Is Manila the next best location for property investment in Asia-Pacific?
With an office sector vacancy rate below 5pc, and demand growth outpacing supply, analysts are upbeat about Metro Manila
When the subprime mortgage crisis slowed the UK economy nine years ago, British-Filipina entrepreneur Cynthia Celadena started looking for other places to buy property. Celadena, who has made a small fortune reselling forfeited houses in the UK, prefers to invest in property as a growing population will continue to fuel demand for space. She decided to invest in her country of birth, encouraged by news of a growing Philippine economy.
So in 2011, Celadena started buying pre-sell units in the Philippines, and now owns and rents out residential and commercial units.
Celadena’s optimism is not without merit.
The Philippine economy has grown by 6 to 7 per cent in the last five years, on the back of policies and incentives that attracted foreign investors and a steady inflow of remittances from overseas Filipino workers. These supported the country’s property market – specifically the office sector in Metro Manila.
Outpacing peers, exceeding expectations
A report by property consultancy firm Knight Frank issued last September based on data between 2010 and 2016 said that by 2020, Manila would record a 19.1 per cent growth in prime office rents, surpassing other top performers like Brisbane (16.5 per cent), Singapore (15.8 per cent), Bangkok (11.4 per cent) and Hong Kong (10 per cent).
