Monthly Real Estate News Wrap-up August 2019

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A sneak peek into the real estate headlines of August 2019

Philippine Real Estate Sustains Growth for the Rest of 2019

August 2, 2019

Based on the Jones Lang LaSalle (JLL) Philippines’ property market report for 2019 Q2 in partnership with Lamudi, there is an expected growth in the real estate market by the second half of 2019. The current state of the Philippine real estate market will continue to be dynamic, as it will attract more investments in the next few months. 

There are development completions in the Q2 of 2019 in areas such as Taguig, Quezon City, Pasay, Paranaque, Muntinlupa, and Makati—as there will be around 156,100 square meters of office space to be added to the total building stock in these areas. There is also a higher demand for office developments in McKinley West and McKinley Hill in Taguig City, and in Chino Roces Avenue in Makati City. For residential condominiums, there are about 20,000 units completed in this year’s Q2, and most of these are from Taguig and Makati.

Property Developer Kepwealth to Go Public This Year

August 5, 2019

Kepwealth Property Philippines, Inc. (KPPI), a niche property leasing and asset management company, is poised to become the Philippines’ first company to initiate the initial public offering (IPO) for 2019. This sprang from the approval of the Philippine Stock Exchange (PSE) with respect to the company’s planned 384.8 million-peso stock debut, reports Business World. KPPI, a firm established in 2005, is responsible for the development and management of commercial, agricultural, residential, and office properties, including resorts, hotels, inns, and apartments.

KPPI intends to place short-term liquid investments, including short-term government securities, bank deposits, and money market placements, in order to have predominant market rates. Based on a previous report, the planned procurements of KPPI will lessen the concentration risk of its current operations in Cebu City. 

 

Pag-IBIG Hits Record High Performing Loans Ratio

August 7, 2019

The state-run HOME Development Mutual Fund or Pag-IBIG fund has reached its peak through its high-performing loans ratio (PLR) during the first half of 2019, because of the double-digit growth for home loan payments. This record-high PLR is a reflection of the continuous improvement of the collection efficiency, with around nine out of ten of home loan borrowers paying their monthly amortization on a regular basis.

Business Mirror reports the Pag-IBIG Fund’s PLR increased to 90.6%, which is the highest percentage reached so far for this year. Home loan payment collections from January to June 2019 have risen by 12% annually, from P30.44 billion to P27.22 billion.

 

Ayala Land Sets New Milestone with Mixed-Use Development

August 8, 2019

Ayala Land, Inc., one of the country’s leading land developers, has once again reached a milestone in terms of the real estate industry with the unveiling of the Ayala North Exchange, the noble gateway to the central business district of Makati. This structure utilized mixed-use development in order to make a big difference to Makati’s architecture, lifestyle, and street life.  The Ayala North Exchange is one of the newest additions to Ayala Land Offices’ portfolio.

The Ayala North Exchange will constantly be considered one of the main assets of Ayala Land Inc., which will strengthen the company’s excellent track record in the real estate sector. Through this development, the company utilizes four core areas in their business strategies, namely, local economic development, transit and pedestrian connectivity, eco-efficiency, and site resilience.

 

Ecozone Ban Raises Metro Manila Office Rental

August 20, 2019

Colliers International Philippines, a real estate services firm, reports that the mean office rental rate in the metro is observed to increase by 6% annually until 2021, reports Philstar. Competition for accredited zones of the Philippine Economic Zone Authority (PEZA) drives this trend despite the suspension implemented on the generation of new economic zones. This ban on new economic zones in Metro Manila presumes to delay the expansion of outsourcing offices in NCR. 

Colliers advises developers with pending economic zone applications to pursue fast approval to handle the short office supply in Metro Manila since there is a constant increase in the demand for office spaces from non-outsourcing and traditional firms.

Rehabilitation Plan for NAIA Gets into High Gear

August 23, 2019

Seven of the Philippines’ largest conglomerates unite to create a rehabilitation plan for Manila’s congested airport, Ninoy Aquino International Airport (NAIA). These seven conglomerates include Metro Pacific Investments Corp., JG Summit Holdings Inc., Filinvest Development Corp., Asia’s Emerging Dragon Corp., Alliance Global Group Inc., AC Infrastructure Holdings Corp., and Aboitiz InfraCapital Inc, says Rappler. 

The entire consortium proposes the expansion of NAIA’s holding capacity to give way for existing terminals to be interconnected. The completion time is said to be 15 years, and a budget of P102 billion is also needed. The holding capacity of the airport shall be enhanced from a yearly 30.5 million passengers to 47 million within two years, then to 65 million passengers in four years.

 

Philippine Real Estate Developers Named in Forbes’ 200 Best Over a Billion 2019

August 29, 2019

The inaugural 200 Best Over a Billion (BOB) list of Forbes reveals the top 200 list of companies in the Asia-Pacific region after a careful assessment of their respective sales. Among the 200, eight Philippine companies made it to the list, and from these eight companies, five hold a land development arm that has a goal of improving the Philippines’ landscape through the development of the real estate industry.

The Philippine real estate companies included in the Forbes BOB list are Ayala Corporation ($5.1 billion in sales), GT Capital Holdings ($3.8 billion in sales, and is the company behind Federal Land), JG Summit Holdings ($5.3 billion in sales, with its real estate arm, Robinsons Land Corporation), Megaworld ($1 billion in sales), and SM Investments ($8.5 billion in sales). Cosco Capital, Jollibee, and San Miguel Food and Beverage were also included in the list.

Sources:

https://www.bworldonline.com/kepwealth-raises-p385-million-in-initial-public-offering/,
https://businessmirror.com.ph/2019/08/02/pag-ibig-fund-collects-record-high-p30-billion-in-home-loan-payments-in-h1-plr-climbs-to-90-6/
https://www.bworldonline.com/milestone-ayala-north-exchange-is-the-new-gateway-to-makati-cbd/
https://www.ayalaland.com.ph/ayala-north-exchange-newest-gateway-makati-cbd/
https://www.philstar.com/business/2019/08/11/1942259/ecozone-ban-hike-metro-manila-office-rental-6-yearly
https://www.rappler.com/business/196330-naia-rehabilitation-proposal-department-of-transportation-review
https://www.msn.com/en-ph/money/topstories/super-consortium-submits-revised-plan-for-naia-rehabilitation/ar-AAEz5ST
https://www.forbes.com/asia-over-billion/list/

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