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RENTING in Makati and BGC : Short Term and Longer

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FLATS available FOR RENT at Trevi, on Chino Roces Avenue

 

Condominium-Studio-Units-for-Sale-Laurea

Laureano di Trevi Towers

 

Location

vicinity-map-venti.jpg

 

we have a number of units in Laureano di Trevi Towers located along Chino Roces Avenue (formerly Pasong Tamo) between Wilcon and Mitsubishi in front of Don Bosco near Waltermart Makati.

It is also near Magallanes MRT/EDSA, near Skyway/SLEX exit and PNR. The Makati CBD is also a short distance away. Our units are brand new (never been used), with new appliances and furnishings as well.

The expected monthly rent is 19K per month* (negotiable) inclusive of association dues. Minimum stay is 3 months.

I'd be glad to show you around the area, and we can even have coffee at Starbucks at the ground level of Laureano di Trevi Towers so we can talk more about these.

Thank you,

John Prado

contact@pradojohn.com
+63 917 566 8332 (Globe/Viber/WhatsApp)
+63 998 5544 718 (SMART)
+63 2 504 5008 (Landline)

=====

* Subject to change

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Big Jump in Supply and Vacancies is undermining Residential Rents - 2017 is a crunch year!

===
(As per the Q4-2016 Collier's report, "the Knowledge")

===
Overall vacancy continues to rise - see the table below
As of the end of 2016, overall vacancy in Metro Manila stood at 10%. This shows a 2.2 percentage point
increase from the vacancy recorded in the first half of 2016. (But it is even higher in key CBD areas.)
Colliers sees overall vacancy hovering between 12% and 16% in the next twelve months with the delivery of
an additional 22,800 units this year.

:
Makati CBD Comparative Residential Vacancy Rates
GRADE / Q3-16 : Q4-2016 : Q4-17F :
Luxury - : 12.96% : 13.98% : 16.04% :

Others --: 11.25% : 13.23% : 16.66% :
AllGrades 11.48% : 13.33% : 16.59% :
FtBonifacio : 14% in 12 mos. (7,500 units)
Ortigas Ctr : 7-9% in 12 mos
==
Comparative Luxury 3BR Rental Rates (PHP / sq m / month)
AREA--- : Q3- 2016 /mid : Q4- 2016 /mid : Q4- 2017 /mid : Est.Chg / Report
Ft. Bonif. : 650-1040/ 845 : 640-1026/ 833 : 600-0960/ 780 : - 6.37% / - 6.37%
Makata -- : 570-1120/ 845 : 560-1100/ 830 : 530-1040/ 785 : - 5.42% / - 5.67%
Rockwell : 790-1080/ 935 : 780-1070/ 925 : 740- 1010/ 875 : - 5.41% / - 5.19%
=======

Rental rates for premium three-bedroom units in Makati CBD declined by 1.4% to PHP837 (USD17.1) per sq m a month from PHP847 (USD17.3) per sq m in the previous quarter. The rental rate drop was faster than the 1.3% decline recorded in Q3 2016. With the completion of new units, we expect rental rates in the Makati CBD to drop by around 5% to 7% over the next 12 months.

... Colliers sees rents in the (BGC) business district declining by 5% to 7% over the next twelve months. Rockwell rents declined by 1.3% to PHP930 (USD19) per sq m a month. We project that rental rates will slide by 3% to 5% over the next twelve months.

 

Renters are drawn to developments in the fringe areas

...As these offer a 10% to 15% discount. The units in the fringes serve as halfway houses for millennials and other professionals who opt to live near their place of work during weekdays but go home to their families during weekends. These weekday halfway houses are also more practical for employees working in CBDs as the worsening traffic in Metro Manila only makes their commute to and from work more unbearable.

 

Examples of alternative condominiums in the fringes include Cityland Makati Executive Towers, Jazz Residences, The Beacon Makati, and The Linear Makati in Makati Fringe; Acacia Estates in Taguig City; and Flair Towers and Gateway Regency in Ortigas Fringe.

> http://www.colliers.com/-/media/files/marketing%20reports/4q2016_colliers_quarterly_residential.pdf

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Some interesting data from Lamudi - seems to be in line with my expectations

 

Rental price data based on Lamudi ads

 

http://www.lamudi.com.ph/journal/price-guide-condos-rent-metro-manila-2017/

 

(following image added in edit, by DrB.):

16.jpg

 

Higher end, and smaller properties may be above these figures, and some other below.

But I reckon these are based on ASKING prices in ads, and final agreed rents may be below asking prices,

assuming some negotiation by the tenants

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The Power of Affordable pricing?

The market has absorbed close to 1,000 units at Trevi & AT-SanLo more easily than I had expected

Next up in the area for turnover is Beacon Tower 3 (1,000 units) very soon - maybe this month.

After that, there may be nothing new completed in the area for several years

 

STRONG Rental demand reported .. for affordable units - like $12-20,000 monthly for studios.

 

A "Landlord's Market" on Chino Roces/ Pasong Tamo?

ZCmpxlQ.jpg

Trevi Towers, viewed from Pasay Station, on PNR rail (Cityland's building is on the left of the photo)

 

I posted this yesterday on our Viber chat: "Whatta a surprise - just met with a guy managing dozens of rental units at Trevi Towers on Chino Roces. He gave me a very bullish report on Rental demand.

 

"A Landlord's Market": that's what he called it. He could see I was surprised, so he showed me a spreadsheet with his units on it. I think he had a few dozen units ... all are the small 1br - I think they are 22 sqm + 2 sqm balcony. Near turnover available from him would be about June 7th, Most are rented out as furnished at P18k - 19k. Some were rented bare at P13k-14k, with the LL paying the association fees. With no current availability, he has a waiting list. Some people have been waiting for weeks.

 

featured-image47.png

 

More good news on Rental demand in Makati's CBD-Fringe area. The leasing manager at Avida Towers San Lo has confirmed to me that she is also seeing strong demand, just as I have heard reported at the nearby Trevi Towers. AT-SanLo is next to Waltermart on Chino Roces, and Tower 2 with 575 units was turned over last year. Avida Leasing manages over 250 units in the two towers. At the moment they have Leased out 250 units under their management, and only 10 units (under 4%) are vacant right now. Demand is healthy and rents are stable.

 

Renting AT-SanLo through Avida: (+632 988-2711 / M: +63917-867-2817, ask for "Jastine")

> see : Avida Leasing : location: AvidaTower-San Lorenzo ("AT-SanLo")

> Rentpad- AT SanLo : https://rentpad.com.ph/places/avida-towers-san-lorenzo/c3eb0d8b10

 

I asked her if she was concerned about people switching over to Beacon, when Tower 3 with about 1,000 units was turned over in the very near future. She said that she expected to lose a few tenants from the (more expensive) 2BR units, but generally she was not too concerned, because asking rents at Beacon were expected to be higher, and most tenants were happy with the (lower) rents they were paying now at AT-SanLo. The Avida Leasing website shows: 0x bare studios (22-24sqm) offered at P12,000-13,000 monthly (in the past, but not available right now), 3x semi-furnished or furnished studios at P16-19,000; 4x furnished 1BR units (about 33-38sqm) offered at P22,000-30,000, and 0x furnished 2BR units (52 sqm) offered P35,000-40,000.

 

This is very encouraging, since both Trevi and AT-SanLo completed new towers in 2016, and both of these have already been absorbed by the market without any significant drop in Rents. Beacon's release may keep rents from climbing. But once the new Beacon units have been absorbed over the next 6-12 months, there could be some upwards pressure on rents in the Waltermart/ Chino Roces area because it is walking distance from Greenbelt and near a convenient hub of jeepney and bus traffic. After Beacon, there are no new towers being completed in the immediate area. San Lorenzo Place is a jeepney ride away, but not an easy walk, and it is less convenient for those who want to walk to the Greenbelt malls

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How High is the Demand for a Condo for Rent in the Philippines?

  • June 30th, 2017

The Philippines is fast becoming one of Asia’s favorite real estate investment hotspots. With the number of condominium developments being planned and built in the country, the average gross rental yield of Philippine real estate is among the highest in the Asian region. This may be attributed to a couple of factors – the BPO industry, which is steadily attracting expatriates and top Philippine talent alike, and to some extent, the influx of retirees, both local and foreign. With this new breed of tenants, it’s quite tempting to take advantage of the investment opportunity being presented by the market. But before you take the plunge in Philippine real estate, let’s look at the numbers. Exactly how high is the demand for a condo for rent in the Philippines?

ZipMatch’s Data Science Team has run the numbers on the trend of condominiums listed in its database over the past year, and has identified five key cities in Metro Manila: Makati, Taguig, Quezon City, Pasig, and Mandaluyong. While all five have some similarities, the average demand for a condo for rent in each city differs significantly.

 

 

How Much are Metro Manila Tenants Willing to Pay for Rent?

Makati-Rental-Stats-Php.png Taguig-Rental-Stats-Php.png

A large portion of rental demand in Makati (69%) and Taguig (72%) have budgets from Php 10,000 – Php 47,000. Both cities have their own business and financial districts that serve as the headquarters of both multinationals and top local companies. The demand for rentals includes expats working or living in these cities. To cater to the needs of this mostly high-end market, malls and entertainment options have been built in the townships of Ayala Center, Bonifacio High Street, Serendra, and Uptown.

==

> http://www.zipmatch.com/blog/demand-condo-for-rent-philippines/?utm_source=facebook&utm_medium=social&utm_campaign=photoalbum&utm_content=demandcondoforrent

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RENTAL UPDATE

Avida Towers San Lorenzo, on the fringe of Makati, below Arnaiz Avenue

3moRNG0.jpg

(per Avida Leasing - some estimates):

Avida SanLo Flats / same estimates as Dec. 2015 : (per handout)

Type/ Size : Unfurn - /SM : Semi-F : Fully Furn. / FF/unf. / FF.perSM
Stu- 23 SM : 14,000*/ p608 : 16,000*: 18-20: 19,000/ 136 % / php 0,826
1BR 41 SM : 21,000*/ p512 : 24,000*: 27-30: 28,500/ 136 % / php 0,695
2BR 59 SM : 31,000*/ p525 : 35,000*: 40-45: 42,500/ 133 % / php 0,720
=========
*12.0K + 2.0k.est assoc.fees = 14.0k; 1br: 17.0 +4.0= 21.0; 2br: 25.0 +6.0= 31.0

==

> http://leasing.avidaland.com.ph/avida_towers/avida-towers-san-larenzo/

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Two AVIDA Properties show big contrast (in Vacancy rates)

 

Could this be because nearby properties are now available for Rent,

and Avida Mak-W tenants are moving out, and into their own flats elsewhere:

 

-> such as Alveo's Lerato

 

(example: I'm not yet sure the move-in date of Avida Asten, Tower 1)

 

# UNITS Available through Avida Leasing

 

Property------------- : Avail. : Total : Avida* Vacancy Rate

Avida San Lorenzo : 00 7 : 1300 : 260 : 07/260= 2.7 %

Avida Makati West : 0 20 : 1150 : 230 : 20/230= 8.7 %

 

compare Alveo bldgs:

Columns Legaspi : 00 6 : 1150 : 230 : 06/230= 2.6 %

Columns Ayala -- : 0 ?? : 1302 : 260 : ??/260= ???%

====

 

* I assume that Avida Leasing manages about 20% of the units in each project,

This is based on my own direct knowledge of the number they manage at Avida SanLo

 

tIMG_0106.jpg

This 22.5 sqm studio unit on the 21st floor of Tower-1 AtSanLo is asking P19.000 monthly.

There are two other studios, semi-Furnished at 16K and 18K. The other available units are larger

 

At.Mak-W has three bare studios at 13,000, and one at 14,000 - versus Zero bare units (right now) at At.SanLo

 

Estimated number of Units

At San Lorenzo

Twr.1 - : 114m. 28 st. : x 24 = 700 : 2ndQ.2013 :
Twr.2 - : 107m. 25 st. : x 24 = 600 : 4thQ.2015 :
> 1300 units. estimated

avida_tower_mkt_west.jpg

At.Makati West

Twr.1 - : 99.2m. 26 st. : x 21 = 546 : 1stQ. 2011 : 08-st., 08-1br, 05-2br x XXfl =
Twr.2 - : 91.6m. 24 st. : x 25 = 600 : 3rdQ. 2011 :

> 1146 units. est. x20%= 230


Av.Columns. Legaspi
Twr.1 - : 150.m. 41 st. : x 14 = 574 : ???Q. 201? : 08-st., 04-1br, 02-2br x 41fl =
Twr.2 - : 150.m. 41 st. : x 14 = 574 : ???Q. 201? : 08-st., 04-1br, 02-2br x 41fl =
> 1148 units. est. x20%= 230 / 6 @ 30k - 85k / mo. (about 1000 psm?)

Av.Columns. Ayala
Twr.1 - : 114.m. 31 st. : x 14 = 434 : ???Q. 2006 : 06-st., 05-1br, 03-2br x 31fl =
Twr.2 - : 114.m. 31 st. : x 14 = 434 : ???Q. 2007 : 06-st., 05-1br, 03-2br x 31fl =
Twr.3 - : 114.m. 31 st. : x 14 = 434 : ???Q. 2008 : 06-st., 05-1br, 03-2br x 31fl =
> 1302 units. est. x20%= 260

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WHY the rising Vacancies? Is it due to New competition?

Avida Makati West : 0 20 : 1150 : 230 : 20/230= 8.7% estimated vacancy rate

Why are the Vacancies so much higher at Avida Makati West, than Avida SanLo (2.6%)?

I reckon it is because a new building was completed not many months ago, and it is sucking tenants out of other buildings, especially in its area, near Tech Zone

The main new one seems to be

Victoria De Makati - with about 950 units, which was turned over earlier this year. : zipmatch :

The units there are VERY bare, mere shells which need proper ceilings, kitchens, and everything to be installed.

And this takes time - several weeks and even months for many flats

_4_.jpg : more layouts :

2BR / 3BR flats are on two levels, with small windows and small rooms

This was one of the cheapest new condos in Makati. 5 years ago, people were buying at between P50-60k per sqm.

This means that some owners may have rented in Avida MW while they waited for their units to be turned over, and others may have moved out, to get larger flats at lower rents

_2_.jpg

Example : RENT 2BR at Victoria de Makati :

₱ 25,000 Per Month (Note: part of a "payment scheme" so may be misleading.)
Floor Area : 42 SQM (P 595 perr sqm)
List Date : 22 August 2017

Makati City, Makati Aven...

Victoria de Makati rises on the urbane Washington dela Rosa for young professionals and t...
 
_4_.jpg
Example : BUY 2 - 3BR at Victoria de Makati
₱ 3 Million / 42 = P 71.4k psm (still available? not sure)
Description

*Unfurnished (needs finishing, can commission outsider subject to terms and conditions but if internal 250k-400k)
*42sqm / 18th floor tower B

> https://www.olx.ph/item/3br-bi-level-condominium-unit-at-victoria-de-makati-ID85JvW.html?h=a5a55a4c23

 

Agents told me that most of the new tenants in Victoria de Makati are shifting over from nearby Cityland buildings

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RENTS at Alveo's Lerato

I dropped by on Saturday, and was given these indications

Studio - Bare: 20 - 25,000 : 22,500 / (30-31:30.5) = 738 per sqm
---------SemiF : 30 - 35,000 : 32,500 / (30-31:30.5) = 1066 per sqm

1 B.R. - Bare : 40 - 45,000 : 42,500 / (48-54:51.0) = 833 per sqm
---------SemiF : 45 - 50,000 : 47,500 / (48-54:51.0) = 931 per sqm

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On Renting - it was interesting to see this...
I picked up a copy of an AVIDA LIVING magazine,
and found article on "How to Maximize you Rental Income".
Right at the end of the article was this comment:
"Most Avida renters are looking for unfurnished units
rather than semi/Fully-furnished. This is probably because
of its lower monthly rental... Given this market preference,
we highly recommend our unit owners to keep the units unfurnished."
In this scenario, the speed of having the unit rented out
outweighs the higher rent.

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Minute 4.55

Excerpt: - As far as appreciation, don't expect it to appreciate.

Do not do it as an investment thinking, thinking... this is not California.

If you're lucky, if you're extremely lucky, and you decide to sell it within 5 years, you'll either break even OR only lose maybe 20pct of what you bought it for. So that's if you are lucky. And what I see, and I was a licensed realtor and real estate agent in California, ... it is still a renters market. THERE ARE MORE UNITS AVAILABLE THAN THERE ARE RENTERS. ... i see rents getting cheaper in the metropolian areas.

End of Excerpt.

He was based in Cebu, -- Cebu has always been weaker because there is less inflow of foreign investment IMO. Manila is the gorilla.

Because what I see and have seen in the Bay Area is the exact opposite of late. Rents have been getting very expensive in that area, despite the supply. (ECB's comment) Rents in Monarch Parksuites, a condo with marble flooring are fetching PHP1400 per square meter. That's what I see on rentpad. Not a guarantee that it will go on but the last years rents have increased significantly over there.

There were numerous comments on this video. Many people have seen this video and this is a very popular vlogger. Most people who commented - at least 90pct - agreed with the author, even though there are some who have made significant investments in PH real estate.

So most ordinary people prefer to rent. But I agree with him that if you buy from developers today, you're going to lose big time, because secondary market prices is way cheaper now.

 

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