Invest and harness the bounty of 'Bay'.
Indeed, real estate players are now scrambling to corner a piece of land within the Bay Area, where much of the industry's growth can now be traced. And the numbers are there to show the real story behind it.
Surge in land values
To recall, developments in the area began with a retail project in 2006 followed by office and residential towers in 2007.
By 2010, land values in the Bay Area remained marginal at P40,000 per sqm, compared to the more established districts in Metro Manila. In nine years' time, however, the figure has grown to a whopping P330,000 per sqm as of the first quarter this year, according to data from Colliers International Philippines. From 2010 to 2018, land values in the business district have grown by about 28 percent a year, indicating a strong demand in the Bay Area.
'Developers found the area strategic and has a strong potential to capture spillover demand from more established business hubs such as Makati central business district (CBD) and Fort Bonifacio,' said Joey Roi Bondoc, research manager at Colliers Philippines.
'A short distance from Manila, Makati and the Ninoy Aquino International Airport, the area's desirable location has initially proved to be an attraction to companies and corporations looking for cheap office spaces. This is no longer the case as lease rates in the area have gone up. But the dearth of developable land as well as leasable office space in Makati and Fort Bonifacio have compelled tenants to gravitate towards the Bay Area. This has raised land values and office lease rates in the business district,' Bondoc said in an interview with Inquirer Property.
Bondoc added that the Naia Expressway played a crucial role in improving access to the business district, and was partly influential in raising the Bay Area's attractiveness as a business hub.
'This was among the reasons why a number of outsourcing and traditional firms opened offices in the Bay Area, especially for tenants looking for viable location outside Makati CBD,' he said.
Today, the Bay Area continues to attract tech and knowledge process outsourcing (BPO) companies, offshore gaming firms, and government agencies. In fact, office lease rates in the Bay Area are now among the highest in Metro Manila.
In the first quarter this year, office lease rates in the business district grew by about 18 percent year-on-year, and such a strong growth is expected to be sustained over the next 12 to 24 months given the strong pre-leasing of office space from offshore gaming firms.
The influx of offices and investors is likewise fueling the demand for retail/commercial areas and residential projects.
According to Bondoc, pre-selling residential projects are now at about P250,000 to P300,000 per sqm-a far cry from the P40,000-per-sqm price recorded close to a decade ago.
He pointed out that in 2018, the Bay Area outranked Ortigas Center to become the third largest residential market in Metro Manila in terms of condominium stock. As of the first quarter of this year, the Bay Area covered nearly half of all new condominium units delivered during the period. The completion of new condominium units in the Bay Area has been complementing the pace of office space development in the business district.
'But relentless construction in the area should ensure that by 2021, the Bay Area will have the second largest condominium stock, behind Fort Bonifacio,' Bondoc added.
Despite the robust growth, there is still a huge potential that can be tapped in the Bay Area.
'We still see vast potential in the Bay Area in terms of office, retail, and residential segments,' Bondoc said. 'We see land values in the area reaching between P390,000 and P470,000 per sqm by end-2020. From 2019 to 2021, we project land values in the Bay Area to increase between 25 percent and 30 percent (a year).'
Indeed, now is the time to be at the Bay Area, where a few developers have started to make their presence felt.
Among the pioneer residential developers in the Bay Area is Anchor Land Holdings Inc., which is bringing its reputable expertise in creating luxurious projects. This upscale developer is introducing to the market the 16-storey Copeton Baysuites, masterplanned to be an ultra-luxurious project that will rise along Macapagal Boulevard and right beside City of Dreams Manila.
This much-anticipated enclave will feature three magnificent residential towers and will be highlighted with special features such as curtained walls and double glazed glass window panels.
Worth noting is the fact that the Copeton Baysuites sits on one of the most premium areas in the Bay Area, matching the extravagant lifestyle that can be had in this development. Because here, one can revel in an opulent living space within a self-contained community where every need and luxury is well within reach-be it for business, retail or leisure.
Anchor Land is truly redefining luxury and elegance within this bustling district, proof that it's an investment well worth your time and resources.
|Printer friendly Cite/link Email Feedback|
|Publication:||Philippines Daily Inquirer (Makati City, Philippines)|
|Date:||Jun 8, 2019|
|Previous Article:||Celebrating Independence Day away from the Philippines.|
|Next Article:||Puerto Galera: Shoring up tourism, marine ecosystem.|