A viable, yielding investment in Makati’s most desirable Address
Despite the property boom all over the Philippines, Metro Manila’s key cities still enjoy a stable growth and continue to appeal to the market.
For years now, Makati, the Philippines’ financial hub, has been home to prominent companies and institutions, and an incubator to burgeoning business. Alongside, property developers have seen the opportunity to develop commercial centers, entertainment destinations, including residential spaces, making the area a highly desirable investment.
Philippine-based property consultant firms, such as the Colliers Philippines, report that land values here have soared from 20 percent in 2018 to 25 percent this year.
They also explain that movement of prices in real estate is not only driven by well-heeled Filipinos and foreign investors. The strong demand for spaces for new industries is spilling over to the residential sector, particularly in key areas in the Metro, including Makati.
For the coming years, they expect the trend to remain strong, driving property prices higher.
RISING DEMAND FOR UPSCALE CONDOMINIUMS
This year, the high-end residential market will remain upbeat as Metro Manila holds one of the most attractive rental yields in the region, with relatively low prices, and sustained demand from affluent Filipinos and foreign investors, a firm also forecasts.
Colliers added that projects being offered to the secondary market would continue to receive strong demand, which entices the upper market segment to look for similar developments.
“More affluent locals are seeing luxury condominium projects as a viable investment option aside from the stock market. The shift in lifestyle also encourages the high-end investors and end-users from upscale villages to embrace condominium living,” the firm shared.
The vacancy in Rockwell Center, one of the most sought-after addresses in Makati, dropped to 10.3 percent from 11.3 percent during the second quarter of 2018 due to the increasing number of consumers drawn to its community and environment.
Further elevating the area’s already impressive skyline, the premier property developer built the Proscenium at Rockwell with five residential towers aptly called Kirov, Sakura, Lincoln, Lorraine and The Proscenium Residences.
Perched on a 3.6-hectare land in Rockwell Center, the highend development supplements the refined lifestyle of its residents with its sophisticated amenities, including outdoor tennis court, jogging paths and swimming pools with a splash pad and floating river.
Emerging as the greatest Rockwell yet, it will house premium retail establishments, a business center, a helipad and a worldclass Performing Arts Theatre.
With all the offerings of the Proscenium by Rockwell, investors are now highly attracted to the property. As of January 2019, over 60 percent of the owners secured a unit at Rockwell’s newest high-end condominium mainly for investment purposes. Apart from this, overseas investors own over 30 percent of registered units for lease.
Proving that it is indeed a viable asset, the leasing rate is poised at P1,200 to P1,300 per square meter, which is higher compared to other Central Business Districts. For the Proscenium at Rockwell, the expected market yield is at three to four percent and the acquisition yield is set between six to seven percent.
As of February 2018, Rockwell Center still holds the highest rental rate at P873 per square meter per month, followed by Fort Bonifacio and Makati CBD at P810 and P803 per square meter per month, respectively.