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By Darwin G.
Amojelar, Reporter
ELECTION-RELATED
spending will further drive up property prices this year, according
to pundits.
In its
fourth-quarter Philippine property market overview released
Thursday, Colliers International Research projected that retail
rentals would rise 7 percent.
In the fourth
quarter of 2006, retail rentals in Ayala Center increased to P1,266
from P1,183 in the same period in 2005. Rental rates in the Ortigas
area also climbed to P1,033 from P965.
Retail sales,
however, were unchanged during that period, as compared with the
4-percent year-on-year growth posted in the course of 2005.
At the close
of 2006, Manila-wide retail vacancy was recorded at 15 percent as
compared with 13 percent in 2005, Colliers said, adding that more
than 400,000 square meters were completed in 2006, or more than
twice the 10-year average new supply of 173,000 square meters.
“Moving
forward, we expect vacancies to remain at 15 percent in 2007 with
more than 300,000 square meters completing in the next 12 months,”
the research firm said.
Colliers said
that developable land values in the central business districts (CBD)
are expected to further increase by 10 percent to an average of
P245,000 per square meter. Land values in the Makati CBD continue to
command a premium over Fort Bonifacio. Values in Fort Bonifacio are
pegged at an average of P125,000 per square meter or an
accommodation value of P12,500 a square meter. At the Ortigas CBD,
average land values are estimated at P107,500 per square meter from
P97,750 previously.
The research
firm also said that Makati CBD residential prices appreciated by
nearly 10 percent in 2006 to end the year at an average of P82,500 a
square meter. It expects residential rentals to further escalate by
10 percent in 2007 to an average of P520 per square meter a month,
or P135,135 a unit.
Global
Property Guide, a local market advisory firm, reported that the
Philippines saw residential property prices rise the most in Asia
last year, with prices increasing 15 percent on average.
Trailing the
Philippines were South Korea with a 12-percent housing price
appreciation, followed by Singapore, 10 percent; Indonesia, 6.6
percent; Thailand, 1.87 percent and Malaysia, 1.40 percent.
Global
Property Guide said that the strong economic growth and reduced
inflation contributed to the continued recovery of the real-estate
sector in the Philippines. In addition, demand from overseas
Filipino workers and dual citizens has been strong, pushing prices
up, it added.
“A victory
for President Arroyo’s party in the upcoming congressional
elections would be positive for real estate. Election years in the
Philippines bring money inflows, but also increased uncertainty,”
Global Property Guide said. If Mrs. Arroyo’s party wins enough
seats in Congress, then the President will push for constitutional
change, removing limits on foreign ownership of real estate, which
would be good for the property market, the research firm said.
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