Updated: Apr 17
PHILIPPINES SHOULD REMAIN AS ONE OF 'GROWTH LEADERS' NEXT YEAR.
According to Oxford Economics expansion will regain momentum in 2019 with global GDP growth forecasted to be at 2.8% in 2019. However, growth in the East Asia and Pacific region is expected to be moderate to a still-robust 6 percent in 2019 and 2020. The Philippines should remain as one of the "growth leaders" in 2019 and is forecasted to grow at 6.5% in 2019 and 6.6% in 2020.
The World Bank's Economic Update on the Philippines presents a positive growth direction in terms of sustainability and inclusiveness, not with standing the Philippine government's efforts to tackle domestics risks through careful fiscal management and timely implementation of tax reforms and public investment programs such as the "Build, Build, Build" scheme. The Philippines is expected to join the ranks of Malaysia, Thailand and China to become an upper middle-economy by 2019.
METRO MANILA STILL HAS MORE ATTRACTIVE RENTAL YIELDS THAN OTHER ASIAN CITIES
Comparing rental yields in Manila with other Asian Cities, the country's capital ranks second with an average yield of 6.13% for luxury condominium units, just Indonesia's 7.40%. Manila's rental yields are better than Cambodia's 5.33%. Thailand's 5.13%, Malaysia's 3.73%, Japan's 2.66%, Singapore's 2.54%, HongKong's 2.35%, India's 2.32%, China's 2.10%, and Taiwan's 2.06%. Thus, Manila yields is still one of the best in the region.
KEY ECONOMIC DRIVERS:
Robust IT-BPO Industry
BPOs provide higher-value outsourcing services such as health information management, software engineering, and finance and accounting. This is reinforced by the recent improvement of Metro Manila's ranking in the latest Tholons global outsourcing destinations in the world. In the latest Tholons survey, Manila's ranking improved to second from fourth in 2017.
Emerging Offshore Gaming Industry
The Offshore Gaming firms are significantly growing and continuously occupying large office buildings with large floor plates. There are 57 offshore gaming firms that have secured licenses from PAGCOR. As of September 2018, offshore space, accounting for 25% of total space absorbed in Metro Manila during the period.
Source: Colliers Top 10 forecast for 2019
RESIDENTIAL ASSETS BUY/HOLD/SELL RECOMMENDATIONS FOR 2019, BY CITY
In the Emerging Trends in Real Estate Asia Pacific 2019 Survey by Price Waterhouse Coopers and Urban Land Institute, Metro Manila, Philippines is seen to be among the "ones to watch" for investors and among he top ten cities in Asia Pacific for recommended residential asset for purchase.
MAKATI CITY REMAINS AS THE PREFERRED FINANCIAL BUSINESS DISTRICT
Amongst the CBDs in the Philippines, Makati City is still the preferred investment destination with only a few areas available for development. One neighbourhood under the LGUs redevelopment plan is the Chino Roces stretch which is envisioned to be the New Gateway to the Metro.
Leading Residential Real Estate developer launches RED RESIDENCES
Following the successes of Jazz Residences and Air Residences, SMDC has recently launched Red Residences. The earlier two projects were launched in Jan 2010 and Aug 2014, respectively, and were quickly sold out. The residential developments have since appreciated by two-fold beating industry averages.