Southeast Asia Outlook 2023

MARKET STATISTICS

INDUSTRIAL (INDUSTRIAL LAND MEGA MANILA)

OFFICE (CBD GRADE A)

RETAIL (SHOPPING CENTERS)

RESIDENTIAL (LUXURY NON-LANDED)

$2.10

$3.00

$0.40*

$2.00

Rents Q4 2022 (PHP psf pm) 2023 Forecast

   

16.32%

20.0%

5.0%

16.0%

Vacancy Q4 2022 2023 Forecast

PHILIPPINES: MANILA MA R K E T S NA P S H OT

   

Current Inventory

98.9 Million SF

101.8 Million SF

5,607 Hectares

388,000 Units

Pipeline Supply (2023-2027)

13.6 Million SF

9.1 Million SF

410 Hectares

15,000 Units

% of Current Inventory (Pipeline Supply over Current Inventory)

ECONOMY

13.7%

9.0%

7.3%

3.8%

   

The Philippine's GDP continued its growth trajectory, recording a full-year growth of 7.6% in 2022 from 5.8% a year ago. The latest growth is the fastest since 1976 and surpasses the government’s growth target range for the year of 6.5%-7.5%, owing to the buoyant household spending and services sector which offset the slower growth of the industry sectors, particularly in the manufacturing and construction industries. For 2023, the growth target has been set within the range of 6.0%-7.0%, taking into consideration the effects of external headwinds and the increasing price levels.

Capital Value Outlook

*Selling price of land in industrial estates

RECENT SIGNIFICANT DEALS

INVESTMENT OPPORTUNITIES

PROPERTY NAME

PROPERTY TYPE

PRICE (MIL USD)

BUYER

SELLER

DATE

1. INDUSTRIAL: Despite the downward trend in the manufacturing and external trade segments, the growth of logistics facilities and industrial estates is being driven by the continuous expansion of the online economy. This is spurring growth of industrial assets in nearby provinces of Metro Manila, particularly in the areas of Calabarzon and Central Luzon. Growth prospects remain buoyant with great opportunities seen in cold storage facilities, data centers, and fulfillment centers, among others. 2. OFFICE: The recovery of the office market remains on track, with only a few buildings posting slight downward rental adjustments. However, rental flexibility depends on the amount of space to be taken by prospective tenants. Positive rental growth is likely to happen in 2023, as delayed prospects are

expected to get a green light this year, giving confidence to developers and landlords to test resistance levels on the pre-pandemic published rates, while the overall market vacancy tapers down. 3. LUXURY HOMES: Demand for luxury residential condominiums in key business districts remain strong as business activities have begun to normalise. The higher interest rates are likely to have minimal effect on the high-end residential segment, as the target market continues to place premium on high quality project and often without the need for any leverage.

Cyberscape Gamma

RL Commercial REIT

Robinsons Land

Office

112.2

Q2 2022

A.T. Yuchengco Centre

House of Investments Inc

RCBC

Office

115.6

Q2 2022

Source: RCA, Cushman & Wakefield Research

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Southeast Asia Outlook 2023: Bouncing Back Stronger | 28