MAJOR commercial development projects are a sign that the Bay Area is “shaping up” to be the next big central business district in Metro Manila, Colliers International said.
“We believe that the Manila Bay area will be the next big CBD in Metro Manila, and it is now shaping up with major residential, retai l, office, hotel and entertainment developments,” Colliers International Director for Research and Advisory Julius Guevara said in a text message.
The Bay Area, roughly the area west of Roxas Boulevard south of the Cultural Center of the Philippines complex, is mostly known for its leisure developments such as casinos, but upcoming office developments are expected to catapult the area into a business district.
Guevara told The Manila Times that the development of office, retail, hotel and entertainment projects in the area is also creating demand for the residential segment.
Guevara noted the large upcoming residential supply in the area, with an estimated 25,000 residential units set to come online in the next few years.
“There’s actually a lot of inventory in the Manila Bay area. SMDC (SM Development Corporation) is the biggest developer there with thousands of units in the Sea Residences, Shore Residences, Coast Residences and S Residences,” Guevara said.
Other developers present in the area, according to Guevara, include Federal Land, Megaworld, Anchor Land, Zhongfa Development, and D.M. Wenceslao.
“The actively selling projects in the area represent an upcoming inventory of almost 25,000 units, so this indicates that there’s a lot of interest in residential projects in the area,” Guevara said.
Similarly, Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. noted the strong inventory of residential units in the area.
“There are approximately 10,000 existing condominium units and more than 18,000 units to be made available by end-2019,” Cordero said in a text message.
Cordero noted that one attractive factor of the Bay Area residential market is the low-density developments it offers.
“Aside from the new commercial and leisure developments, the appeal of Bay City is also due to the famous Manila Bay sunset and relatively low density developments,” Cordero expressed.
The head of research emphasized that another selling point of the area is the accessibility it will offer residents in the future.
“In the future, the area will also be one of the well-linked areas in Metro Manila, with the completion of the NAIA Expressway with direct links to the Metro Manila Skyway system,” Cordero added.
Moreover, Guevara noted that the Bay Area residential market caters to a mix of buyers, depending on the positioning of the project.
“For example, the SMDC projects are under the affordable and mid-income segments so their buyers reflect that profile,” Guevara said.
He added that the area is also attracting customers from the Overseas Filipino Workers (OFW) market, driven by the roadshows abroad conducted by developers.
“Anchor Land and Megaworld have a lot of regional/international investors because of their roadshows abroad,” Guevara concluded.