Wazzup Pilipinas!
The rise of millennial travelers, Filipinos’ increasing spending power, and aggressive expansion of commercial property developers in cities outside Metro Manila—these are just some of the key trends discussed during the Asia Pacific Real Estate Investment Summit Thursday. Lamudi Philippines (www.lamudi.com.ph) managing director Jacqueline van den Ende moderated the discussion on these key trends.
Retail
According to Lourdes Alano, vice-president for leasing at Robinsons Land Corp., key trends in retail include expansion outside Metro Manila due to rising land values within the capital, the rise of community malls, expansion of convenience store chains driven in part by the 24-hour BPO economy, and the increasing competition due to new retail channels such as podium retail-space in mixed-used condo developments and online channels.
Hospitality
Al Legaspi, chief operating officer of Ayala Land Hotels and Resorts, said that the 10 million foreign visitors target is a bit of a stretch, given that the country has so far only managed to attract half of that number. However, despite this domestic and foreign tourism is growing. Cebu, for example, experiences plenty of demand in hotel rooms, according to Legapsi, where occupancy rates in Ayala’s hotels in the city reaching 80 percent.
Another emerging trend in hospitality is the growing number of millennial travelers, which at present account for 20 percent of travelers. According to Legaspi, by 2025, millennial travelers will comprise 50 percent of all travelers. Brands therefore must think of ways to better cater to this growing clientele. Legaspi said that this demographic group are very value conscious, and are after the connectivity rather than the traditional definition of luxury.
Commercial
The growth of the millennial population is also shaping commercial real estate, especially offices, according to Lars Wittig of Regus Philippines. He said that millennials demand flexible working spaces closer to home given Metro Manila’s horrendous traffic conditions.
In addition, Michael McCullough of KMC MAG Group said that although the demand for office real estate in Metro Manila is driven by the business process outsourcing (BPO) industry, there is a growing demand from traditional businesses, and this is evidenced by a number of strata-titled office developments launched recently by developers. He added that new commercial hubs are sprouting in Metro Manila, such as the Bay City and C5 corridor.
Residential
For residential real estate, there is a growing focus on affordable and economic housing as a response to the country’s mounting housing backlog (currently estimated at 5 million housing units), according to Ramil Lobos, chief financial officer of DMCI Homes. He added that developers are shifting their focus from pure residential development toward mixed-use developments, and land scarcity in Metro Manila is driving expansion in the provinces.
Commercial
The growth of the millennial population is also shaping commercial real estate, especially offices, according to Lars Wittig of Regus Philippines. He said that millennials demand flexible working spaces closer to home given Metro Manila’s horrendous traffic conditions.
In addition, Michael McCullough of KMC MAG Group said that although the demand for office real estate in Metro Manila is driven by the business process outsourcing (BPO) industry, there is a growing demand from traditional businesses, and this is evidenced by a number of strata-titled office developments launched recently by developers. He added that new commercial hubs are sprouting in Metro Manila, such as the Bay City and C5 corridor.
Residential
For residential real estate, there is a growing focus on affordable and economic housing as a response to the country’s mounting housing backlog (currently estimated at 5 million housing units), according to Ramil Lobos, chief financial officer of DMCI Homes. He added that developers are shifting their focus from pure residential development toward mixed-use developments, and land scarcity in Metro Manila is driving expansion in the provinces.
Ross is known as the Pambansang Blogger ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart.
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