2014 ASIA PACIFIC OUTLOOK. China still led the economic growth in 2013 with the Philippines at second. Source: Jones Lang La Salle

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2 2014 ASIA PACIFIC OUTLOOK China still led the economic growth in 2013 with the Philippines at second. Source: Jones Lang La Salle

3 2014 MAKATI RESIDENTIAL MARKET CBD.BONIFACIO GLOBAL CITY.ORTIGAS Rank 4 Rank 8 Based on ULI Asia Pacific 2014, Manila leads in buying in terms of residential, office, and retail. Source: Urban Land Institute, Asia Pacific 2014

4 2014 MAKATI RESIDENTIAL MARKET CBD.BONIFACIO GLOBAL CITY.ORTIGAS RESIDENTIAL: Manila became top investment pick because of the following: Young demographic Growing economy Low vacancies Large number of expatriates OFFICE: Manila became top investment pick because of the following: Influx of foreign companies Offers highest prime office yields in Asia Source: Urban Land Institute, Asia Pacific 2014

5 2014 THE PHILIPPINE OUTLOOK The current GDP growth of 7.2% marks the Philippines as one of the fastest growing economies in Asia The Philippines credit rating accomplishments in 2013 increased investor confidence Net Foreign Direct Investment (FDI) is 35.0% higher compared to Manila still serves as the lowest cost destinations in Asia-Pacific Seven Philippine cities are listed in Tholons 2014 Top 100 Outsourcing destinations Manila in number 2 and Cebu as part of the Top 10. Source: KMC Mag, Metro Manila Property Outlook 2014

6 2014 THE PHILIPPINE ECONOMY The Philippines is one of the fastest growing economies in Asia ranking second to China 2013 Highlights include the following: 7.2% GDP Growth despite calamities Expanding outsourcing sector Strong Private Consumption Growing public investments Improved tourism Constant OFW remittances Real estate sector contributed 16.6% in total to GDP Source: KMC Mag, Metro Manila Property Outlook 2014

7 2014 THE PHILIPPINE ECONOMY Four investment rating upgrades in 2013 resulted to: Increased the confidence of the investors Helped the government execute PPP (Public-Private Partnership) projects such as the LTD-1 railway extension Encouraged private investments Accelerated Net Foreign Direct Investment to 36.6% OFW remittances increased on a 7.1% YoY, reaching $22.7 billion Source: KMC Mag, Metro Manila Property Outlook 2014

8 2014 THE PHILIPPINE ECONOMY Market indicators are all going up: OFFICE: 400,000 sqm of new office space was completed in 2013 with 50% of this coming from BGC. More than 540,000 sqm of office space will be presented in the coming year RESIDENTIAL: 4,400 high-rise residential units were completed in 2013 and around 19,700 units will be turned over in the next three years HOTEL AND LEISURE: 1,372 hotel rooms have opened in Metro Manila in Source: Colliers International 4Q 2013 Market Review

9 2014 REAL ESTATE MARKET OVERVIEW Office market remains robust driven by the BPO sector Manila remains top outsourcing destination over India due to age, education level, English-speaking abilities, labor force, affordable labor costs, and taxation benefits via PEZA Due to demand, prime rental rates increased to 7.2%. Source: KMC Mag, Metro Manila Property Outlook 2014

10 2014 REAL ESTATE MARKET OVERVIEW The country foresees a 6.0% - 8.0% yield Investors and Expats demand for high-end apartments that are spacious and located in prime locations The middle-class purchasing power is the main driving force for the demand in subdivisions, townhouses, and condominiums Source: KMC Mag, Metro Manila Property Outlook 2014

11 2014 REAL ESTATE MARKET OVERVIEW Retail sector is still one of the top performers in the real estate industry fueled by strong consumption and purchasing power There is an increase in the entry of global brands and expansions of local malls to hosts these retailers Tourism is also strong thus there is a high demand for hotel spaces / rooms especially in Cebu and Palawan The serviced office industry is also growing and establishing its presence Source: KMC Mag, Metro Manila Property Outlook 2014

12 2014 REAL ESTATE MARKET OVERVIEW MAKATI: Land values grew by 5.9% with an average price per square meter of Php 341,505 or an accommodation value of Php 21,344 sqm BGC: Land values grew by 2.3% QoQ, with average accommodation value of Php 26,035 per square meter. ORTIGAS: Land values grew by 1.9% at an average rate of Php 143,683 per square meter. Source: Colliers International 4Q 2013 Market Review

13 2014 MAKATI RESIDENTIAL MARKET CBD.BONIFACIO GLOBAL CITY.ORTIGAS MAKATI: residential vacancy rose to 11.0% from 10.1% from third to fourth quarter of However, it is seen to decrease to 9.0% in the next year. BGC: residential vacancy decreased in BGC to 5.0% for the last quarter of However, it is seen to increase in the next year to 7-8% due to additional supply Source: Colliers International 4Q 2013 Market Review

14 2014 MAKATI RESIDENTIAL MARKET CBD.BONIFACIO GLOBAL CITY.ORTIGAS MAKATI: 3BR rental rates for a premium unit rose by 0.4% on a quarter on quarter basis. This is Php 805 per sqm that translates to approximately Php 201,250 for a 250 sqm unit. BGC: 3BR rental rates for a premium unit increased to 1.7% on a quarter on quarter basis. This is Php 808 per sqm that translates to approximately Php 202,000 for a 250 sqm unit. Source: Colliers International 4Q 2013 Market Review

15 2014 MAKATI RESIDENTIAL MARKET CBD.BONIFACIO GLOBAL CITY.ORTIGAS Source: Colliers International 4Q 2013 Market Review