High-rise construction remains robust in Q3

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The growth in the construction of high-rise units in the Philippines will continue, as real estate companies become innovative in their offerings.

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Romeo Arahan, research analyst of Colliers International, even said that the natural disasters that recently hit the country did not cause a strong blow to the real estate market.

“I guess in a way, it will be affected but in terms of the developers, the way they design their buildings, I guess, they will be more conscious of the fact that we are in an area where we’re vulnerable to some natural disasters. So they will try to create ways wherein buildings can withstand those kinds of events,” he said.

Arahan disclosed that about 2,370 high-rise residential units were completed in the third quarter of this year, while another 4,880 units are about to be completed by the end of 2013 within the five submarkets monitored by Colliers.

Majority of the completed units, or about 70 percent, are located in the Makati Central Business District (CBD) and Fort Bonifacio. The units are mostly studio and one-bedroom units, or 80 percent.

Among those completed are Senta in Legaspi Village, Makati CBD, with 436 units; The Beaufort West Tower along 5th Avenue Corner 23rd Street, Fort Bonifacio Global City, Taguig, with 216 units; and ADB Avenue Tower along ADB Avenue, Ortigas Center, Pasig City, with 672 units.

“In terms of the market, in fact, in Cebu, where there was a [7.2-magnitude] quake, we saw an increase in rentals for residential in Metro Cebu. That’s what we’re still trying to find out because it’s quite weird for the market to actually increase in rentals after a disaster. So we’re still trying to look into that, but that was the feedback that we’re getting from our Cebu office,” the analyst said.

At least for Metro Manila, he said, affordability is still the consideration for buyers. He emphasized that the market would still be there as long as the developers stretch their payment schemes, and try to provide more attractive financing schemes.

Also, more innovations on building planning and architecture will take place to prepare for catastrophic events like typhoons, Arahan assured.

“Based on experience in the Makati villages, most of the rentals that are happening there are primarily for expats and for the ownership. It’s more of the latent elite, the more established families, so I don’t see that there is an exodus happening in the exclusive villages [in regard to the fault lines found]. If ever they are leaving, it is because their contract expired. So it’s more of the natural cycle of the market that is happening,” Arahan pointed out.

Meanwhile, he disclosed that in 2015 and 2016, an average of 5,880 units will be completed each year. This would bring to a total supply of over 78,000 units in the CBDs being covered. Over the next three years, there will be an expected completion of premium high-rise residential units, numbering to about 15 percent of the 17,345 units. More than half of the 2,500 premium residential units with sizes ranging from 53 to 479 square meters will be in Fort Bonifacio.

Colliers International claims to be a leader in global real estate services. It has 12,300 professionals who provide in-depth local expertise from 522 offices in 62 countries, including the Philippines. The company offers brokerage and agency representation on behalf of landlords and tenants, corporate solutions, investment services, project management, real estate management services and valuation and advisory services.

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