FILIPINOS with disposable income will literally have more room to shop even long after the Christmas season. Global real estate services firm Colliers International said on Friday close to 725,000 square meters of new retail space will enter the local market in 2016, as international consumer brands put up more shop in the Philippines.
According to Colliers’ newest report, the new retail space will come from 18 new buildings that the country’s biggest developers will be putting up come 2016.
Seven of the new retail centers will be located in booming Fort Bonifacio in Taguig City, the agency said.
Leading the pack of bullish retail space suppliers is SM Prime Holdings, the Philippines biggest mall-developer and owner of SM Mall of Asia in Pasay City.
SM Mall of Asia is the country’s most expansive mall and the world’s second largest, next to Beijing, China’s Golden Resources Mall, according to Wikipedia.
According to Colliers, SM Mall of Asia’s expansion alone will account for the biggest share of new retail space in 2016, contributing 200,000 square meters.
Next is high-end developer Ayala Land, whose new malls are expected to add over 180,000 square meters of new retail space next year.
Among Ayala Land’s upcoming malls are: The Paradigm in Pasig, South Park District Mall in Muntinlupa, Vertis Mall in Quezon City, and the second phase of the UP Town Center, also in Quezon City.
Other local property giants—Megaworld, Federal Land, and Filinvest Land—are also expected to contribute to 2016’s new retail supply.
Colliers said retail space stock in the third quarter already surpassed the 6 million mark at 6.1 million square meters, with SM Prime having the lion’s share.
In October alone, the company of the Philippines’ richest tycoon Henry Sy put up SM Center Sangandaan in Caloocan and Circuit Lane in Makati, opening up over 35,000 square meters of new retail space.
Colliers said other new supply in 2016 would come from the expansion of the U.P. Town Center, which would contribute 16,500 square meters, and of the Gokongweis’ Robinsons Novaliches, with 5,037 square meters retail space.
New shopping centers will likewise rise next year, specifically, the Dragon8 Shopping Center, with 16,500 square meters; and BGC Stopover Pavilion, with 3,500 square meters, Colliers cited.
According to the global agency, retail vacancy rates in Metro Manila has continued to be low at 0.42 percent, as super-regional malls are at full occupancy.
Vacany rates in regional malls, it said, improved to 1.58 percent from the 4.17 percent in the first quarter of the year.
“Demand for retail space continues to come from international fashion and apparel brands,” said Colliers, “H&M, in particular, is still looking to expand its current portfolio of seven stores in Metro Manila.”