10 million) bond listing with the Philippine Dealing and Exchange ...

. . .

The property is located right across the new City of Dreams Manila, a casino and hotel complex also owned by the SM group in partnership with the Melco Crown group of Macau.

The entry of the Ayala group in Entertainment City effectively brings together all the country’s biggest property developers in the area,

[drbubb]

Property Zooms Ahead in Philippines (with a mammoth supply addition in 2015)

Overseas workers, employees in outsourcing fuel residential demand

ENLARGE

New residential and commercial developments are springing up in Manila. PHOTO:TREFOR MOSS/THE WALL STREET JOURNAL

By

TREFOR MOSS

April 7, 2015 / 1 COMMENTS

MANILA—Neighborhoods inspired by Beverly Hills, fast-rising office towers and swanky malls resembling landmarks like St. Mark’s Square in Venice: It might sound like China circa 2005, but this is the Philippines in 2015.

The real-estate sector here is enjoying a boom as new property floods a market usually stifled by low prices and developers notorious for completing projects years behind schedule.

Now, supply and demand are rising fast as the national economy grows reliably at 6% to 8% per year. Property values are increasing steadily, drawing investors. And cash-rich developers, backed by some of the country’s biggest conglomerates, are having an easier time delivering on their promises.

In a metropolis clogged with traffic and where millions still live in slums, Manila’s affluent buyers particularly favor newly built “townships”—self-contained districts where homes, offices, shops and schools are packaged together in tidy, linked communities, said Jericho Go, senior vice president at Megaworld Corp., the real-estate subsidiary of the Alliance Global Group.

ENLARGE

“Why would you want to go out,” Mr. Go asked, “when everyone else wants to come in?”

Megaworld is doubling to 20 the number of townships in its national portfolio. They vary in size: 18 years after it was launched, Eastwood City, Megaworld’s first township in Manila, has a residential population of about 30,000 and a working population of 70,000.

With other developers pursuing expansions, market records are tumbling. Last year, an unprecedented 41,810 condos valued at more than 2 million pesos (about $45,000) entered the Manila market, according to real-estate consultancy Jones Lang LaSalle, which expects almost 59,000 in 2015. The Manila office sector also is surging: A record 835,800 square meters of new Grade A space will come on stream this year, with almost 1 million expected in 2016, according to Jones Lang LaSalle.

. . .

While foreign buyers are showing more interest, the growth is being driven mainly by two groups of Filipinos: the 11 million overseas Filipino workers who last year sent home $24.3 billion in cash, plowing about $7 billion of it into property, according to Colliers, and the 1.1 million people working in the country’s flourishing outsourcing sector.

Overseas workers are “50% of the entire demand” for residential purchases, Mr. Guevara said. Outsourcing employees, many of whom must relocate to urban centers, are driving the rental market, just as their companies are fueling the explosion in office space, he said.

> more: http://www.wsj.com/articles/property-zooms-ahead-in-philippines-1428423295

[drbubb]

+++ CONTINUES +++

 

 

McKinley Hills in central Manila, one of Megaworld’s most prestigious townships, is nearing completion after eight years of construction. The finishing touch will be the opening of the Venice Piazza and Grand Canal Mall later this year. The mall will join the residential and commercial buildings, international schools and sports facilities already in place.

But that will only be the company’s cue to press on with the new $1 billion McKinley West “ultra high-end” township development next door.

“We see few risks,” Mr. Go said. “We sell 70% of a new development before turning soil—that typically takes us less than a year—and 70% of people pay cash.” McKinley West’s residential lots sold out within a month, the company said.

SM Development Corp., the real-estate arm of conglomerate SM Investments Corp., has prospered in a different market tier. Its residential sales rose 37% in 2014, according to Executive Vice President Jose Mari Banzon.

The company’s properties are typically priced at 2 million to 3 million pesos. “We just find the middle market to be bigger and more stable,” Mr. Banzon said, “People in that market segment have the money, and their credit is good.”

There are also opportunities in social housing—properties priced at less than 1 million pesos—for developers willing to trade margins for scale, Mr. Banzon said. “This country had a housing shortfall of 3.9 million in 2013,” he said. “It will be 6.5 million by 2030.”

“Is there a risk of a bubble forming?” Mr. Guevara asked. “The important question is: Are developers addressing actual demand? In this case, it’s safe to say that they are.”

[drbubb]

SHORT Q&A - this was originally posted on another chatboard

==========

 

Thanks, G---.

Those are all relevant questions, which I looked into thoroughly before buying my condo.

 

"What about other issues such as:"

 

-ownership by foreigners

(foreigners cannot own land, but they CAN OWN up to 40% of the condos in a residential or office project)

 

-legal issues related to ownership

(Pretty straight forward, if you stick to buying condos. There are some ways that you can own land, by setting up a 40% owned corporation, etc. But those are too complicated for me. And I do not want to search for a Filipino partner.)

 

-capital gains and other taxes

(these are high... but manageable. For instance, there is a 6% "capital gains" tax that you pay when you sell, if you sell at a profit. Confusingly, this is 6% of the Sales price - ie 6% of the Gross amount, not 6% of the profit. Fortunately, my property seems to have appreciated more than this in the first year. There are taxes on rental income too, depending on the size of the income.)

 

-stamp duty

(lower than HK)

 

-management fees

(Though property prices in Manila are like 1/5th to 1/10th those of HK, monthly mgmt fees are "surprisingly" high in the better run properties in Makati area - like 75% of HK. Electricity prices are also higher than HK. I may live in my place when it completes in late 2017, so I may not need to find a tenant. If I do rent it out, there are various options that I am exploring. My place should be very easy to rent, given the prime location.)

 

-typhoons and build quality

(Typhoons are more of an issue in Philippines than HK, but they are issues in both places. The biggest issue seems to be flooding. So take care that you do not buy in a flood area. The issue is height above sealevel, and the capacity of the drainage system. As for build quality, stick to one of the Top 3 or 4 builders. I bought from Ayalaland, which has a first class reputation. There are two or three others that are also considered reliable. But look into reputation before you buy. A first class builder should also be able to deliver to you, a condo without any Title issues.)

 

If you want to know more, send me a Personal Message.

I may even be able to invite you to a presentation by Ayala in HK, at the end of May... if there is still room

[drbubb]

Condo sizes shrinking in Metro Manila

ABS CBN News-1 May 2015

MANILA, Philippines - Sizes of condominium units being offered in Metro Manila are shrinking along with the land available for development in the country’s capital region, a global online property portal revealed in its latest report. Lamudi Philippines said 40 percent of Metro Manila’s for-sale and for-rent condo inventories at present have floor sizes measuring 50 square meters or smaller, a size which many would consider as a “shoebox apartment.”

“It seems that going smaller is the trend now for Metro Manila’s condo market,” Lamudi Philippines said. The report stressed that a condominium project that squeezes in 200 units per tower was “virtually unheard of” back in the 1990s. “Now, it is becoming the norm, with some developers launching projects with more than 30 condo units per floor or approximately 1,200 condo units for a 40-story high-rise,” the online property platform said.

Lamudi’s study found that Quezon City has the greatest portion of shoebox condos with 72 and 67 percent of the city’s for-sale and for-rent units, respectively, having floor areas measuring 50 square meters or smaller.

In Makati, 31 and 34 percent of for-sale and for-rent condos, respectively, are smaller than 50 square meters. For-sale and for-rent condos, which are smaller than 50 square meters in Taguig, meanwhile, are 26 and 32 percent. “Cost-wise, smaller does not necessarily mean cheaper, at least when you look at the per-square meter prices of these apartments,” Lamudi said.

In Makati, the average asking price for small condos is P132,073 per square meter, slightly lower than the city’s average of P139,503 per square meter, the report said.

Lamudi said the average cost for smaller condos in Quezon City and Taguig stand at P123,431 per square meter and P118,634 per square meter, respectively, compared to the cities’ averages of P111,241 and P125,032.

2/

Foreigners snap up PH condo units / "new" Concept: Versailles Stay

Manila Standard Today-2 May 2015

This is a new concept, a new market,” she says. ... At One Central ...Gil Puyat Ave., H.V. Dela Costa and Geronimo Streets in Salcedo Village, MakatiCity.

. . .

She decided to talk to the foreign owners of the condo units and broached the idea of her company managing the units for short-term and long-term lease in exchange for rental dividend. Her proposal was warmly accepted, and the result is Versailles Stay, the first brand of rental management for high-end residences in the Philippines. “We offer to manage the properties that they will purchase. Because they are not here, no one will maintain the units, no one will pay taxes and the association dues on time. That’s why Versailles Stay was born,” she says. “I think we are the first.” “We just put a name for the service that we want to offer, which is rental management and property care. We have decided to use the name Versailles Stay. This is a new concept, a new market,” she says. Sumida describes Versailles Stay as a rental management solution for fully furnished, high-quality residences offering dependable property care for unit owners and developers and value-for-money, convenient stay for guests.

Premium Prices

Perez says an overnight accommodation at Versailles Stay ranges from P4,000 to P5,000, inclusive of breakfast and WiFi connection. Food is served by Manila Catering, which is the exclusive meal provider of Cebu Pacific and Air Asia.

“We even give discounts. Forty percent of our clients right now is corporate, 40 percent, walk in. The rest are online travel agents,” he says.

. . .

Perez says Versailles Stay started operation in August 2014. “We started third quarter of last year. We opened with only 10 units. A month later, we added another 10, and a month later, another 10. Now, we have 50 units. The last 10 units were added this month. The average take-up right now is 40 to 50 percent. Our target number of inventory is 100 in this building alone, maybe by the third quarter this year. It really depends on take-up,” he says.

. . .

“We manage 200 units, but only 50 of the 200 are being operated as dailies or short-term rents. The others are being leased out, for one year to two years,” he says.

Perez says the Versailles Stay serves the interest of developers, unit owners and guests.

“Because of Versailles Stay, the developer has an easy time to sell units to prospective buyers. The units that we manage here are owned 100-percent by foreigners. Then, we manage these units. We take care of servicing their association dues. On top of that, we deploy our staff in the lobby as well to make sure those who come to us are guided and introduced properly. In a sense, we serve as a sort of second line of defense for the developer. We provide extra security for them,” he says.

“On the unit owners side, why would they buy here in the Philippines, when the most number of times they would probably visit is twice a year? We make sure that we furnish the units. We maintain the units. Most importantly, we find tenants for the units. They benefit from recurring rental dividend. Actually, all they have to do is just wait every month for the rental dividend,” says Perez.

website: http://www.versaillesstay.com/

(Glut Talk is back - not surprisingly, with the big jump in supply in 2015, of 25% - see post #101)

3/

Condo glut in Metro Manila

Now it can be told -- or at last openly, fearfully spoken about. Bloomberg reported late last week that “the capital region, Metro Manila, is in the grip of a building boom -- led by developers such as Megaworld Corp. and Ayala Land, Inc. -- that will add a record number of apartments over the next two years... threaten(ing) to lead to a glut that will weigh on investors.”

March 22, 2015

Developments have supplied more than 500,000 units built from 2001 to 2013 in the National Capital Region (NCR/Metro Manila) alone. The majority of Metro Manila condos are in Makati City, about 80%, according to the Home and Land Use Regulatory Board (HLURB) -- judging only on licenses to sell issued.

Now the Bloomberg article in BusinessWorld worries seriously about the glut in Metro Manila, where an estimated 55,000 finished residential units will come into the market this year, according to brokers CBRE Group Inc. Construction will begin this year in NCR on 130,000 condo units, KMC MAG Properties said. Will there be more buyers? Predicted unsold inventory will bring down lease rates to 3%-4% this year, down from the average 5% since 2011, according to KMC MAG research. Re-sales in time of glut will mean sacrifice on pricing.

Yet spending by property companies will rise 18% to more than P300 billion ($6.8 billion) in 2015 from last year, according to broker Savills Plc. Ayala Land Inc. is reported to be spending P100 billion this year. Robinsons Land Inc. will plunk P17 billion into property development, up 20% from last year. SM Prime Holdings Inc. has budgeted P70 billion for property in 2015, 17% higher than last year. Megaworld will spend P230 billion in the next four years to build townships across the country. Real estate groups and brokers warned that “developers are now prepared to push their pricing for development land by 20%-30% over previous highs.”

“At least 70% of our projects are sold in the first year of pre-selling, and that’s the norm for us; there hasn’t been a change,” according to Megaworld SVP Jericho Go, as quoted in BusinessWorld. There’s that word “pre-selling” that is the spoiler to the emerging plot of a likely bubble burst in the property market. The developer, given a go-signal by the HLURB upon approval of the project, is allowed to pre-sell condo units in the proposed development to the public, even before construction has begun. What does this mean for buyer and seller?

To the buyer, he/she has paid for the unit, either in cash or installment, and has presumably locked in on the pricing based on today’s costs. Of course, it must be acknowledged that seller’s assured profit after construction costs until delivery will have been tucked in the selling price. A critical assumption for the buyer would be that market price for the unit bought in pre-selling would be a resale price upon delivery that would have reflected at least a return of principal plus the cost of money for the five years construction waiting time. What if there is no appreciation of value of the property upon delivery?

==

> more: http://www.bworldonline.com/content.php?section=Opinion&title=condo-glut-in-metro-manila&id=104829

[drbubb]

Just out !

Colliers Q1-2015 report: Shows +1.97% Gain, Qtr.onQtr

> http://www.colliers.com/-/media/Files/Marketing%20Reports/Knowledge_Q1_2015B.pdf

RENTS

1Q /2014 : 0,810 : +0.62% : +10.2% / 0,555 - 1,065 / 0,610 - 1,020 / 0,725 - 1,025 :

2Q /2014 : 0,820 : +1.23% : +5.13% / 0,560 - 1,080 / 0,625 - 1,025 / 0,740 - 1,030 :

3Q /2014 : 0,830 : +1.22% : +3.75% / 0,570 - 1,090 / 0,630 - 1,035 / 0,790 - 1,090 :

4Q /2014 : 0,838 : +0.96% : +4.10% / 0,575 - 1,100 / 0,640 - 1,045 / 0,750 - 1,055 :

1Q /2015 : 0,848 : +1.19% : +4.69% / 0,578 - 1,118 / 0,660 - 1,050 / 0,755 - 1,080 :

Qtr /Yr. : Mak-Mid. QonQtr : YronYr / Lo - Makati - H / L-Bonfacio-H / L-Rockwell- H /

Makati Yield 3br? : 1Q/ 2015 : 0,848 x12 = 10,176 / 147,350 : 6.91% Yield (prev. 6.96%)

=======

1Q /2014 : 136,533 : +1.20% : +10.32% : 91,715 - 181,350 : 103,200 - 163,150 : 110,240 - 175,685 :

2Q /2014 : 138,083 : +1.13% : +07.27% : 93,000 - 183,165 : 104,400 - 165,465 : 111,345 - 172,070 :

3Q /2014 : 142,750 : +3.38% : +08.10% : 98,000 - 187,500 : 108,000 - 170,000 : 115,000 - 178,500 :

4Q /2014 : 144,500 : +1.23% : +07.11%: 100,000- 189,000 : 110,000 - 180,000 : 117,000 - 180,000 :

1Q /2015 : 147,350 : +1.97%: + 7.92%: 102,500- 192,200 : 113,000 - 179,500 : 119,000 - 189,000 :

Qtr / Yr. : Mak-Mid. QonQtr : YronYr / Low - Makati - H / Low -Bonfacio- H / Low -Rockwell- H /

 

Comments - RESIDENTIAL DELAYS !

Four residential condominiums were completed in the major Metro Manila CBDs during the first quarter, delivering 1,649 new units across major business locations in Metro Manila. However, construction delays at several condominium projects will push back the bulk of the expected new supply for 2015. By year’s end, 8,253 residential units will be completed. With few new developments to absorb the still strong demand, rents and resale prices are expected to further appreciate.

OFFICE

+ Fort Bonifacio has established itself as the next central business district after the Makati CBD after attracting numerous multinational companies to locate in the area.

+ Capital value growth in the Makati CBD outpaced rent growth during the period, as landlords considered the sudden uptick in average land values two quarters ago. Premium office space averaged PHP158,000 per sq m, a 2.4% QoQ increase. Grade A office values, much like rents, appreciated the fastest at 4.1% QoQ...

[drbubb]

CONDO SUPPLY Situation : An update

Colliers, Q1 report was just released:

"...Construction delays at several condominium projects will push back the bulk of the expected new supply for 2015. By year’s end, 8,253 residential units will be completed. With few new developments to absorb the still strong demand, rents and resale prices are expected to further appreciate. "

(see just prior post, #160)

 

OLD : Shows completions clustered in 2015, especially for Makati (also see post #101)

 

Location : End2013 / 2014F: +Pct. / End2014/ 2015F: + Pct. / 2016F : + Pct . / 2017F: + Pct. / 2018F
=======
Makati - : : 17,656 / 0,454: + 2.57% / 18,110 / 4,608: +25.4% / 2,017: +11.1% / 1,485: +8.20% / 1,072
B.G.C. -- : : 17,513 / 1,914: +10.9% / 19,427 / 5,433: +28.0% / 4,895: +28.0% / 2,979: +15.3% / 1,010
Ortigas-- : : 11,921 / 1,711: +14.4% / 13,633 / 2,756: +20.2% / 1,227: +9.00% / 0,573: +4.20% / 0,422
Rck+Ewd :: 10,548 / 1,159: +11.0% / 11,706 / 0,000 : +00.0% / 0,908: +7.76% / 0,346: +2.96% / 0,914
Total-of-5: 57,638 / 5,238 : +9.09% / 62,876 /12,797 +20.4% / 9,127: +14.5% / 5,383: +8.56% / 3,628

Location : End2013 / Old.2014: Differ. / End2014/ 2015F: + Pct. / 2016F : + Pct . / 2017F: + Pct. / 2018F
Makati - : : 17,656 / 18,110 : +0,454/ 18,564 / 1,768: +9.52% / 4,857: +26.2% / 1,485: +8.20% / 1,072
B.G.C. -- : : 17,513 / 19,427 : +1,914/ 21,341/ 3,729: +17.5% / 6,599: +30.9% / 2,979: +15.3% / 1,010
Ortigas-- : : 11,921 / 13,343 : +2,000/ 15,343/ 2,756: +20.7% / 1,227: +8.00% / 0,573: +4.20% / 0,422
Rck+Ewd :: 10,548 / 11,706 : +1,160/ 12,866 / 0,000: +00.0% / 0,988: +7.68% / 0,346: +2.96% / 1,124
Total-of-5: 57,638 / 62,876 : +5,238/ 68,114 / 8,253: +12.1% /13,671:+20.1% / 5,383: +7.90% / 3,628

Apart from the delays, the "New" data starts from a higher base - (I'm not sure why- a Colliers recount?)

 

The 9.5% rise for Makati in 2015, looks manageable, and so does the 12.1% overall rise-

especially considering that many of the new completions are smaller studio and 1BR flats.

However, 2016 will be more of a challenge, with more than 20% overall, and a very large

number of completions in the "blue chip" Makati and BGC areas. There may be some iindigestions

issues for the market then, especially if interest rates are higher then, and there is some

slowdown in the global economy. Having said that, The Philippines market has thus-far shown a nice resilience.

And there could be further delays in 2016. This seems to be a feature of many modern property markets.

 

BGC may be an area to watch, since completions there will be heavy in 2015-17, and there are some real

transportation issues for those who live in BGC and work in other areas, such as Makati.

[drbubb]

Whistling past a Building site? (which still contains one of Manila's largest cemeteries)

 

 

The Manila South Cemetery, which measures 25 hectares, is one of the largest cemeteries in Metro Manila.... and though located within Makati, it is legally an exclave of Manila as part of San Andres, Manila.
> wiki: http://en.wikipedia.org/wiki/Manila_South_Cemetery

 

News items back in 2008 suggested that the cemetery near Makati would be closed within 5 years:

 

" If you pass by the South Cemetery, there's a signage there saying, if I can recall it right, that the Makati City government will be closing the cemetery within a period of 5 years (not sure about the number, it maybe 3 years). So practically, they will be opening up the South Cemetery area, which is a huge area, for investments. Now as to who will be brave enough to build over a former cemetery, that's another question."

> 2008 : http://www.skyscrapercity.com/showthread.php?t=1343265

 

So what happened:

+ The Jazz with 5,347 units got built, and
+ Lerato with 1,289 units
+ Alphaland's 0,494 units
More recently:
+ The Rise with 2,822 units was launched by Shang Properties (2018 completion) not far away, and
+ The Air with 3,642 units (2020) has also been planned // ..... Circuit & South Ave : #2 :

 

 

Now Ayala is aiming to improve the transport links to The Circuit, its new area of Makati.

But the planned subway to BGC has been delayed, with no bidding approval prior to 2016:

> http://www.skyscrapercity.com/showthread.php?t=1723515&page=54

==

[drbubb]

The Air Residences

:

 

Air Residences is the next project of SM Development Corporation in Makati City.

After the success of Jazz Residences, SMDC Newest Condominium the Air Residences is now available and accpting reservation. It'st located few minutes walk to Ayala Avenue.

SMDC's FIRST PREMIER BRAND. It boasts on the modern contemporary design inspired by ARMANI HOTEL (DUBAI)
Own the very first SM Premier Brand of SMDC at the successful part of Makati North.

 

 

> slideshow : http://makatiairresidencessmdc.blogspot.hk/2014_09_01_archive.html

 

Rise and the Air - a possible configuration

> source: http://www.skyscrapercity.com/showthread.php?t=1723515&page=36

 

 

Some Videos about The Rise, the neighboring property to The Air

 

HOME BASE Season 13 Episode 1- THE RISE- MAKATI

https://www.youtube.com/watch?v=kvzhwtqw-UQ

Published on 21 May 2015

 

 

The Rise - Makati, Philippines (Pilip Inc) Part 1

Published on 13 Mar 2015

 

Part-2:

[drbubb]

Cross Currents continue in the Philippines property market...
Is there a Bubble or not?

==
The sizable price rises, and growing supply suggest there might be.
(Though HK has been talking about its own property bubble for years, with greater price increases.
But the so-called "bubble" has gone on and on, in HK.)
And the Philippines has some special factors - strong demand from the very bouyant OFW segment,
and a very conservative financing structure - end users usually hold and hold when prices weaken

(think: China), when they do not have excessive bank debt, and foreclosure pressure from bankers

 

/ 1 /

> http://nomadcapitalist.com/2014/07/14/overheating-philippines-condo-market/

 

The overheating Philippines condo market / July 2014

it’s hard to see how such a bubble isn’t forming today.

Quite simply, everyone in the Philippines is going ga-ga over real estate, both to buy and to rent.

For instance, I recently looked at several apartments for rent in Manila’s expat-friendly Makati City. In Vietnam, a few people have made a small business (emphasis on “small”) out of “apartment arbitrage”: renting apartments through local Vietnamese tenants, then sub-leasing the properties to western expats at the inflated prices such expats typically pay.

I was curious to see if there was an opportunity to replicate this strategy in the Philippines for someone who wanted a “side hustle” to support a lifestyle in the Philippines. I was also investigating whether there was an opportunity to engage in short-term sub-leasing on tourist websites like Airbnb.

(Note: I’m not a fan of using Airbnb as a traveler, but do find it intriguing as a place to lease an apartment, especially since prices there tend to be somewhat aggressive.)

The answer to both of those questions was “no”. Quite simply, everyone in the Philippines is in the “real estate always goes up, never down” mindset and property owners are buying the arrogant sales pitches been flung at them, only to fling at back at prospective tenants when they go to lease out their overpriced apartments.

First, let’s set the stage. Most of the building is going on in Manila. Foreigners tend areas like Makati and Fort Bonifacio, but there are plenty of lower-priced developments in areas like Quezon City and even further outlying areas like Cavite.

. . .

/ 2 /

> http://www.nuwireinvestor.com/articles/philippines-property-prices-up-61116.aspx

Philippines Property Prices Up / Sept. 2013

OFWs buy affordable properties, BPOs expand local demand

Overseas Filipinos’ remittances are powering the low-end to mid-range residential property market. They are snapping up housing projects and mid-scale subdivisions in regions near Metro Manila such as Cavite, Batangas and Laguna Provinces, while the expansion of the upper residential market, including the luxury market, is due to increased housing demand from BPO employees and expatriates, according to the World Bank.

Overseas Filipino Workers (OFW).account for around 17% to 18% of residential sales of Ayala Land, one of the country’s major developers. In the next five years Ayala Land President Antonio Aquino expects to double this, by branching out to the affordable and low-end market segment.

Ayala Land is a late entrant to this market, previously dominated by companies such as Vista Land and Lifescapes Inc. Around 55% of Vista Land’s reservation sales currently go to OFWs in Asia, Europe and Middle East, while US-based OFWs account for another 5% to 10% of sales.

There are approximately 9 million Overseas Filipinos (OF) worldwide, or around 10% of the Philippine population. Of all OFs, 46.8% are permanent.

Among the permanent OFs, 65.2% reside in the US, followed by Canada (13.1%), Europe (7.1%), Australia (6.8%), and Japan (3.4%), according to the Commission on Filipinos Overseas (CFO).

Employment in the Philippine Information Technology and Business Process Outsourcing (IT-BPO) industry grew by 22% to 638,000 people in 2011, according to the Business Processing Association of the Philippines (BPAP) President and Chief Executive Benedict Hernandez.

. . .

It’s happening despite a problematic mortgage market

Most houses in the Philippines are sold for cash or pre-sold, due to an underdeveloped mortgage market. Property buyers also face high transaction costs, corruption and red tape, fake land titles and substandard building practices.

These are real problems. Few major banks offer housing loans. Different banks’ loans have strangely similar terms and conditions, and approval of loan applications takes a long time. Land titling and registration problems are prevalent, as are delays in the foreclosure process. Because of these factors, the ratio of housing loans to GDP remains small, at around 2.3% in 2011.

. . .

No housing glut

The accumulated supply of high-end and mid-end residential condominiums from 1999 to 2011 was 118,230 units, according to Jones Lang LaSalle (JLL) research.

• 97% of these are mid-end range (priced PHP 1.5 million to PHP 10 million with an average unit size of 150 sq. m., or PHP 50,000 to PHP 110,000 per sq. m.),
• 3% (around 3,690) are high-end units (priced PHP 10 million above with an average size of 160 sq. m. up, or PHP 120,000 above per sq. m.).

A sharp increase in new supply began in 2005. Since then, supply growth has averaged more than 30% annually.

[drbubb]

Avida San Lorenzo / "San Lo"

 

Latest SSC news : http://www.skyscrapercity.com/showthread.php?t=702832&page=39

 

I have been looking closely at a Buying opportunity ("below market") at Avida San Lorenzo

 

:

 

It seems attractive, because it is walking distance from Greenbelt ("just 500m") - see map below

 

 

PNR / LRT / MRT : map

 

 

:

Studio Rental Ads, as listed on Rentpad
22.5 SM
12,000 : bb : 20th
16,000 : ff-: 19th*
17,000 : ff-: 17th
18,000 : ff-: 28th**
24.0 SM
15,000 : bb : 2nd
=======
*photos: http://rentpad.com.ph/long-term-rentals/makati/studio-condo-at-avida-towers-san-lorenzo-makati/77b17d1329
** http://rentpad.com.ph/long-term-rentals/makati/studio-condo-at-avida-towers-san-lorenzo-fully-furnished/1d0934e74

Old dated info on Tower 1 / Price list (dated 2012-13?)

Location Chino Roces Avenue, Makati City

Available for Sale Tower 1 (total of 2 towers)

Unit Sizes 22 – 66.3sqm Price Range Php 1.75 – 5.1M / that's :

Turn Over 1st Quarter 2013 : Studios in both towers were stated to be sold out back in 2012-13

 

+++ There also seem to be some others for sale +++

Avida Towers San Lorenzo Tower 1 - 9th Floor Corner Unit With Balcony
39 sqm : Asking PHP 3.7 million, that's PHP 94.8k per SM

(this looks cheap, even for the 9th fl. Is it an "old" ad?)

 

(From 2008): source

Avida Towers San Lorenzo along Pasong Tamo extension, the condominium boasts of 1,132 units in two towers.
Units cost anywhere from P1.8 million to P4.5 million, the company said.

 

(another price source):

 

UNIT PRICES

Tower 2
Size of units/Price range:
Studio: 22.08 – 28.48 sqm (1.8-1.9M)
1-BR : 33.81 – 47.64 sqm (3.0-3.8M)
2-BR : 52.50 – 66.30 sqm (4.7-5.4M)

Tower 1
Size of units/Price range:
Studio: 22.08 -- 24.98 sqm (1.8-1.9M)
1-BR : 34.44 -- 47.86 sqm (3.1-3.8M)
2-BR : 52.50 -- 58.66 sqm (4.9-5.3M)

===== > source

approximate pricelist: (2008 prices)

(8 units/flr) Studio (~22.5 sq m) - around Php1.8M : starts at Php 80k psm
(12 units/flr) 1 BR (~35.17 - 36.63 sq m) - Php2.81 - 2.93M

(2 units/flr) 2 BR (~52 sq m) - Php4.16mMThe first tower’s construction, which has 30 floors, will begin in the third quarter of this year. It will be turned over to its owners starting 2013. The project is a joint venture with Makati Greenbelt Palms Land Inc., owned by Chinese nationals.
The 8,070 square meter property, where the project is situated, was contributed by MGPLI.
Avida Land officials refused to divulge details about the partnership but said MGPLI will get the “equivalent units" for their property.

 

According to Dez Cruz, head of residential buildings of Avida, Avida Towers San Lorenzo is a haven for Gen Y-ers or young executives and professionals in their 20s and 30s who want to live in the most vibrant and dynamic community in the country. For these confident and tech-savvy individuals, purchasing a unit in this project along Pasong Tamo Extension will mean being just “a dash away from the corporate headquarters of most of the Philippines’ top corporations, major business establishments and support services.”

After hours, Avida Towers San Lorenzo’s superior location will allow these individuals who work hard and play hard to freely enjoy the leisure options available at the Greenbelt and Glorietta malls without the hassle of a long commute home.

[drbubb]

Hanging out in Makati, this dishy creature sat next to me at a coffee shop.

She is known as "the blonde Filipina", since she speaks tagalog.

But she is actually from Australia

She was discussing a future film project with a documentary filmmaker.

 

All true - I found these videos on Youtube afterwards

 

 

+ AGT audition (the TV version was deleted)

[drbubb]

Is oversupply developing? (Condo rentals)

There were 57,710 condominium units in Metro Manila in 2013. Colliers anticipates 8,180 new units will come onto the market each year over the next four years. Newbuilds will push the stock of condominiums in Makati CBD, Rockwell, Fort Bonifacio, Ortigas, and Eastwood up to 90,436 condominium units by 2017.

.

Will demand be able to keep up?

The condominium vacancy rate in Makati CBD was 10.9% in Q1 2014, up from 9.8% in Q3 2013.

Arguably however this vacancy rate increase is artificial. Colliers attributes the increase to turnover of new units. Premium three-bedroom units, it says, are still experiencing virtually full occupancy, with only a 4.6% vacancy rate.

JLL (formerly Jones Lang Salle), sees a small oversupply in the short term. This “little oversupply” of homes involves property projects launched six years ago and now coming online, pulling rental rates temporarily downwards. JLL sees 2014 as the year when supply will peak; however, they see no signs of a property bubble brewing.

Manila’s segmented market

.

Lower down the income scale there is cause to worry.

There are three identifiable segments in Manila’s housing market:

1. The high end. This is the segment discussed by JLL. Local high-earners and expatriates occupy this segment.
2. The middle tier. The mid-end condominium sector, with monthly amortization of around PHP 10,500 (US$ 235), presently requiring a dispensable income greater than PHP 34,962 (US$ 783), to obtain a housing loan of PHP 2 million (US$ 44,801). This segment has been targeted by many developers, and is attractive to overseas foreign workers (OFWs).
3. The low end. This is where the mass of the population live.

We believe that the middle tier is over-supplied. Many of these lower middle-class condominium developments are ghost cities.

(by email):

That 10.9% vacancy rate (from Q1-2014) came down:

Concerns of a possible oversupply in the condominium market led developers to delay completions of their projects. Still, a total of 30,935 residential units are to be delivered in the next three years with nearly 40% of the figure expected by 2016. The majority of these units are studio and
.
Residential vacancy for Makati CBD slightly declined in the first quarter 2015 amidst continued strong take up for condominium units. Likewise, the limited number of new completions for the period helped pull down vacancy figures; the business district’s vacancy lowered by 16 basis points to 7.9% largely from the take up of Grade A buildings, still the preferred property by unit buyers. However, the delivery of new units in the coming 12 months is expected to push overall vacancy to 11%.
.
Meanwhile, the larger units, from 3 to 5 bedroom units, account for 7.0% of the new supply with unit cuts of between 100 and 500 square meters. As such, the influx of these smaller sized units is expected to create pressure on rental rates and prices

> The Knowledge, Q1-2015

[drbubb]

Today's article in WSJ - best place to retire in world is in Philippines.

Guy retired in Philippines and bought condo in Manila.

http://www.wsj.com/articles/best-places-to-retire-abroad-the-philippines-1432827258

If you are considering retiring in another country, I am no doubt biased, but I believe it’s hard to beat the Philippines.

I first visited this island nation (about 7,000 islands in all) 24 years ago when I was 52 years old. At that time I was a college professor doing research, and friends introduced me to a lovely young lady who over time became my wife. I am now 76 and retired, and my wife and I plan on spending much of the rest of our lives in the Philippines.

The benefits are numerous: a warm climate year round (average low temperatures are in the mid-70s); endless beaches and water activities; easy access to destinations across Asia; excellent medical care; a relatively low cost of living; and abundant opportunities to help those less fortunate.

. . .

Let me repeat: The Philippines isn’t paradise. (The rainy season starts in June and lasts for about six months.) But then…paradise, I believe, is primarily a state of mind. If you are adaptive, if you have a positive attitude toward change and challenges, then you should do well as an expat. On the other hand, if you are irritated by things not being like they are in the “good ol’ U.S. of A,” you shouldn’t bother packing your bags.

 

For me, the Philippines has proved to be a destination filled with natural wonders, a vibrant culture and ample opportunities to enjoy later life. It has been a very interesting 24 years, to say the least, and I look forward to the next 24. The age 100 has a nice ring to it.

[drbubb]

(I posted this on AX - Let's see if there is any response .. here or there):

 

A Buying Trip to the Philippines
Four of us from HK have just returned from a trip to Manila. The intention was to look at some targetted properties, consider some new opportunities, and to buy, if we liked what we saw. The result is: we will likely be purchasing 4-5 properties between us. Several are still under construction, and 1-2 are "RFO" (ready for occupancy) or will be soon after purchase.

Compared with HK, we are seeing:
+ Much lower prices, with some of the properties purchased near PHP 100,000 per Sq M (= about HKD 1,700 psf),

and one was even a bit below that level

+ Much higher yields than HK, like 8-10% gross

I am hoping that we will see more people, with real experience of the Philippines market posting here in the future

[drbubb]

2-year closure of Buendia Ave. to spark condo rental market in Makati

 

MANILA – Here’s a happy problem for property developers, particularly those with condominium projects in Makati and nearby areas.

Gil Puyat Avenue, one of the major roads that cuts across the Makati central business district (CBD) will be closed for two years to give way for the construction of an underpass.

According to Jones Lang LaSalle country head David Leechiu, this seeming disruption to the wheels of commerce at the country’s main financial district presents an opportunity for property companies.

During a forum organized by the Financial Executives Institute of the Philippines, Leechiu said rentals in the middle market would soften in the short-term, owing to the small glut in the condominium market.

But this would be good for Metro Manila workers who would drive demand for half-way houses to save them travel time going to and from their workplaces.

"People coming from Ortigas to Makati will see longer travel time. Many people may take an apartment in Makati instead of spending four hours inside a car," Leechiu said.

Ranging from executives to call center agents, the apartment rental market could help stabilize prices, he said.

 

> more: http://www.interaksyon.com/business/105355/2-year-closure-of-buendia-ave--to-spark-condo-rental-market-in-makati

[drbubb]

BGC is better... Really? Perhaps not.

Though some think so:

 

‘BGC safest place to invest,’ say experts

 

Leechiu quipped: “Will Makati be emptied out? I don’t think so. Because even if you add all the office space under construction in the next five years, the total office space in Bonifacio will only amount to about 1.1 million square meters. Makati is 3 million sq m, so even if everybody wanted to leave Makati, there won’t be any space (anywhere else).”

Lylah Fronda, JLL associate director for markets, said that “companies that have been to Ortigas and would want to upgrade in better CBDs would probably go to Makati, while companies in Makati will aspire for Bonifacio.”

. . .

Guevara added, “It will actually be interesting to see these different hotel brands compete head to head in BGC in the next few years. At the end of the day, hotel guests and luxury condo investors will benefit from the presence of these hotel giants as they get a taste of world-class hospitality in a bustling, dynamic new city center.”

Soriano said that aside from The Ascott Group of Singapore (the hotel group behind the former Oakwood Premier Hotel located at the Ayala Center, Makati), the Shimao Group, a developer owned by China’s fifth-richest man, Xu Rongmao, will put up a hotel at BGC.

Read more: http://business.inquirer.net/111407/bgc-safest-place-to-invest-say-experts#ixzz3eVXmP82I

Those who promote buying flats in BGC may not have considered that Makati is still bigger and better (ie has more high-paying jobs),

and BGC has a huge amount of incoming supply of condos.

Developers have diverse strategies

ALI is building Alviera, in Porac, Pampanga, which is envisioned to be another premier township. Alviera is a 1,100-hectare large-scale master- planned development that is being positioned as the premier business and leisure hub in Central Luzon.

The group is likewise increasing its residential developments catering to all segments of the market, including socialized housing; and boosting its office, shopping center and hotel portfolio.

The SM Group will build “micro cities” around its shopping malls by developing apartments, offices and hotels. Fifteen of the over 50 shopping malls are on land large enough for high-density and mixed-used developments. The biggest bet is on the planned Manila Bay reclamation of 600 hectares. The group is pouring Php 100 billion into the master-planned, integrated and mixed-use project

Megaworld will launch five new townships: two in Luzon, two in the Visayas and one in Mindanao, with a total land area of around 400 hectares. This will bring Megaworld Groups’s total township land area to 3,100 hectares by year-end.

Building mixed use developments and townships has proven to be profitable for developers. Based on the April release of the Bloomberg Asia Pacific Real Estate Index, SM Prime gained 37% over the last year, Megaworld grew by 30%, and Ayala Land increased by 29 percent.

The other top developers have been busy as well. Robinsons Land Group acquired the 18.5- hectare property along Ortigas Avenue extension, where it would build a major township. In addition, it is expanding its residential, office, hotel and mall portfolios nationwide.

The Greenfield/Unilab Group announced that it will develop the 12.8 hectare EDSA Central complex into a mixed use community as well. Vista Land and Puregold have been expanding their commercial retail investments. Some major players have expanded into other sectors such as transportation and toll ways. DMCI, Filinvest, Metrobank/Federal Land Groups have been investing in the power sector.

 

> more: http://manilastandardtoday.com/mobile/2015/06/19/ph-property-players-stay-ahead-of-curve

[drbubb]

People wanting to reside in the Philippines, should look into applying for a SIRV: Special Investors Resident Visa

http://www.philembassy.no/consular-services/visa/special-investors-resident-visa-sirv

Minimum investment : US$75,000

http://philippinevisalawyer.com/?q=special-investor-resident-visa-sirv

Allowable investments:

For purposes of securing an SIRV, only investments or shares of stocks in existing, new or proposed corporations shall be allowed

as eligible forms of investment:

1. Publicly- listed companies
2. Companies engaged in areas listed in the Investment Priorities Plan (IPP) of the Board of Investments.
3. Companies engaged in the manufacturing and services sectors
It bears emphasis that ownership of shares of stock in corporations engaged in wholesale trading shall not be allowed.

[drbubb]

Will excessive Density (and a poor location) burst the Trump- Century City Bubble?

 

 

There's already Forum talk about it:

 

YEARS AGO: the marketing story for Trump Tower, went like this:

"it is actually an official collaboration with Donald Trump. It will be an ultra-high end property. It is on the front page of the Philippine Star."

1/

...back in 'those days' when it was just a rendering and many read the blurb one could, i suppose, have been taken in by such hyperbole.
Today, some years later, having witnessed the construction for the past 2 years I am yet to see anything that points to high end let alone that other word 'ultra'. Time will tell of course but if Gramercy is anything to go on, albeit perhaps without the word 'ultra', then I doubt it.

The other fascinating thing about sky rises in Manila and particularly about this 'Century' project is how ridiculously close they are to each other; talk about ignoring the 'right to light' but how about the 'right to air' ? Totally insane. The bubble will burst if not already... buyer beware.

- E. F.

2/

Totally agree ... The selling price in century city is not commensurate with the insane high density in it...

- P.S.I.

3/

CPI’s marketing campaign has been a resounding success; thanks to all the investors who have bought into the hype and contributed to CPI’s bottom line. However, rest assured that few years from now when the dust has settled, there will be lots of empty units looking for tenants or available for sale at possibly below pre-selling price in this congested and polluted part of Makati with poor infrastructure.

==

> http://www.skyscrapercity.com/showthread.php?t=1440276&page=106

[drbubb]

Ayala seems to have broken is record of ON_TIME completions at Lerato:

 

 

Originally Posted by hognek

I just got a call from Alveo that there is a delay of turnover for my unit in tower 1. I will be getting the keys in December 2015 instead of October. Strange I thought Ayala land usually don't delay on their turnover.

yes, i have a lower unit facing the pool. My wife and son flew there from usa. We can have a viewing of the unit (with a scheduled time), but at least for us, we cant take posession until sept. What they are telling my wife is that the unit is done persay, but there are safety concerns with workmen, crane picks, etc. that could potentially hurt a resident. No one wants to have someone hurt, hence the delay. Since we will fly back to us in august, we will postpone outfitting the unit until next year. A disappointment, for sure, but at least we get to "enjoy" our outfitting savings for another year.

> http://www.skyscrapercity.com/showthread.php?t=1002701&page=27

+ next page:

As i said before, ayala and alveo land brands are becoming tainted by their project delivery delays. I have anticipated this. So prospective investors beware!!! Alveo and ayala land are joining the band wagon of other developers in not meeting the committed delivery date of their project turnovers. *sighs*

 

Is there too much construction going on, raising costs, and causing delays?

[drbubb]

Alternatives to HOTELS, when staying in Makati... / New thread on RENTING in Makati /

 

 

Traveling to the Philippines? Maybe you would like to try renting directly from a landlord.
I have done so, using AirBNB, and other referral services, allowing me to find a room at a
price significantly below the cost of a Hotel room.

Example: Hotel Room : in HKD : in Ph. Peso / estimates, July 2015
Best Western : US$ 72 : HKD 560 = PHP 3,170 per night
City Garden - : US$ 93 : HKD 720 = PHP 4,100
Peninsula --- : US$200 : HKD1550 = PHP 8,800

Example: AirBNB

Avida West Makati, Belton, Oriental Place, etc.: SIZE: 20 - 24 Sq, M (see locations, below)
PHP 1,500 - 2,000 per night, Estimated for a minimum of 2 days, when available,

discounts may be available for stays of 7 days and longer.

 

If you have done the same and wish to offer and comment or recommendation,
please feel free to post them on this thread.

A person whose rooms I have used is XXX
And some friends have also rented from him, based on my suggestion.
We found his rooms to be comfortable and clean, exactly as in the Photos.
And he was very responsive to client requests, and answered many questions cheerfully.

 

Maybe you should try this mode of accommodation on a future visit to Makati and Manila.

=== ===

 

NEW thread on Renting :: http://www.greenenergyinvestors.com/index.php?showtopic=20162