The Philippine retail property sector was only one of three Asia Pacific markets that saw rental rate growth during the first quarter of the year, according to a report by a real estate services group.
In a report by Jones Lang Lasalle, it was noted that only three retail markets in the Asia Pacific region saw rental increases of more than one percent in the first quarter of the year.
JLL said retail rents for the most expensive location centers in a majority of the Asia Pacific retail markets remained stable during the first quarter of 2016.
The Philippines was among the markets that saw rental rate growth during the period at 1.9 percent quarter-on-quarter.
The report noted that average rental rates for shopping centers in the Makati Central Business District was at $578 per square meter per annum in the first quarter of the year.
“Demand for retail space in Manila remained healthy on the back of continued entry and expansion of foreign and local retailers,” JLL said.
JLL also noted that just like most retail markets in the Asia Pacific region, retail demand in Manila was largely driven by the food and beverage (F&B) sector.
“A number of new F&B brands entered the market in 1Q16 including Pepperoni Pizzeria, Morganfield, and The Dessert Kitchen,” the report said.
On a yearly basis, average rental rates for shopping centers in the Makati central business district grew by 8.9 percent.
Other markets in Asia Pacific that saw rental rate growth for shopping centers were Jakarta with a 5.4 percent rental rate growth quarter-on-quarter and Auckland with 2.3 percent growth.
JLL noted that most of the Asia Pacific markets registered small increases, below the one percent mark, or flat rental rate growths during the period.
Overall, the aggregate Asia Pacific Retail Rental Index inched up by 0.3 percent quarter-on-quarter, slightly lower than the 0.5 percent growth posted in the previous quarter.