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This exclusive interview of economist,?John Paul C. Tanchanco was initially circulated for wealth managers, institutional investors, MNCs, financial Institutions, funds, developers, UHNWIs, media researchers, columnists and local and international investors this December 2011.
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Q: Considering the on-going crisis in the USA and sovereign debt crisis in the Eurozone, what do property indicators reveal regarding the Philippine property market in 2012 onward? What is the outlook on the property prices and rent business in Philippine real estate market?
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I believe that the crisis in the Eurozone and the USA are all effects [http://chiefsjersey1.blogspot.com chiefs jersey] of globalization.? The Philippines as a developing country is inversely related to the crisis in the developed world.? This is because the Philippines bring profitable opportunities, resources and hedge strategies to investors that have lost money from the global recession.?
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An example is the BPO sector that is now cutting across multiple business processes for all kinds of organizations even small businesses are now outsourcing.? For every 100,000 jobs that companies abroad are cutting in their home country, they are creating 1,000,000 or even [http://nflreebokjersey56.blogspot.com NFL reebok jersey] more jobs in developing countries like the Philippines who have cheaper labor and leasing prices.? What is happening to business process outsourcing industry in the Philippines [http://dallascowboyswhitejersey.blogspot.com dallas cowboys white jersey] is similar to what has happened to China?when the developed countries moved all their industrial and manufacturing processes into China.
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The Philippine property market is [http://newyorkgiantsauthenticjerseys.blogspot.com new york giants authentic jerseys mwcOsWkT6USbmDE] in its golden era and I believe this demand driven growth is just beginning.? The Philippines remain a very lucrative investment and retirement destination most especially because of the global recession.? Many investment analysts have even dubbed the Philippines as the best outsourcing destination in Asia.
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A CBRE study compared different CBDs across Asia and the Philippines cameout the 3rd cheapest lease rates at US$19.1 per square foot / year next [http://authenticnhljerseys6.blogspot.com OrrYMaqGCNUNWpe authentic nhl jerseys] to Jakarta's 16.3 and New Delhi's $12.7.? I personally believe that alot of investors and MNCs consider the Philippines to be the best because aside from the competitive advantage we have on price, the service oriented friendly attitude and English-speaking advantage of Filipinos are much higher than both Indonesia and India.
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?A Colliers study shows that Implied land values in Makati CBD and Ortigas Center adjusted minimally this quarter. Makati CBD land value is [http://steelersjerseysforkids.blogspot.com steelers jerseys for kids] currently at an average of Php268,900 per sq m, with an accommodation value of 16,800 per developable area. With interest in Makati properties still high, land values areexpected to grow by more than [http://kidnfljersey.blogspot.com kid NFL jersey] 3% in the second half. On the other hand, Ortigas Center land [http://timtebowpremierjersey.blogspot.com tim tebow premier jersey] values are generally stable at the current Php125,100 per sq m, while in BGC price per developable area increased by 7% to P15,000 compared to the same period last year.
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The Philippine property market prices rose evidently to an average of 3%-5% in 2011 but if you factor-in inflation you will see that property prices actually fell.? [http://nflravensjerseys1.blogspot.com nfl ravens jerseys] What does this mean?? Price increases are demand driven.? And this demand is growing.? The real estate industry has been experiencing effects from large shifts in the Aggregate Demand Curve.? A 2010 growth rate of 8.9% has brought about this shift.? I believe the Philippines will still experience major growth from the following economic drivers that would benefit us in the medium to long term:
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?Increase in foreign direct investments in BPO and CBD Offices / Residentials (Makati CBD office grades vacancy is at 3% and is decreasing because of increase demand with No New Supply meetings the high demand in Makati during 2011. Residential vacancy hit 9% even if demand and occupancy demands continue to increase because of the new stock of developments released in 2011)
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?Industrial development demand (there are 64 economic zones accredited to date. This generates over 38,600 ha across the country. Region III, (including Zambales, Pampanga and Clark), dominates the supply stock, while Region IV, particularly the CALABA area,
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