RP residential mkt to perform well this year, says CBRE

(The Philippine Star) Updated February 17, 2012 12:00 AM

MANILA, Philippines - Leading real estate services and advisory firm CB Richard Ellis (CBRE) Philippines said in a recent briefing that the residential market will remain upbeat in the 2012.

According to CBRE Philippines, a total of 259,380 residential condominium units have been launched from 2000 to 2011. With the exception of 2005 and 2009 when units launched dropped by 35% and 4%, total number of units launched on a yearly basis has been steadily increasing. 2011 alone show a 29% increase from 2010 with 57,979 units launched—reflecting the strong demand in the residential sector.

Own your first Condo for as low as 3,500/month

Developers are continuously expanding their portfolios with several announcing their plans to issue IPO’s and secondary offerings to be able to actively pursue residential projects. A total of 105,722 units are expected for turnover starting this year while at least 14,112 residential condominium units or no less than 743,438 square meters of saleable area estimated to enter the market in 2012.

This increase in numbers indicates developers’ confidence on the residential market, especially in the mid-income sector. Most of the upcoming supply in the residential market will cater to the middle-income segment.

While the high end market will remain in demand in 2012, developers will focus in developing more middle market condominium developments. Developers agree that while there is a market for high-end condominiums selling at an average of P100,000 per square meters, the bigger market and greater opportunity is with the pent-up demand for affordable condominiums selling at a price range of P45,000 to P80,000 per square meter depending on the project location.

This niche market of affordable condominium developments is designed to cater to the broad middle-income market sector which mostly consists of young professionals and start-up families looking for their primary homes within Metro Manila, emerging urban centers such as Metro Cebu and Davao, and within the fringes of these business districts. More flexible payment schemes and better interest rates offered by banks will fuel uptake of this mid-income residential market.

Lui Matti, Executive Director for CBRE Asset Services Group shares that, “The shift from horizontal style housing to the more practical condo type development, with pricing now suited to a much wider range of buyers, shows the progress we are making towards becoming a more competitive economy. We are now getting more value out of each square meter of land, as well as lessening reliance on private transportation brought by developments in the residential market, much in the same way as Hong Kong and Singapore have done before us. We see 2012 as another buy year for shoppers, with a wide choice of projects each with unique amenities, and access to the right kind of financing.”

For more information, visit www.cbre.com.ph or call +632.752.2580.

RP residential mkt to perform well this year, says CBRE

(The Philippine Star) Updated February 17, 2012 12:00 AM

MANILA, Philippines - Leading real estate services and advisory firm CB Richard Ellis (CBRE) Philippines said in a recent briefing that the residential market will remain upbeat in the 2012.

According to CBRE Philippines, a total of 259,380 residential condominium units have been launched from 2000 to 2011. With the exception of 2005 and 2009 when units launched dropped by 35% and 4%, total number of units launched on a yearly basis has been steadily increasing. 2011 alone show a 29% increase from 2010 with 57,979 units launched—reflecting the strong demand in the residential sector.

Own your first Condo for as low as 3,500/month

Developers are continuously expanding their portfolios with several announcing their plans to issue IPO’s and secondary offerings to be able to actively pursue residential projects. A total of 105,722 units are expected for turnover starting this year while at least 14,112 residential condominium units or no less than 743,438 square meters of saleable area estimated to enter the market in 2012.

This increase in numbers indicates developers’ confidence on the residential market, especially in the mid-income sector. Most of the upcoming supply in the residential market will cater to the middle-income segment.

While the high end market will remain in demand in 2012, developers will focus in developing more middle market condominium developments. Developers agree that while there is a market for high-end condominiums selling at an average of P100,000 per square meters, the bigger market and greater opportunity is with the pent-up demand for affordable condominiums selling at a price range of P45,000 to P80,000 per square meter depending on the project location.

This niche market of affordable condominium developments is designed to cater to the broad middle-income market sector which mostly consists of young professionals and start-up families looking for their primary homes within Metro Manila, emerging urban centers such as Metro Cebu and Davao, and within the fringes of these business districts. More flexible payment schemes and better interest rates offered by banks will fuel uptake of this mid-income residential market.

Lui Matti, Executive Director for CBRE Asset Services Group shares that, “The shift from horizontal style housing to the more practical condo type development, with pricing now suited to a much wider range of buyers, shows the progress we are making towards becoming a more competitive economy. We are now getting more value out of each square meter of land, as well as lessening reliance on private transportation brought by developments in the residential market, much in the same way as Hong Kong and Singapore have done before us. We see 2012 as another buy year for shoppers, with a wide choice of projects each with unique amenities, and access to the right kind of financing.”

For more information, visit www.cbre.com.ph or call +632.752.2580.

Shang Properties allots P35.5 B for condos, hotel

By Zinnia B. Dela Peña (The Philippine Star) Updated February 22, 2012 12:00 AM

MANILA, Philippines - Shang Properties, the real estate development arm of Malaysia-based conglomerate Kuok Group in the Philippines, is spending more than P35.5 billion to develop luxury high-rise residential buildings in Ortigas and Makati and an ultra-deluxe Shangri-La Hotel in Bonifacio Global City.

In a disclosure to the Philippine Stock Exchange yesterday, Shang Properties said the group remains bullish about business prospects in the Philippines with three large-scale projects ongoing.

Own your first Condo for as low as 3,500/month

A big chunk of the programmed capital budget, amounting to P18 billion, was earmarked for the 60-story Shangri-La hotel at the Fort, which will house 577 guestrooms and 97 hotel residences. It will also include the construction of 96 exclusive residential condominium units.

More than P12.5 billion was allotted for One Shangri-La Place, a 64-story twin tower mixed-use project in the Ortigas central business district. The project will have more than 1,300 posh residential units atop a high-end six-level mall podium that will be home to about 150 luxury shops and restaurants.

Target completion date of the mall expansion is 2013 while the upscale residences are slated for completion in 2014.

One Shangri-La Place registered sales of P200.8 million in the nine months ending September 2011.

Meanwhile, the company’s newest project, Shang Salcedo Place, will require about P5 billion in capital outlay. Located at the corners of Buendia, HV Dela Costa and Tordesillas streets in Makati’s Salcedo Village, the 65-story residential project will have over 700 units and is slated for sales launch in the second quarter of the year.

The group has allotted an additional P2 billion to refurbish the existing Shangri-La mall, its carpark building and the Shangri-La estate.

Shang Properties posted a net income of P1.1 billion last year, slightly higher than the P1 billion recorded in 2010.

Adequate power supply seen for Cebu in 2 years

2/22/2012 CEBU will have sufficient power supply at least until the next two years, the Department of Energy in Central Visayas (DOE-7) said yesterday. DOE-7 chief Antonio Labios said there is more than enough power to ensure there won't be any major power interruptions unless caused by technical problems. "We still have power reserve enough for Cebu's needs," he said. But Labios warned that unless existing power providers expand their operations or new players joint the industry, 2015 and onwards would again be considered as critical times. Own your first Condo for as low as 3,500/month Labios was at Cebu City Hall for a power stakeholders forum initiated by the Freedom from Debt Coalition. He said the highest demand for power for Feb. 21 was estimated at 677 MW but the dependable capacity was at 696 MW leaving a reserve of 19 MW. In his presentation, Labios said the maximum demand for the Visayas grid is now at 1,277 MW but its maximum capacity is at 1, 722 MW. Power demand growth rate is placed at 4.55 percent annually. If demand goes more than expected, reserve power may be used up even before 2015, he said. Also during the forum, FDC officials said the Energy Power Industry Reform Act (EPIRA) law "failed to solve the long running crisis of the power industry." Labios said the DOE was open to support an amendment of the law. "The EPIRA is a dynamic law. It can adjust to the present situation," said Labios. But he said there are a lot of factors that result to reduction of power rates and not just the EPIRA amendment. Labios said electricity cooperatives have to improve their efficiency to reduce losses. /Chief of Reporters Doris C. Bongcac- CDNews

Cebu firm to build retirement village, hospital

By Katlene O. Cacho

Sunday, February 19, 2012

REAL estate firm Everjust Realty Development Corp. is in discussion with an international partner for a retirement village and hospital facility it plans to put up northern Cebu.

In a recent interview, Everjust Realty president Justin Uy said the company is considering a five-year plan for the construction of a retirement village in Consolacion and a hospital in Mandaue.

Own your first Condo for as low as 3,500/month

The construction of the projects will be done simultaneously.

Uy said they will be meeting with an international partner this week to talk about management and operations of the hospital so that the facility can adopt international standards and get international accreditation.

He said the hospital will cater to the heath care needs of residents living in his retirement village, which will be built on a 10-hectare property in Consolacion.

Uy, who also owns Profood International Corp., the largest manufacturer and exporter of processed food, recently ventured into the real estate business with the opening of J. Center Mall on A.S. Fortuna St.

The company also ventured into Cebu’s booming tourism industry with its majority acquisition of the Imperial Palace Waterpark and Spa in Mactan and the opening of a Profood Gallery inside its manufacturing plant.

Uy said the development of the retirement village and hospital is meant to boost the company’s expansion into the tourism industry by tapping retirees and medical tourists.

In a study conducted by healthcare business intelligence firm Healthcore, the country earned an estimate $1.30 billion in health care and wellness services in 2006 to 2010 from overseas foreign tourists and balikbayans.

Projection

The study projected that the Philippines has the potential to earn as much as $1 billion to $3 billion yearly by 2018 if it would invest aggressively on healthcare infrastructure, offer more open and liberal travel arrange¬ments for medical tourists and lay down an extensive international marketing promotions cam¬paign.

The study also said the country has the potential to grab a larger market share in the global medical tourism industry based on inherent advantages such as high level quality and competitive costs in healthcare services; large supply of competent healthcare professionals, excellent communications skills; and its proximity to countries like Guam, Micronesia, Australia, Japan, South Korea and Taiwan, which have high costs of medical services.

International research firm Deloitte also identified the Philippines as one of the emerging players in the multi-billion dollar industry, which is currently dominated in Asia by Singapore, Malaysia and Thailand.

As for the retirement market, Cebu is reported to be well-positioned to attract foreign retirees.

The Philippine Retirement Authority said that outside the National Capital Region, the preferred places for retirement in the Philippines are Baguio, Subic and Clark in Pampanga, Davao and Cebu.

“Similar to popular Hawaiian islands such as Honolulu and Maui, Cebu boasts of both natural wonders and urban conveniences, which are very appealing to retirees,” said PRA general manager Veredigno Atienza. To learn more about our future project, pls contact us at 0917.3236123.

Published in the Sun.Star Cebu newspaper on February 20, 2012.