The real estate sector in the Philippines grew 8.9 percent year-on-year in the third quarter and is poised to sustain its expansion next year, on strong commercial activities, real estate advisory firm CBRE Global Research said Wednesday.
“The continuous transformation of cities into business landscapes will only strengthen the position of the country as an investment destination in the coming years,” CBRE Philippines president and chief executive Rick Santos said.
Santos said the growth was fueled by the positive trends across all sectors, such as efforts to improve public infrastructure, political stability, benign inflation and low interest rates.
He said the upcoming Association of Southeast Asian Nations economic integration was expected to heighten investor interest as foreign companies expanded their market reach.
The advisory firm said third and fourth quarter commitments from offshoring and outsourcing companies boosted the sector’s performance.
The report noted the proliferation of township developments across central business districts such as the Bayshore in Pasay City; City Gate in Makati City; Uptown Bonifacio, McKinley West and Arca South in Taguig City; Woodside City and Capitol Commons in Pasig City; and Vertis North in Quezon City.
CBRE said the diversity of these developments was giving investors more convenient and creative ways to maximize each area.
Vacancy rates among central business districts dropped, with the exception of Quezon City, which increased to 0.93 percent in the third quarter from the previous quarter’s 0.07 percent.
Prime office buildings in Makati are nearly fully leased out, with overall vacancy dropping to 0.58 percent from 1.58 percent the previous quarter.