2012-08-31 14:06:00 - New Business market report from Business Monitor International: "Philippines Real Estate Report Q4 2012"

The Philippines Real Estate report examines the Commercial Office, Retail, Industrial and Construction segments in the context of a sector on the up. After a year of outperformance in 2011 and a strong start up until H112, the outlook for the remainder of 2012 remains relatively rosy, although macroeconomic headwinds remain on the horizon.

With a focus on the principal cities of Manila, Makati City and Cebu City, the report covers the rental market performance in terms of rates and yields over the past 18 months and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of the government led growth on a market soon to be characterised by Public-Private

Partnership (PPP) construction.

A recent pledge by the Philippine government to boost infrastructure spending throughout the remainder of 2012, as well as to improve monetary conditions suggest that a sustained uptick in construction activity is on the cards in the short- to medium term. This will surely have positive repercussions for the industry, in the form of increased demand and most importantly a spur in supply. What is more, BMI believes that 2012 could well be the year the much-touted PPP scheme takes off. There are as many as 13 infrastructure projects in the initial phase of the PPP programme, which are all set to complete their tendering process before the end of 2012. These projects would require time to reach financial closure, as well as complete land acquisition and equipment procurement procedures.


Full Report Details at
- www.fastmr.com/prod/451346_philippines_real_estate_report_q4_201 ..


BMI cautions, however, that there may be a bump in the roadmap towards ongoing growth in the sector. And that bump comes in the form of the present macroeconomic backdrop. Given the government's continued inability to promote growth-positive initiatives, we continue to see the Philippine economy growing well below potential over the medium term.

Key Points

* The Philippines is one of the fastest-urbanising countries in East Asia. With an English-speaking and relatively low-cost workforce, it is ideally placed to participate in high-demand services such as business process outsourcing.
* Many residents of cities in the Philippines continue to experience poverty, environmental degradation and live in slums or other inadequate housing arrangements. Economic development has created rural-to-urban migration.
* Construction: The blistering increase in public construction investment in the first quarter of 2012 supports our view that conducive monetary conditions and robust government spending would bring real growth to the Philippine construction sector. Therefore, we are maintaining our forecasts for the sector, with real growth expected to reach 6.7% in 2012. Beyond 2012, we remain relatively positive towards the sector due to the government's growing ability to boost infrastructure spending as well as pertinent progress made with the government's PPP Programme and key private sector projects.
* Following stronger-than-expected Q112 growth of 6.4% year-on-year, we have upgraded the Philippines' full-year GDP growth forecast from 3.9% to 4.2%. That said, we still expect the economy to slow in the second half of the year as poor external conditions clash with a relatively healthy domestic economy.

Partial Table of Contents:

SWOT Analysis
- Philippines Real Estate And Construction SWOT
- Philippines Political SWOT
- Philippines Economic SWOT
- Philippines Business Environment SWOT
Real Estate Market Overview
- Retail
- Construction
- Manila
- Makati City
- Cebu City
Real Estate Market Analysis - Office
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (PHP per m2/month)
- Table: Net Yield, 2011-2013 (%)
- 2. Terms of Rental Contract/ Leases - H112
- Industry Forecast Scenario
- Table: Forecast Rents - (PHP per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Real Estate Market Analysis - Retail
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (PHP per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms of Rental Contract/ Leases - H112
- Industry Forecast Scenario
- Table: Forecast Rents - (PHP per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Real Estate Market Analysis - Industrial
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (PHP per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms of Rental Contract/ Leases - H112
- Industry Forecast Scenario
- Table:. Forecast Rents - (PHP per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Forecast Scenarios [Query - corrupt numbers]
- Infrastructure Report
- Table: Philippines Construction And Infrastructure Industry Data, 2008 - 2016
- Table: Philippines Construction And Infrastructure Industry Long Term Forecasts, 2013 - 2021
- Construction And Infrastructure Forecast Scenario
- Macroeconomic Outlook
- Table: Philippines - Economic Activity
Real Estate Risk Reward Ratings
- Real Estate/Construction Risk/Reward Ratings
- Table: Asia Pacific Real Estate Risk/Reward Ratings
- Philippines' Business Environment
- Table: BMI Business And Operation Risk Ratings
- Institutions
- Table: BMI Legal Framework Rating
- Infrastructure
- Table: Labour Force Quality
- Market Orientation
- Table: Asia, Annual FDI Inflows
- Table: Trade And Investment Ratings
- Table: Top Export Destinations
- Operational Risk
Competitive Landscape
- REITs
- Construction

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=451346&dt=t

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