Manila now a top real estate investment market in Asia - survey by Cathy Rose A. Garcia, ABS-CBNnews Posted at 01/10/2014 11:53 AM | Updated as of 01/10/2014 12:03 PM A view of Makati skyline MANILA, Philippines -- Manila has emerged as one of the top real estate investment markets in Asia for 2014, according to a new survey by the Urban Land Institute and PwC. In ULI and PwCs Emerging Trends in Real Estate Asia Pacific report, Manila ranked fourth out of 23 Asian cities in terms of city investment prospects. Tokyo, Japan regained its status as the regions most popular investment destination, followed by Shanghai and Jakarta. Manila outranked Sydney (5th), Guangzhou (6th), Singapore (7th), Beijing (8th), Osaka (9th) and Shenzen (10th). The report attributed for the Philippine capitals rapid rise in the survey to its fast-growing economy, as well as its increasing popularity as a destination for multinational companies for outsourced services. Also cited were the perceived improvements in transparency and governance issues that have long plagued the country. A big mover is Manila, which is up to 4 from 12 last year... Weve been hearing for a couple of years now the success and impact of the BPO sector, as well as the positive demographics and GDP growth, John Fitzgerald, ULI Asia Pacific chief executive, said during a presentation on Thursday evening. Fitzgerald said the survey showed investors are increasingly willing to look at emerging markets such as Manila and Jakarta, as alternatives to traditional markets. Manila, which ranked 8th in city development prospects in the survey, was also cited for its young demographic, strong capital inflows from overseas workers, and a workforce with a cultural affinity with the West. Despite the impact of super typhoon Yolanda and the expected withdrawal of the US Federal Reserves economic stimulus, there are other factors going for us, such as the record-setting remittances from OFWs, increased number of investments and the lower cost of borrowing, Alexander Cabrera, chairman and senior partner at Isla Lipana & Co., PwC member firm in the Philippines, said. But the report noted that Manila can be a difficult place to invest in due to laws that prevent foreigners from majority ownership of land and partly because there is already plenty of domestic liquidity. Manila also received a buy rating for its residential, office and retail sectors, showing the investors confidence in the local market. Manila is a favorite for the office sector, as it was for residential, and for many of the same reasons: an influx of foreign companies has arrived on the market, supporting already buoyant sentiment in a strong economy. Manila also offers the highest prime office yields in Asia, averaging about 10%, the report said. The Emerging Trends report indicated a generally positive outlook for the real estate markets in the Asia Pacific region, particularly Japans return as the favorite market for investment and development. Japans resurgence was attributed to the governments massive economic stimulus plan, which led to many investors snapping up properties in anticipation of higher prices. Emerging Trends provides an outlook on Asia Pacific real estate investment and development trends based on opinions of international real estate professionals. Emerging Trends City Investment Prospects ranking, 2014: 1. Tokyo 2. Shanghai 3. Jakarta 4. Manila 5. Sydney 6. Guangzhou 7. Singapore 8. Beijing 9. Osaka 10. Shenzhen 11. Bangkok 12. Chinas secondary cities 13. Melbourne 14. Kuala Lumpur 15. Seoul 16. Taipei 17. Auckland 18. Hong Kong 19. Ho Chi Minh 20. Bangalore 21. New Delhi 22. Chennai 23. Mumbai
Posted on: Wed, 25 Jun 2014 08:19:57 +0000