Property loan...

also noted that the BSP had similar rules implemented in 2008 but with very minimal impact on the housing sector.

He said that while 2014 and 2015 will have strong residential supplies, there will be a modest supply situation starting 2016.

This year, Cordero has projected total supply hitting 58,000 units from 41,800 units in 2013.

Majority of the future supply will be covered by developers SM, Megaworld, Ayala Land Inc. and DMCI. By 2020, Cordero said the Henry Sy- owned property developer will top Metro Manila market overtaking Andrew Tan’s Megaworld.

Cordero said the BSP directive could create a possible slowdown in project launches, stricter credit standards and on developers with buyers relying significantly on bank loans.

On one hand, he said the BSP ruling will reduce possible contagion effect in the case of negative shocks to the real estate sector.

It will also mean positive credit ratings for banks and potential improvement of cash flows for developers.

In the office space market, JLL Head of Project Leasing Sheila Lobien said there have been a total of 500,600 square meters of space committed as of end November this year.

“This is a record, very historic for the industry that office space had finally breached the 500,000 square market,” she said.

Robust supply will continue up to 2017 with total supply hitting 340,300 sqm in the major business districts in Metro Manila.

Because of tight supply, office rental rates in Metro Manila’s major business districts will continue to move upward in the next several years with new supplies just matching up strong take up leaving very low vacancy rate of 4 percent.

Makati Grade A offices have increased rental rate of 22 percent in the fourth quarter this year to 1,000 per square meter from 820 in the same fourth quarter in 2013.

Quezon City has the highest increase of 30 percent to 700 per sqm from only 540 in the fourth quarter of 2013.

The higher rates in the two business districts are caused by limited supply.

Makati prime offices has 12 percent increase to 1200 from 1050; Global City at 2 percent with 2 increase, Alabang with 7 percent while Bay City has steady rental rate of 500 per sqm.

Overall, the property management and consultancy firm projected of stable supply and demand situation due to continued positive outlook of the economy, expansion of the BPO sector, healthy flown of remit ances from overseas Filipinos.