By Mary Ann LL. Reyes (The Philippine Star) Updated July 01, 2011 12:00 AM
MANILA, Philippines - The world’s largest commercial real estate services firm expects the Philippine property market to remain upbeat, largely due to good fundamentals both as far as the local economy and the real estate sector are concerned, as well as poor conditions in many neighboring countries.
CBRE Philippines chairman and CEO Rick Santos said in a briefing that the Philippines remains an attractive place for locators, with the country having some of the lowest lease rates in the region. “The Philippines has some of the highest yields and demand for office space in Asia. The local office sector also has one of the best fundamentals in the region. We are seeing the start of a projected upscale in the Philippines,” he emphasized.
Aside from good fundamentals in the economy and in the real estate sector, Santos noted that the cost of office space in Manila is around 12 to 14 times less than that of Hong Kong. “It is very cost effective here,” he said.
The average lease rate for office space in the Philippines is around $20.2 per square meter per year compared to Hong Kong’s $89.92 and Kuala Lumpur’s $28.32.
The downcycle in the United States that has resulted in more businesses looking to outsource their business processes to countries like the Philippines will also augur well for the latter in the coming years, Santos added.
He said he expects office take-up in the Philippines to exceed 300,000 square meters this year compared to Singapore’s 150,000 square meters.
“We have not seen this much interest in Asia, and more particularly the Philippines, in recent years,” Santos stressed.
He noted that the Philippine real estate sector remained as a major contributor of growth, with the domestic economy still performing better than some of its neighboring countries. “Countries like Thailand and Japan are laggards due to its population already being adult, not to mention the calamities in Japan that are causing challenges and negative growth numbers, and the upcoming big election in Thailand,” he said.
Santos likewise noted that tourist arrivals are picking up in the Philippines. “Within the rest of Southeast Asia, the Philippines is back on the map as as investment destination. The key, however, is to keep inflation rates under control. But interest and mortgage rates are coming down, banks are awash with liquidity, and the country has a strong banking sector,” he said.
“We see great metrics in the business process outsourcing (BPO), tourism, remittances, gaming sectors in the Philippines. There is so much good new here,” he added.
For his part, CBRE vice chairman for global corporate services Joey Radovan noted that the Philippine BPO global share has much potential to grow to as much as 15 percent from eight percent as of last year.
The local BPO sector posted revenues of 4.2 percent of gross domestic product (GDP) in 2010. “Revenues reached $8.9 billion and are expected to triple to $25 billion by 2016,” Radovan said.
He also revealed that total number of BPO employees amounted to 525,182 with projections of an additional 500,000 over the next five years, translatingto the need to build close to three million sqm of office space.
Radovan also characterized the Philippine office sector as one with rising lease rates and falling vacancy rates.
He said Manila office rents are the second lowest in the Asia-Pacific region in the first quarter of this year at $20.2 per square foot per year.
“Office lease rates of major business districts continue to improve. Vacancy rates are also falling in all major Metro Manila business districts. There is also sustained office demand for both BPO and traditional offices,” he added.
CBRE Philippines reported that the Metro Manila office market is experiencing a steady rise in lease rates as vacancy rates continue to fall
Thursday, June 30, 2011
Saturday, June 25, 2011
Real estate brokers need to learn effective marketing: consultant
Tuesday, June 21, 2011
LOCAL brokers should be equipped with the right marketing skills to effectively sell condominiums in Cebu, a real estate marketing consultant said.
Salesman’s Centre head Jun Garing said there is a need for Cebu to raise the bar in promoting real estate properties, primarily condominiums, in order to avoid common pitfalls experienced by other areas like Metro Manila.
In a recent press conference, Garing told reporters that effective marketing strategies should be applied by brokers in order for the industry to avoid huge inventories of condominiums.
Forum
“Cebu, which is now one of the hottest destinations for condominium developers in the Philippines, will provide thousands of condominium units in the next couple of years, thus brokers should know the ethical and effective approaches in selling this kind of properties,” Garing said.
Salesman’s Centre-The Institute of Sales Training and Entrepreneurial Development will be holding its first real estate forum in Cebu on June 24 at the Radisson Blu Hotel.
Experts in Philippine real estate marketing will convene to talk about strategies on how to effectively sell properties to both local and foreign clients.
The whole-day event dubbed “Exsell 2011: Best Practices in Condominium Selling” is expected to draw over 300 licensed brokers.
Among the speakers are Enrique Soriano III from the Ateneo Graduate School of Business and a former chairman of the Empire East Suntrust Developers, a subsidiary of Megaworld Corp.; Efren Tan, vice-president for sales of SM Residences; Raymond Domingo, vice-president for sales and marketing of Century Properties; Alejandro Mañalac, vice-president for sales for Eton Properties; and Flor Ofrecio, sales head of DMCI Homes.
“It’s not enough that you know the selling of condominiums. It is important that a
broker should have knowledge about the project, and the culture of the buyers he or she is dealing with,” said Garing, who is also the head of marketing and sales group of Filinvest South Road Properties (SRP) Group.
He said there is a need for Cebu real estate practitioners to continually learn the best and effective practices, otherwise a glut of condo properties will be expected.
Garing said that in the last two to three years, Cebu sold 3,000 condominiums but recorded a condominium inventory valued at P100 billion.
He said it is time to educate brokers “especially that Cebu is now experiencing the lucrative condominium selling that happened in Manila in 1992-1998.”
Among the topics to be discussed in the forum is how to effectively sell condominium properties to foreign clients.
Garing said brokers should be guided properly when transacting business with foreign clients as they might raise offensive questions. “We have to understand that we come from different cultures. We might throw questions offensive to them without our knowledge,” he said.
Second home destination
In terms of training and education, Garing said there is still a need for Cebu real estate practitioners to learn from the experts to maximize the potential of Cebu as an emerging second home destination in the world.
The forum, which is open to the public, is also a venue for career opportunities for college graduates who want to get into the real estate business, Garing said.
He said the forum also hopes to eliminate sales persons who are not licensed brokers and encourage them to be registered and licensed.
He said the attendance of the seminar is equivalent to eight hours of Continuing Professional Education by the Philippine Regulatory Commission, which will be issued by the Real Estate Brokers Association of the Philippines-Cebu.
For FREE Real Estate Consultancy, Call 032.3181589 / 0917.3236123, Samuel Lao of Realty Options.
Published in the Sun.Star Cebu newspaper on June 22, 2011.
Russia to strengthen ties with country
Thursday, June 23, 2011
AMBASSADOR Nikolay Kudashev of the Russian Federation committed to strengthen the trade ties of Russia and the Philippines, saying the country is the ideal destination for Russian investments.
Kudashev said the Philippines has investment potential in technology and business process outsourcing (BPO). He said they are interested in public-private partnership (PPP) in the spheres of energy, transportation, communications, infrastructure development, military exchanges, and military technical cooperation.
As for BPOs, Kudashev praised the country’s growing outsourcing industry. He said BPO skills are one of the treasures of the country, where countries like Russia would be willing to invest.
In a recent report, the Philippines and Russia agreed to enhance economic relations, with plans to craft a new comprehensive bilateral agreement.
Both countries pledged to enhance trade linkages. Filipino exporters were also encouraged to view Russia as a potential market for their products, diverging from the traditional export markets.
Russia is currently the country’s 27th largest trading partner. Diplomatic relations were established in 1976.
A photo exhibit depicting milestones of Philippines-Russia relations, in celebration of its 35th year anniversary, was launched on Tuesday at the Waterfront Cebu City Hotel and Casino. The photo exhibit will run until June 28.
Kudashev said Cebu, which he described as a “jewel” in the bilateral agreement, is a good partner to improve trade relations with. He cited tourism as one of those sectors that they want to grow.
Honorary Consul of the Russian Federation to the Philippines Armi Lopez-Garcia said tourism and culture are the entry points of trade and investment.
Russian tourist arrivals last year was recorded at 50,000 all over the country, a growth of 200 percent.
“A lot of Russians come here because of the warm hospitality of Filipinos, the good weather and beautiful beaches,” she said.
With the influx of Russian tourists in Cebu, Garcia announced that a short-term course for Russian language will be opened in August at the University of San Carlos. She said it is open to anyone interested to learn the language.
She said the short term course would also enable hotels and hotel and restaurant management (HRM) students to broaden their knowledge and skills in Russian.
“This is one evident partnership with Cebu and the Russian Federation as Russia will be providing materials and professors for the Russian language,” Garcia said.
To increase Russian arrivals in the country, Kudashev said they will also be pushing for more direct flights from Russia to the Philippines next year, with Cebu as a possible destination.
He said the country’s pocket open skies policy will enhance the tourism sectors of both countries. Kudashev said this would further increase the number of Russians visiting the country for vacation.
Currently, Russians fly on their second largest airline TransAero, which launched chartered flights on a Boeing 747 to Cebu from Moscow in November 2010.
“Cebu would be a potential gateway considering the congestion problems at the Ninoy Aquino International Airport,” he said.
Published in the Sun.Star Cebu newspaper on June 24, 2011.
Camella breaks ground on Courtyards
By Mia A. Aznar
Thursday, June 23, 2011
WITH condominium projects sprouting in the middle of the city, a development company is expanding an existing project for those who still prefer to live within the city but not in high-rise homes.
Camella Cebu held the groundbreaking ceremony for the model house of 24 new townhouse units at the Courtyards in Pasadena, an extension of its Pasadena community in Guadalupe, Cebu City.
Camella Cebu north general manager Myra Lynn Gilig said that aside from the exclusivity of a small community, some clients still want the convenience of living in a house with a small garden and open spaces.
She said the Courtyards at Pasadena addresses this, as it is just five minutes away from the city center.
Gilig said this was developed as a response to many inquiries about projects that are closer to the city, as most house and lot packages being offered these days are now located outside of Cebu City.
The 24 new units will be in addition to the 39 existing units at the Pasadena.
After the model house is completed, Gilig said they will complete the roads and amenities by the second half of the year.
The prices of units range from P4 million to P9 million, with corner units and units facing open spaces priced higher.
Gilig added that power lines and other connections are underground. Amenities include a clubhouse, swimming pool and pocket park while the village has closed circuit television surveillance and is managed by a professional property manager to oversee security, landscaping and other homeowner concerns.
Gilig said they have many buyers who come from other provinces and are looking to buy second homes for their children who are studying in Cebu.
Gilig was joined by Camella Cebu south general manager Jasmin Flor Alviola, production head engineer Aireen Sarsaba and architect Christina Goico of G+M Builders.
Published in the Sun.Star Cebu newspaper on June 23, 2011.
GoldPeach Properties breaks ground on One Pavilion Place
GOLDPEACH Properties, the property development arm of retail chain Gaisano Capital Group, recently broke ground on its pioneering project One Pavilion Place.
Led by Gold Peach Properties president Edmund Gaisano Jr. and chairman Henry Gaisano II, the ceremonial groundbreaking officially launched One Pavilion Place to the public. Also present were Valerie Gaisano-Sebastian, VP for admin and finance; Yongson Huan, finance manager; and Nilo S. Miranda II, VP for corporate communications and operations.
Although more popularly-known in the retail industry, the Gaisano Capital Group has been developing its own supermarkets for the past three decades.
With GoldPeach Properties, the retail giant returns to its construction and property development roots, the company said in a press statement.
In his speech, president Edmund traced Gaisano Capital’s history “from being a small independent construction company to becoming one of southern Philippines’ most successful retail giants.”
Citing One Pavilion Place as a flagship project, Edmund also expressed hopes that GoldPeach will become “one of the nation’s most promising property developers.”
Envisioned as an integrated mall and condo development, One Pavilion Place will soon rise in the middle of bustling R. Duterte St. in Banawa.
The master plan is a 26-story residential tower with the first two floors being One Pavilion Mall, which will feature dining, shopping, and entertainment components.
For the One Pavilion Place project, Gold Peach Properties partnered with both TVA&P, Inc., an architectural firm, and ASEC, a recognized leader in residential, industrial, and commercial development.
Market
“It will offer all the amenities of a high quality condominium at affordable prices,” said GoldPeach VP of corporate operations Nilo Miranda II. “We will have a gym, a swimming pool, a children’s play area, multi-level parking, a multi-purpose hall and more.”
Emphasizing location, design, amenities, and affordability as major advantages, Miranda said the development “appeals to a broad market range, including students, yuppies, young couples, start-up families, retirees, etc.”
“One Pavilion Place has something for everyone,” he adds. “It’s a one-stop destination in the heart of the city.” For more info call (+6332) 3181589 | +639173236123. (PR)
Published in the Sun.Star Cebu newspaper on June 22, 2011.
‘Go beyond sealing the deal’
Saturday, June 25, 2011
AFTER-SALES service is important when selling condominiums, an official from a property development firm said.
Speaking before Cebuano brokers in a forum yesterday, Florante Ofrecio, director of sales of DMCI Homes, said selling condominiums doesn’t stop when a buyer hands over the full payment; one secret of the most successful sellers is the after-sales service they extend to their buyers.
“After-sales service is important because this is an opportunity where one can get referrals,” Ofrecio said in the forum “Excell 2011: The Best Practices in Condominium Selling” held at the Radisson Blu Hotel.
He noted that 30 percent of sales back-out is caused by personal issues but 70 percent is due to rude or bad customer service.
“Condominium selling is not only lip service, it is a commitment to product quality. A best broker is one that best delivers excellent service to his or her clients,” he said.
Aside from rendering after-sales service, Ofrecio also advised brokers to be excellent when dealing with clients. He said that although brokers may have the same product to sell and may present their products anywhere, they should always bear in mind that
each client is unique and that they should be well aware of the client’s experience.
“Real estate marketing is recognized by the Philippine Regulatory Commission, so we should at all times be guided by the ethical standards in the profession, because your name is your capital,” he added.
A P300-billion business
Jun Garing, Salesman’s Centre head, noted there is a need for Cebu’s real estate practitioners to continually learn the best and most effective practices, otherwise a glut of condo properties can be expected if good marketing approaches will not be applied.
The forum was said to be the first real estate forum in Cebu organized by the Salesman’s Centre-the Institute of Sales Training and Entrepreneurial Development. It aims to provide brokers effective strategies on how to effectively sell properties to both local and foreign clients.
Ofrecio said the real estate industry in the country is valued at P300 billion in a year. Condo living, which was originally offered to the high-end market some 20 years ago, has now evolved, with the middle-income market as one of its promising markets.
“The market is still there. The middle-income class has grown so much. They are the markets that would absorb the condominium projects that we are building,” he said. But in order to avoid huge inventories, developers should target specific markets.
Ofrecio also credited the optimism of the industry to the sustained growth of overseas Filipino workers’ remittances.
The Bangko Sentral ng Pilipinas (BSP) recently reported that remittances reached $4.6 billion in the first quarter of the year, or 5.9 percent more than what was recorded in 2010.
Published in the Sun.Star Cebu newspaper on June 25, 2011.
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