RENTAL RATES INCREASING
by Golden Forum Land, Inc.
Rents for 3 bedroom Units
Residential rents for luxury 3-BR units in Makati CBD excalated by 5.2% since January to an average of P566 per square meter per month of P147,160 per month. For the same period last year, escalation in residential rents stood at 9.9%. Full-year rental rate increase is expected to temper to 10% compared with 15% last year due to mounting supply pressure. For 2009, growth will narrow to less than 2% as more supply, both in the CBD and alternative locations looms.
Rockwell still proves to be resilient in the residential market as 3-BR unit’s rent appreciated by 4.4% YTD to P664 per square meter per month or P149,400. Rockwell rents are expected to further improve at the end of 2008 to achieve a 10% growth YoY at P699 per sqm per month. This growth trend extents to 2009 as no new supply is expected until 2010.
Bonifacio Global City’s luxury 3-BR rents rose to P589 per square meter per month or P170,810 per month, a 2% YTD increase. Full year increase in the rental rates should slow to 4% due to influx of new supply and alternatives. This trend will extend to next year as we expect a mere 1% increase in rental rates for 2009
-Colliers Knowledge Report July 2008
Philippine Economy Holding
Despite sky rocketing prices in oil products, automotive sales posted a robust performance with 32,750 units sold in the second quarter of 2008. This translates to a 16% increase in sales from the same period last year (28,058), and 13% increase compared to last quarter’s 28,904 units. Total car sales to date in 2008 stands at 61,654 units. Consumers are banking on more efficient vehicles replacing old cars with new ones. Compared to last year, passenger car sales increased by 13% while commercial cars increased by 18%.
OFW remittances are in track in achieving a 15% increase this year, as first semester figures stand at $8.2B, a 17.2% increase from the same period last year. Last year’s January to June remittances amounted to $7B. Despite a slowdown in the US and other markets, Filipinos continue to remit. The continued growth in volume and amount of remittances is explained by the rise in number of skilles and higher paid workers abroad, up 33.5% for the six months. OFW are also landing into better, higher-paying jobs. These factors, together with the continues enhancement of financial services to OFWs, are behind the resilient inflows.
-Colliers Knowledge Report July 2008
