FOR individual investors thinking of riding the real estate sector’s upswing, strata titled offices are their best bet for 2016, according to online listing site Lamudi Philippines.
Next best investment options are apartments and townhouses, townships outside Metro Manila, residential lots, and high-end condominiums, Lamudi said.
Strata titled buildings are those that have multiple unit owners across a single property. The concept originated in Australia to allow corporate ownership structures in multi-level apartment buildings. The word “strata” means “levels.”
Lamudi Philippines said strata titled offices are perfect for individual investors, since they can buy units and have them rented out to various companies.
The online property firm pointed out this type of office space can cater to a wider market, unlike business process outsourcing (BPO) office towers, which are rented out specifically to BPO companies.
“For property buyers looking to diversify their investment portfolios, this property type makes sense, as there is currently a shortage of office space in Metro Manila, especially in the major CBDs, placing an upward pressure on rental rates,” Lamudi said.
Some of the strata titled developments currently in the market, mentioned Lamudi, are the Alveo Financial in Ayala Avenue, The Stiles in Circuit Makati, Century Spire in Century City, Capital House in Bonifacio Global City (BGC), One World Place also in BGC, and Parkway Corporate Center in Alabang.
Apartments and townhouses, meanwhile, are two property types most searched for by Filipinos, especially in the suburban areas of Quezon City, Parañaque, and Las Piñas, according to Lamudi.
“These properties are very much in demand among renters, especially starting families, as they provide much larger spaces than condos yet they are more affordable than standalone houses,” said Lamudi.
Third on the list are townships located outside of Metro Manila. Lamudi noted that the uptrend in land values in Metro Manila are driving developers to look for other areas to build projects in.
Some of these projects are the Azure North by Century Properties in San Fernando, Pampanga and Ayala Land’s Alviera in Porac, Pampanga.
On the fourth spot are residential lots, which are highly sought after, according to Lamudi, making land values appreciate quickly.
An example of this property type is the 62-hectare Alabang West development by Megaworld Corporation subsidiary Global-Estate Resorts Inc.
Upscale condominiums in the major central business districts grab the fifth spot on the list, as high-end condos, especially larger ones, are “expected to perform well both in capital appreciation and rental rates,” according to Lamudi.
Lamudi cited data from real estate services firm Jones Lang Lasalle that said “rents for Metro Manila luxury condos continue to grow, albeit modestly, on the back of strong demand from expatriate employees of multinational corporations.”